CMIT SolutionsFranchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
FranchiseVerdict summary · 2026
A CMIT Solutions franchise requires a total initial investment of $106K – $159K, including a $50K franchise fee and an ongoing 6.0% royalty[2]. Per the 2025 FDD, average unit revenue was $487K[2]. SBA 7(a) loans show a 5.8% charge-off rate across 52 loans[1]. Verdict grade: A. Run a live ROI scan →
Data last verified June 18, 2026 · figures per the 2025 FDD issuance
Overview
- Investment
- $106K – $159K
- 31st pct Business Serv…
- Avg gross sales
- $487K
- 11th pct Business Serv…
- Royalty
- 6.0%
- 9th pct Business Serv…
- Units
- 278
- 50th pct Business Serv…
- SBA default
- 5.8%
- system-wide median varies by category
Quick verdict · Business Services · color = vs category peers
Green = >15% above Business Services avg · No shading = within ±15% · Red = >15% below avg · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
Each dollar invested generates 3.7x in gross revenue, well above the typical 1.5-2.5x range.
Bottom line
- Total investment $106K – $159K including a $50K franchise fee, 6.0% ongoing royalty.
- Average unit revenue of $487K/year (median $289K).
- Verdict A (Top Quintile) with a risk score of 25/100. SBA loan charge-off rate of 5.8% across 52 loans (near or below the 16% franchise average, based on all SBA 7(a) franchise lending, 2010–2024).
Item 1 · who you're contracting with
The Franchisor
- Legal entity
- CMIT Solutions, LLC
- Parent company
- Encore TopCo, LLC
- Incorporated in
- TX
- HQ
- 9433 Bee Caves Road, Building 3, Suite 210, Austin, TX 78733
- Auditor
- Calvetti Ferguson
- Audited financials
- Franchisor revenue
- $27.7M
- vs $30.4M prior year
Independent franchisee associations
- Franchise Advisory Council (FAC)
Franchisee-led councils or alliances disclosed in Item 20. Indicates operator voice.
Affiliated brands
- CMIT Solutions Marketing Fund
- CMIT Solutions of Canada
- CMIT Solutions National
Other brands the franchisor or its parent operates (Item 1).
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.
- CEO
- Roger Lewis
- Headquarters
- TX
- Founded
- 2009
- FDD year
- 2025
- States available
- 37
FDD Item 7 · 2025 filing · 7 line items
Initial investment breakdown
| Line item | Low | High | |
|---|---|---|---|
| Initial Fee and Territory Feenot refundable | $50K | $60K | |
| Training expenses | $3K | $4K | |
| Real property and leasehold improvements | — | — | |
| Initial marketing | $12K | $12K | |
| Business management and technology system | $2K | $3K | |
| Accounting set-up | $2K | $2K | |
| Additional funds - 6 months | $39K | $79K | |
| Total initial investment | $106K | $159K |
Line items extracted from FDD Item 7. Ranges reflect the franchisor's stated low and high per line. Total is the sum of line-item lows / highs — actual costs may fall outside this range depending on market and build-out scope.
Single-unit · estimated
Returns at a glance
Indicative numbers using FDD Item 7 / Item 19 inputs and category-benchmarked cost ratios. Full single-unit, 25-unit portfolio, and LBO models (with every input editable to stress-test your own scenario) live on the financials page.
Store EBITDA · annual
$73K
15.0% margin
Unlevered ROIC
38%
EBITDA / total invested capital
Payback
31 mo
cash-on-cash, unlevered
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $106K – $159K
- Better than avg vs category
- Liquid capital req'd
- $39K – $79K
- Near category avg vs category
- Franchise fee
- $50K – $60K
- Better than avg vs category
- Royalty
- 6.0%
- Greater of 6% of GPS Revenue or the Minimum Royalty · typical 6–8%
- Ad fund
- 2.0%
- typical 3–5%
- Total fee load
- 8.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 6.0% of gross sales |
| Marketing / ad fund | 2.0% of gross sales |
| Technology fee | $150 |
| Transfer fee | $15K |
| Renewal fee | $5K |
| Total fee load | 8.0% of rev |
Financial Performance
- Avg gross sales
- $487K
- Per unit, per year
- Median gross sales
- $289K
- Item 19 type
- gross_sales
- Sample size
- 136 units
- vs category median 32 · large
- Range (low → high)
- $17K→$3.0M
- Cohort dispersion (min → max)
- Transparency
- 7 / 5
- vs category median 3 / 5 · above
Compared against 360 Business Services brands
vs Business Services averages
How CMIT Solutions Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 278
- Opened
- 24
- Last reporting year
- Closed
- 7
- Turnover rate
- 2.5%
- Company-owned
- 6
- Corporate units in the system
- % franchised
- 98%
- vs corporate-owned
- Net growth (yr3)
- +6.7%
- Net unit change last year
- 3-yr CAGR
- +7.9%
- Compounded over last 3 years
3-year detail · Item 20
- Opened (3yr)
- 24
- Closed (3yr)
- 7
- Terminated (3yr)
- 2
- Non-renewed (3yr)
- 5
- Transfers (3yr)
- 11
- Reacquired (3yr)
- 6
- Franchisor bought back
- Projected new
- 15
- Franchisor's next-year forecast
- Transfer rate
- 4.4%
- Owners selling to other franchisees
- Termination rate
- 2.8%
- Franchisor-initiated terminations
- Ceased ops
- 2.8%
- Units that stopped operating
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 contact records (FDD Item 20). Shows states with at least one current operator on file. Full state registration data (Item 12) will appear on a future FDD refresh.
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA 7(a) and 504 loan disclosures, public data unique to FranchiseVerdict.
- Total loans
- 52
- Loan volume
- $7.7M
- Median loan
- $125K
- 50th percentile
- Charge-off rate
- 5.8%
- rates vary by category · see methodology
Historical SBA 7(a) lending data, not predictive of future performance. How SBA charge-off rates are calculated
- Repayment rate (PIF)
- 88.9%
- 5-yr charge-off
- 0.0%
- Loans approved 2021+
- Active lenders
- 25
- Defaults
- 3
Explore lender portfolios on Bank Reports or regional data on State Reports.
Premium insight
SBA Lending Report
Deep-dive into CMIT Solutions's SBA lending history: lender network, geographic footprint, interest rates, and more.
SBA Lending Report
- Principal loss rate and NAICS industry benchmark
- 10 lenders with concentration factor
- Per-state charge-off rates across 15 states
- Startup risk premium and job creation velocity
- 18-year lending trend
Instant access. No subscription.
Risk analysis
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.
Litigation (Item 3)
0 case reference(s): 0 pending, 0 settled.
Largest disclosed settlement: $54,950
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Calvetti Ferguson
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Supplier relationship · Items 8 & 16
- Franchisor sells you products: No
- Must buy proprietary products: No
- Restricted to system-approved products: Yes
Score breakdown · what drove the 25 / 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
| Initial term | 10 years |
|---|---|
| Renewal term | 10 years |
| Allowed renewalsℹ | 1 |
| Territory type | Zip codes |
| Protected territory | Yes |
| Online sales rights | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Required |
| Non-compete (years)ℹ | 2 years |
| Right of first refusalℹ | Yes |
| Termination notice | 30 days |
| Termination groundsℹ | 1 |
| Curable defaultsℹ | 3 |
| Mandatory arbitration | Yes |
| Jury trial waiver | Yes |
| Governing law | Texas |
| Litigation count | 0 |
View Item 3 litigation summary
0 case reference(s): 0 pending, 0 settled.
Items 10, 11
Training & Operations
- Classroom training
- 66 hrs
- On-the-job training
- 0 hrs
- Training location
- On-site and off-site
- Franchisor financing
- Offered
- Item 10
- POS system
- Autotask and QuickBooks Online
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: Autotask and QuickBooks Online
Item 20 · call current owners
Franchisee Contacts
23 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
CMIT Solutions · FDD (2025) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a CMIT Solutions franchise?
The total investment to open a CMIT Solutions franchise ranges from $106K – $159K, with an initial franchise fee of $50K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do CMIT Solutions franchise owners earn?
According to Item 19 of the CMIT Solutions FDD, the average gross sales per unit is $487K. The median is $289K. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
What is CMIT Solutions's franchise failure rate?
Based on SBA 7(a) loan data, CMIT Solutions has a charge-off rate of 5.8% across 52 loans, meaning 5.8% of franchise loans were charged off. Charge-off rates are one proxy for franchise risk, though they do not capture all closures. This data comes from FOIA-sourced SBA lending records.
How many CMIT Solutions franchise locations are there?
As of their most recent FDD filing, CMIT Solutions has 278 total units in the United States, including 251 franchised units and 6 company-owned units. 24 new units were opened in the latest reporting year.
Is CMIT Solutions a good franchise to buy?
FranchiseVerdict rates CMIT Solutions as a A-grade franchise with a risk score of 25 out of 100, based on our analysis of investment costs, revenue data, SBA loan performance, and growth trends. Our rating is based solely on publicly available FDD and government data; we recommend speaking with current franchisees before making any investment decision. This is not investment advice.
Data sourced from public FDD filings and SBA 7(a) FOIA records. Not financial advice.
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Data extracted from public FDD filings and SBA 7(a) loan disclosures (FOIA). This information is provided for research purposes only and does not constitute financial, legal, or investment advice. Verify all figures with the franchisor's current Franchise Disclosure Document before making any investment decision.