FDD Talk 2013: Responses to a Survey of CMIT Solutions Franchisees (2013 FDD)

Highlights of CMIT Solutions’ Item 19 Financial Performance Representations (2013 FDD) – Part 1

• As a franchisee, you will operate an information technology (“IT”) services business under the name “CMIT Solutions” offering a wide variety of IT services, including professional and managed services, along with alliance partner product and service offerings primarily to small businesses.

• The total investment necessary to begin operation of a CMIT Solutions franchise is $129,200 to $171,450. This includes $49,950 to approximately $59,950 that must be paid to the franchisor or its affiliate.

• The following survey of CMIT franchisees was conducted during February and March 2012. In the survey only 10 questions were asked. The survey is a measure of 10, and only 10, aspects of the historic financial performance of those existing franchisees who responded to the survey. (Ambrosio’s note: I count 11 questions, not just 10.)

• The “Response Average” column in the table below shows averages of the individual responses received to each survey question.

• In the two columns labeled “Highest Response” and “Lowest Response” the franchisor shows the highest and lowest responses received to each question.

• The franchisor lists the number of responses received in “Number Responding to Question,” and in the final column under “% Who Exceeded the Average,” the franchisor shows the percentage of respondents who exceeded the average response to each question.

• The figures in this table represent responses to a survey of CMIT Solutions franchisees who had been in operation for one-and-a-half years. At the time of the survey, there were a total of 123 franchisees in the CMIT System operating 134 territories, and, of these, 63 franchisees, or 51%, had been in operation for one-and-a-half years or more.

• The number of responses varied for each question asked, as not all CMIT Solutions franchisees surveyed offer all of the products or services in the survey.

• These figures are based on responses received voluntarily from 63 CMIT Solutions franchisees. Responding franchisees represent 51% of all CMIT Solutions franchisees; and 100% of franchisees who had been in operation for one-and-a-half years or more.

• The franchisor has not audited this information to confirm that it is correct, and has relied on the information provided directly by responding franchisees.

• There are no material differences between the businesses operated by the respondents to this survey and the franchise offering described in this franchise disclosure document.

Survey Question #1:  How many different business establishments did you derive revenue from in 2011?