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Cartridge World

Cartridge World North America, LLC

Company Information

3917 Mercy DriveMcHenry, IL 60050

[email protected]

Cartridge World North America, LLC is the franchisor of the Cartridge World System in the United States. CWNA was formed as a limited liability company in the State of Nevada in June 2002. In 2011, CWNA restructured its operations by closing its warehouse facilities and moving its headquarters from Emeryville, California to Spring Grove, Illinois to eliminate certain infrastructure costs. Its principal place of business is now located at 3106 North US Highway 12, Suite A, Spring Grove, Illinois 66081, which serves as the North America headquarters for Cartridge World operations. Cartridge World North America, LLC is a wholly-owned subsidiary of Cartridge World International, Inc. a Delaware corporation formed in July 2007.

We offer, and award to applicants, the right to operate franchised businesses using Cartridge World's Marks and System for the establishment and operation of Unit Franchises. Please see Exhibit A-1 to this Disclosure Document for a copy of the current form of Unit Franchise Agreement. Capitalized terms that are not defined in this Disclosure Document have the meanings that are given in the Unit Franchise Agreement. The System is characterized by certain trademarks and logos, operating systems, training and marketing concepts, the Guidance we provide, distinctive color schemes and other elements, and includes methods for marketing and operating businesses that offer home and office printing solutions. The solutions offered by Unit Franchises include individual and bundled printer inkjet cartridges, laser cartridges, printers, printer service and repair, and such other products and services as we may specify (the “Products and Services”) from street fronts, malls and other fixed retail and office business locations (“Premises”), and also by the sale and delivery of the Products and Services on a wholesale basis directly to the business locations of their customers and clients. Unit Franchisees market their Unit Franchises as providing “Trusted Business Solutions” to customers on a business-to-business (“B2B”) and a business- to-customer (“B2C”) basis. CWNA can also employ and/or allow others to use the System in other venues, such as kiosks in retail outlets or other distribution opportunities, as well as with national account (“Special Account”) programs, with CWNA's prior approval (see Item 12).

2 Ongoing Lawsuits

FDD Effective Date Action

Franchise Rating

Franchimp Summary Rating

8/10

Earning Transparency

7/10

Investment Accessibility

8/10

Summary of potential earnings

Average Revenue Per Unit

$222,476 / unit

Average Revenue During 2020
Franchise Type:

Printing

$222,476

Industry Low

$783,680

Industry High

Franchise System Development

Year Units at Start of Year Units Opened Units Terminated Non-Renewals Re-Acquired by Franchisor Ceased Operations Units at End of Year

Distribution of Cartridge World Franchisee

Employee Contact Database

# Name Position Email Phone

Summary of Investment Costs

Upfront Franchise Fees

Minimum: $50,500 Maximum: $51,000

Upfront franchise fees are the one-time payments required to secure rights to operate under an established brand, typically ranging from $20,000 to $100,000+ depending on brand value.

These fees grant access to proprietary business systems, training programs, intellectual property rights, and often territorial exclusivity—essentially purchasing the blueprint for a proven business model.

While separate from ongoing royalties, investors should evaluate these fees against expected returns, comparing fee-to-earnings ratios across opportunities and assessing how effectively franchisors reinvest these funds into system improvements.

Total Investment Costs

Minimum: $75,150 Maximum: $106,800

Ongoing Fees

Ongoing franchise fees, typically structured as royalties ranging from 4-8% of gross sales, represent the continuous payments franchisees make to maintain brand affiliation and support services.

These recurring fees fund the franchisor's operational assistance, marketing initiatives, technology updates, and continued brand development—creating a partnership where the franchisor's revenue grows alongside the franchisee's success. In addition to royalties, franchisees often contribute to national advertising funds (usually 1-3% of sales) and may incur technology fees, supply chain markups, or renewal fees depending on the franchise agreement.

Investors should carefully analyze these ongoing costs within their financial projections, as they directly impact profit margins and cash flow throughout the entire franchise relationship.

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