Bottom line
- Total investment $106K – $159K including a $50K franchise fee, 6.0% ongoing royalty.
- Average unit revenue of $487K/year (median $289K).
- Rated STRONG with a risk score of 41/100. SBA loan default rate of 0.0% across 80 loans (below the industry average).
Item 1 · who you're contracting with
The Franchisor
Yale framework · single-unit ROIC
Returns Analysis
Pulls Item 7 (investment) and Item 19 (revenue) from this brand's FDD into the Yale unlevered-ROIC formula. Override any input to stress-test it against your own assumptions.
The model · Yale framework
What would one CMIT Solutions unit return on the cash you put in?
Unlevered ROIC · per unit
38%
In Yale's "attractive" band (30–60%)
Levered LBO scenario · Yale Crease Capital framing
What would 25 CMIT Solutions units return on equity?
Equity IRR · 5-yr
49.9%
7.57× MOIC
Year-1 DSCR
1.88×
EBITDA ÷ debt service
Equity required
$780K
on $3.9M purchase
Total debt
$3.1M
SBA $1.9M + senior + seller note
Overview
About
CMIT Solutions franchisees operate managed IT services (MSP) businesses, providing small-to-medium businesses with cybersecurity, cloud infrastructure, network management, and technical support. Day-to-day work involves onboarding SMB clients, managing recurring service agreements, handling help desk tickets, deploying IT solutions, and generating recurring service revenue through GPS (Gross Profit Share) royalty calculations.
Item 7 · what it costs
The Vitals
Item 19
Financial Performance
Item 20 · unit dynamics
The Growth Chart
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 15 states with active franchisees
The Territory Map
Derived from franchisee contact records. Shows states with at least one current operator — not where the franchisor is registered to sell new units (that data is re-extracting in a future refresh).
States derived from franchisee phone area codes (Item 20). Approximate — ported numbers may show the original state, not the franchisee's current location.
Government records
SBA Loan Data
Aggregated from SBA 7(a) loan disclosures, public data unique to FranchiseVerdict.
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
CMIT Solutions presents moderate-to-cautious risk due to lack of financial transparency (no Item 19), modest unit growth, and absence of disclosed net income data needed to validate ROI claims.
Score breakdown · what drove the 41 / 100 rating
- 01MEDNo Item 19 (Average Unit Volume) disclosed — cannot independently verify the stated $487,310 average revenue or validate profitability claims
- 02MEDAverage net income not disclosed — unable to assess actual franchisee profitability after royalties (6%), operating expenses, and debt service on $106K-$159K investment
- 03MINORSlow unit growth of 6.7% YoY with 278 units — suggests market saturation, competitive pressure, or franchisee satisfaction issues in a mature 10-year-old system
- 04MINORHigh initial investment ($106K-$159K) combined with 6% royalty creates break-even risk if revenue underperforms or customer acquisition costs rise
- 05MED10-year franchise term is longer than industry average (5-7 years) — locks franchisees into relationship with limited exit flexibility
Severity inferred from the FDD text · not a regulatory classification
FDD Items 5, 6, 12, 17 · continued from Risk & Legal
Contract & Territory Detail
Item 11
Training & Operations
Item 20
Franchisee Contacts
Phone numbers extracted directly from this brand's FDD Item 20. After purchase, you'll also receive a list of validation questions tailored to this brand.
Franchisee contacts
23 numbers
One-time purchase · CSV download · Validation questions included
FDD download
CMIT Solutions · FDD (2025) PDF