Cartridge World

Financial commitments start with a $50,000 franchise fee and total investment of $75,150-$106,800 per Item 7, lower than many retail peers but stacked with ongoing fees: 8% royalty (or minimum $1,800 monthly), up to 4% brand fund, $800/month local marketing (capped at $1,600), plus $530/month for tech and software. No Item 19 disclosure leaves earnings opaque, forcing reliance on averages like SBA loans of $155,153 across 49 records with a 10.2% default rate—elevated versus service category norms around 5-7%, signaling potential cash flow strains in low-traffic locations. Fixed location model targets homes and SMBs, but competition from online giants like Amazon pressures margins without proven revenue benchmarks.

System health flags caution: 139 locations in 2022 dropped to 112 in 2023 (-19%), with 107 franchises and just 2 corporates; 7 terminations, 2 non-renewals, 1 transfer, but 9 projected new units suggest modest recovery hopes. Franchising since 2003 from NC headquarters, yet persistent contraction and no financial performance reps amplify risks for new entrants. Weigh this against category norms—business services often grow 5-10% annually—making Cartridge World a turnaround bet, not a growth machine; due diligence on local print demand is crucial before committing.