Risk Score
Pending analysis
Investment Range
$13,682 - $117,321
Franchise Fee
$6,750
Total US Locations
30
Business Summary
yorCMO offers a fractional marketing service that allows businesses to engage a shared Chief Marketing Officer (CMO) to develop and implement marketing strategies. yorCMO provides three distinct franchise models: the Solo yorCMO, where the operator acts as the sole CMO; the Firm yorCMO, which permits the operator to act as a CMO, hire multiple associate CMOs, and potentially other yorCMO franchisees, also earning commissions for new yorCMO franchisees they recruit; and the Lite yorCMO, where the operator acts as a CMO. The business can be managed as a home-based operation.
Corporate History
yorCMO Franchising, LLC was established on December 22, 2020, as a Nebraska limited liability company, and it began offering franchises on February 9, 2021. Prior to the development of the franchise system, an affiliate named yorCMO, LLC, which was formed on October 26, 2017, granted licenses to individuals to operate under the 'yorCMO' mark as independent contractors. yorCMO Franchising, LLC plans to convert these existing independent contractors into yorCMO franchisees under different terms than those currently offered.
Financial Overview
Investment Range
$13,682 - $117,321
Franchise Fee (Low)
$6,750
Franchise Fee (High)
$67,000
Royalty %
5%
Equipment Costs (Low)
$1,050
Equipment Costs (High)
$4,200
Working Capital
$5,191
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
The financial condition of yorCMO Franchising, LLC, as reflected in its financial statements, raises questions about the franchisor's financial ability to provide services and support to franchisees. yorCMO Franchising, LLC reported a significant accumulated deficit in members' equity, with negative balances of $535,431 as of December 31, 2024, and $248,809 as of December 31, 2023. Additionally, its current liabilities substantially exceeded its current assets in both years, showing $505,499 in current liabilities versus $56,585 in current assets for 2024, and $343,984 in current liabilities versus $148,942 in current assets for 2023.
Financing Details
yorCMO Franchising, LLC does not offer any direct or indirect financing to its franchisees. It also does not guarantee any franchisee's notes, leases, or other obligations.
Performance Metrics
Total US Locations
30
Franchised Units
29
Corporate Units
1
Franchising Since
2021
Legal & Compliance Analysis
Recent Litigation
No
Bankruptcy
No
Litigation Count
2
Litigation Summary
yorCMO Franchising, LLC has disclosed two litigation cases. The first involved a lawsuit filed in April 2008 against yorCMO Franchising, LLC's Co-Founder, Joe and Amy Frost, for breach of contract and fraud related to a residence construction. This matter was settled in July 2018, with the Frosts contributing $7,500 to the settlement, and was dismissed in August 2018. The second case, in 2021, involved an administrative action by the Commonwealth of Virginia's State Corporation Commission against yorCMO Franchising, LLC. The Commission alleged that yorCMO Franchising, LLC violated Virginia's Retail Franchising Act by offering and selling three franchises while unregistered. yorCMO Franchising, LLC acknowledged the issue, offered rescission to the affected franchisees, and paid $6,000 in monetary penalties and $750 for investigation costs, without admitting or denying violations. This matter was settled in November 2021.
Bankruptcy History
yorCMO Franchising, LLC has no bankruptcy history to disclose.
Agreement Terms
Initial Term
5 years
Renewal Term
3 years
Renewal Conditions
To renew their franchise, yorCMO franchisees must be in compliance with all terms of their Franchise Agreement and provide yorCMO Franchising, LLC with 180 days prior written notice of their intent to renew. They may be required to sign yorCMO Franchising, LLC's then-current Franchise Agreement and any related agreements for the renewal term, which might contain materially different terms. Franchisees must also sign a general release in favor of yorCMO Franchising, LLC, pay a renewal fee, and fulfill any other renewal requirements in the Franchise Agreement. All owners and their spouses must also comply with their agreements and personally guarantee the terms of the renewal Franchise Agreement.
Training & Support Program
Franchisor Assistance
yorCMO Franchising, LLC provides franchisees with both pre-opening and post-opening assistance. Before opening, yorCMO Franchising, LLC grants the right to operate the business, provides an initial training program for the Primary CMO (which can be conducted virtually or at its facility in Omaha, Nebraska), grants access to a confidential Operations Manual, and provides a list of approved suppliers and distributors. It also offers site selection guidelines for the Administrative Office and lists the franchisee's business on its website. After opening, yorCMO Franchising, LLC establishes and communicates operating standards, procedures, and System requirements, including updates to Approved Services and Products, System Supplies, and marketing standards. It approves or disapproves marketing media, provides names of approved vendors, and may coordinate an annual System conference. Supplemental on-site or virtual training is also available upon request or if required by yorCMO Franchising, LLC (for a fee), and yorCMO Franchising, LLC administers a Sales and Marketing Fund.
Initial Training Hours
24
Training Location
Omaha, Nebraska Area and/or Virtual
Ongoing Support
After opening, yorCMO Franchising, LLC provides continuing support to franchisees through various channels. This includes establishing and communicating updated operating standards, procedures, and System requirements for the business, covering Approved Services and Products, System Supplies, and marketing/promotion standards, which are detailed in the Operations Manual. yorCMO Franchising, LLC also designates and updates lists of approved vendors and suppliers. It may coordinate an annual System conference for networking and education, and offers or requires supplemental on-site or virtual training for a fee if the franchisee requests it or if performance standards are not met. Additionally, yorCMO Franchising, LLC administers and manages System-wide marketing funds.
Franchise Requirements
Ideal Candidate Profile
yorCMO Franchising seeks individuals to act as Chief Marketing Officers (CMOs) or to manage a team of CMOs. Ideal candidates for yorCMO must be personally responsible for the daily management and supervision of their franchised business. They must be approved by yorCMO Franchising, successfully complete the initial training program, and obtain all necessary licenses and permits. The Primary CMO is also required to possess an equity interest in the franchised business.
Industry Experience Required
No
Management Experience Required
No
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
Hybrid
Owner Participation
Hands-On
Territory Type
Non-Exclusive
Territory Size Requirements
yorCMO Franchising, LLC does not grant any territory rights or minimum territory to its franchisees. Franchisees may face competition from other yorCMO franchisees, company-owned practices, or other distribution channels.
Staffing Notes
yorCMO Franchising, LLC does not provide assistance with hiring or training a franchisee's employees. Franchisees are solely responsible for the direct management and supervision of their employees. They must ensure that all System Supplies and Approved Services and Products are prepared, maintained, and delivered in accordance with yorCMO Franchising, LLC's System standards and Operations Manuals.