Earnings Claims of Top Franchises Revealed

Earnings Claims of Top Franchises Revealed

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

by Franchise Chatter on December 21, 2013

in Franchise Earnings, Information Technology Franchise

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Highlights of CMIT Solutions’ Item 19 Financial Performance Representations (2013 FDD) – Part 2

  • The difference between the amount charged for the specific services cited in the survey and the amount paid to employee technicians for the services illustrates a narrow measure of net revenue and does not reflect other expenses that may be directly or indirectly paid from that revenue, such as office and equipment overhead, taxes, franchise royalties, and employee wages and benefits.
  • The rates charged to clients and paid to employee technicians in your market will be affected by a number of factors, including the strength of the market in your area for computer services, employee payment rate levels, and the existence of competition for computer services and qualified computer technicians in your market.
  • These figures do not reflect the cost of sales, operating expenses, or other costs or expenses that must be deducted from the gross revenue or gross sales figures to obtain your net income or profit. You should conduct an independent investigation of the costs and expenses you will incur in operating your CMIT Solutions business. Franchisees or former franchisees, listed in the franchise disclosure document, may be one source of this information.
  • Some franchisees have earned and charged these amounts. Your individual results may differ. There is no assurance that you will earn or charge as much.

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Survey Question #6:  How much per month do you charge a client with 30 PCs and 3 servers for Marathon Performance?

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