Risk Score
Pending analysis
Investment Range
$106,450 - $159,450
Franchise Fee
$24,975
Total US Locations
277
Business Summary
CMIT Solutions operates an information technology (IT) services business that provides a wide range of IT services and support. These services include professional and managed IT solutions, as well as products and services from alliance partners. CMIT Solutions primarily serves small and medium-sized businesses.
Corporate History
CMIT Solutions, LLC was originally incorporated as CMIT Operating, Inc., a Texas corporation, on December 11, 2009. The company changed its name to CMIT Solutions, Inc. on February 9, 2010, and later converted to a limited liability company, CMIT Solutions, LLC, on December 19, 2018. CMIT Solutions began offering franchises for its IT services businesses in February 2010. The company and its affiliates were acquired by Encore Acquisition Corp. on December 27, 2022.
Financial Overview
Investment Range
$106,450 - $159,450
Franchise Fee (Low)
$24,975
Franchise Fee (High)
$60,450
Royalty %
6%
Marketing %
2%
Equipment Costs (Low)
$2,000
Equipment Costs (High)
$3,000
Working Capital
$58,500
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
Encore TopCo, LLC, the parent company of CMIT Solutions, has consistently received an unqualified opinion on its consolidated financial statements from its independent auditors for the years ending December 27, 2022, December 31, 2023, and December 31, 2024. This indicates that the financial statements fairly represent the company's financial position, results of operations, and cash flows in all material respects. The auditors did not identify any going concern qualifications, which means they do not have substantial doubt about the company's ability to continue as a going concern. A prior period adjustment was noted in 2023 to correct an understatement in acquired assets and goodwill from a previous acquisition, but this correction did not modify the auditor's opinion on the restated financial statements. The company reported a net loss of $2,541,008 for the year ended December 31, 2024.
Financing Details
CMIT Solutions does not offer any direct or indirect financing to its franchisees. The company also does not guarantee any notes, leases, or other obligations of its franchisees.
Performance Metrics
Total US Locations
277
Franchised Units
271
Corporate Units
6
Franchising Since
2010
Legal & Compliance Analysis
Recent Litigation
No
Bankruptcy
No
Litigation Summary
CMIT Solutions has no litigation history to report. Item 3 of the Franchise Disclosure Document states that no litigation is required to be disclosed for the company.
Bankruptcy History
CMIT Solutions has no bankruptcy history to report. Item 4 of the Franchise Disclosure Document states that no bankruptcy is required to be disclosed for the company or its key personnel.
Agreement Terms
Initial Term
10 years
Renewal Term
10 years
Renewal Conditions
To renew their franchise, CMIT Solutions franchisees must provide written notice at least 180 days before the initial term expires. They must be in substantial compliance with the franchise agreement throughout the term and in full compliance at the time of renewal, including all System Standards. Franchisees must not owe any outstanding debts to suppliers, vendors, government entities, or other third parties, and must not be under investigation for illegal activity by any government entity. They need to either maintain possession of their current business premises for the renewal term or secure and develop new, approved premises. All equipment, supplies, materials, and signage must meet current specifications and standards for new franchisees, or the franchisee must replace or refurbish items to comply. Finally, franchisees must execute a renewal franchise agreement (which may have materially different terms and fees), sign a general release of claims against the franchisor and its affiliates, comply with current mandatory training and re-certification requirements for renewing franchisees, and pay a renewal fee of $5,000.
Training & Support Program
Franchisor Assistance
CMIT Solutions provides various forms of assistance to its franchisees. Before opening, the franchisor identifies the franchisee's territory and allows them to establish a business office, which can be home-based or a leased space. CMIT Solutions provides standards and specifications for operating assets and the required Technology System, and lends the confidential Operations Manual. Franchisees also receive an initial Leads Contact List and participate in a comprehensive Training Program for up to three people, covering business setup, core systems, products, solutions, marketing, sales, and service delivery. After opening, CMIT Solutions administers a Marketing Development Fund for brand-related programs and materials. The franchisor updates the Operations Manual with System Standards and coordinates mandatory annual regional or national conventions, as well as other educational programs. Ongoing support also includes weekly check-ins, a Franchise Success Program, and Mastermind Groups to foster education and support. The franchisor approves social media postings and manages the CMIT Website for marketing.
Initial Training Hours
66
Training Location
Hybrid: Virtual and in-person at Austin, Texas or other designated locations
Ongoing Support
After opening, CMIT Solutions provides ongoing support through several channels. It administers a Marketing Development Fund for continuous brand promotion and advertising. Franchisees receive updates to the Operations Manual to reflect changes in the System and product/service offerings. The franchisor coordinates and requires attendance at annual regional and/or national conventions, along with other education and training programs. Continuous support is also available through weekly check-ins, a dedicated Franchise Success Program, and participation in CMIT Mastermind Groups, which cover various topics like marketing, cybersecurity, sales, service delivery, deal desk management, system-wide education, and best practices.
Franchise Requirements
Ideal Candidate Profile
CMIT Solutions seeks candidates who possess, at a minimum, general computer and internet knowledge and skills, coupled with a willingness to learn about the IT services and support industry. While specific IT or technology experience, education, or training is not required, such a background may be beneficial for sales efforts, as well as for hiring and managing computer technicians and other skilled personnel. For multi-unit opportunities, CMIT Solutions evaluates candidates based on their business acumen, experience, and financial capacity.
Industry Experience Required
No
Management Experience Required
No
Sales Experience Required
No
Technical Skills Required
Yes
Operational Details
Location Type
Hybrid
Owner Participation
Full-Time
Territory Type
Exclusive
Territory Size Requirements
CMIT Solutions defines its territories using U.S. Postal Service zip codes, and may also use criteria like counties, maps, rivers, or roads to establish boundaries. Each territory is designed to contain between 3,000 and 4,500 eligible small business establishments (SBEs), with a typical territory including approximately 3,500 SBEs.
Staffing Notes
CMIT Solutions requires franchisees to hire employees to assist in providing services within their territory. Within 90 days of operation, the franchisee must secure the services of at least one individual who completes any required training and certification to become a technician. All new employees hired by the franchisee must attend and successfully complete all required training programs and receive necessary certifications. The franchisor may charge a reasonable certification fee for this training. Additionally, if the franchisee is an entity, an approved Operating Principal must devote all of their business time and attention to the personal management and operation of the business.