FranchiseVerdict
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FV-00606·MODERATEExcellent86FDD 2022

Commercial Investors Group

Real EstateFranchising since 2021Website
Investment
$123K – $314K
84th pct Real Estate
Avg revenue
$5.2M
29th pct Real Estate
Royalty
1.0%
1st pct Real Estate
Units
3
6th pct Real Estate
SBA default

Bottom line

  • Total investment $123K – $314K including a $50K franchise fee, 1.0% ongoing royalty.
  • Average unit revenue of $5.2M/year. Estimated payback in 0.1 years.
  • Rated MODERATE with a risk score of 64/100.

Item 1 · who you're contracting with

The Franchisor

Legal entity
CIG Franchise Systems, LLC
Incorporated in
Wyoming
HQ
2738 Winnetka Avenue N, #201, New Hope, MN 55427
Auditor
Naper CPA Group
Audited financials

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 Commercial Investors Group unit return on the cash you put in?

Revenue · per unit, per year
$
FDD Item 19 reports $5,196,611
Franchisor take · royalty + ad fund
Royaltytyp 68%
%
Ad fundtyp 35%
%
Operating costs · category default: generic
COGS
%
Labor
%
Rent / occupancy
%
Other operating
%
Total invested capital · what you actually put in
Initial investment
$
FDD Item 7: $123K–$314K
Working capital
$
FDD reports $25K–$75K

Unlevered ROIC · per unit

397%

Above typical band (30–60%)

0%30–60% Yale band80%
ROIC above 100% usually means the revenue figure is a system-wide aggregate or top-cohort number rather than a single-unit average. Verify the "Revenue · per unit" field against the brand's FDD Item 19 detail tables before relying on this output.

Store EBITDA · annual
$1.1M
EBITDA margin
20.5%
Total invested
$268K
Payback
3 mo
Unit-level only. A multi-unit portfolio gives up roughly 5–15% of this to shared services (corporate G&A) before reaching the ~10-unit break-even Yale describes.

Levered LBO scenario · Yale Crease Capital framing

What would 25 Commercial Investors Group units return on equity?

Edit assumptions

Equity IRR · 5-yr

22.4%

2.75× MOIC

Year-1 DSCR

4.05×

EBITDA ÷ debt service

Equity required

$44.1M

on $70.2M purchase

Total debt

$26.0M

SBA $5.0M + senior + seller note

SBA 7(a) request ($35.1M) exceeds the $5M program cap. Excess capped automatically; backfill via conventional or equity.

Overview

About

Commercial Investors Group franchisees appear to operate in commercial real estate investment or brokerage, likely sourcing, analyzing, and facilitating purchase/sale transactions for commercial properties. The revenue structure tied to transaction values and assignment fees suggests franchisees generate income through deal facilitation and ongoing revenue sharing from property transactions within their protected territory.

CEO
Mike Sowers
Founded
2021
FDD year
2022
States available
2

Item 7 · what it costs

The Vitals

Total investment
$123K – $314K
All-in to open one unit
Liquid capital
$25K – $75K
Cash you must have on hand
Franchise fee
$50K
Royalty
1.0%
Variable · typical 6–8%
Ad fund
1.5%
typical 3–5%
Total fee load
2.5%
vs 9–13% typical
Payback period
0.1 yrs
From v3 / Item 19

Item 19

Financial Performance

Avg gross sales
$5.2M
Per unit, per year
Median gross sales
Item 19 type
Actual
Sample size
1 units
vs category median 41 · small
Transparency
6 / 5
vs category median 0 / 5 · above
Revenue rank29th
vs Real Estate peers
Investment cost rank84th
Lower investment ranks lower (better)
Royalty rate rank1th
Lower royalty = lower percentile (better)
Unit count rank6th
vs Real Estate peers
Risk score rank57th
Lower risk = lower percentile (better)

Item 20 · unit dynamics

The Growth Chart

Total units
3
Opened
2
Last reporting year
Closed
0
Turnover rate
0.0%
Company-owned
1
Corporate units in the system
% franchised
67%
vs corporate-owned
2020
2+2
Franchised units
2021
0
Franchised units
2022
0
Franchised units

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).

AK
ME
VT
NH
MA
RI
CT
NY
NJ
PA
DE
MD
DC
WA
OR
CA
NV
ID
MT
WY
UT
CO
AZ
NM
ND
SD
NE
KS
OK
TX
MN
IA
MO
AR
LA
WI
IL
MS
TN
MI
IN
KY
AL
OH
WV
GA
VA
NC
SC
FL
HI
Registered · 15 states
Not registered

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.

No SBA loan data available for this brand.

FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17

Risk & Legal

64
Risk · 0-100
MODERATE64 / 100

A micro-scale franchise system with unverified financials, questionable franchisor viability despite franchisee profitability claims, and complex royalty mechanics that warrant intensive due diligence before investment.

Score breakdown · what drove the 64 / 100 rating

  1. 01MEDOnly 3 units in system with unknown growth trajectory indicates extremely limited track record and scale
  2. 02HIGHGoing Concern status is FALSE — suggests franchisor may be unprofitable or financially unstable despite high franchisee revenues
  3. 03MINORComplex multi-tiered royalty structure (1% transaction + 15% assignment + 1% gross revenue) creates opaque fee obligations and potential for disputes
  4. 04MINORNo franchise fee ($0) may indicate franchisor relies heavily on transaction-based royalties, creating misaligned incentives
  5. 05MINORMassive gap between claimed franchisee net income ($3.76M) and franchisor viability raises questions about business model sustainability and data verification
  6. 06MINORProtected territory with only 3 units suggests either early-stage concept or failed expansion strategy

Severity inferred from the FDD text · not a regulatory classification

FDD Items 5, 6, 12, 17 · continued from Risk & Legal

Contract & Territory Detail

Territory
Counties or Zip Codes
Protected territory
Yes
Initial term
7 years
Renewal term
7 years
Online sales rights
Restricted
Franchisor can compete
Yes
Hire a manager?
Allowed
Litigation count
0
Right of first refusal
Yes
Franchisor can buy back on resale
Mandatory arbitration
Yes
Jury trial waiver
Yes
Non-compete
2 yrs
Post-termination restriction
Owner-operator
Optional
Governing law
Wyoming

Item 11

Training & Operations

Classroom training
42 hrs
On-the-job training
0 hrs
POS system
CRETools
Operating tech stack

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

15 numbers

Locked
(651) 296-••••
MN
(605) 773-••••
SD
(317) 232-••••
IN

One-time purchase · CSV download · Validation questions included

FDD download

Commercial Investors Group · FDD (2022) PDF

Single-page checkout · instant download · CSV export of contacts available separately above