Franchising: Breaking Down Barriers To The MSP Business

In IT, there is nothing like the lure of recurring revenue.

MSPs have traditionally entered the business after a few years, or sometimes decades, of selling and delivering hardware and software, while others have funneled their experience in IT services from years of working at service providers or vendors into their own businesses.

However, some entrepreneurs may jump straight to forming their own MSPs via a franchise. One franchise operation focused exclusively on helping entrepreneurs build an MSP practice is Austin, Texas-based CMIT Solutions which, according to CEO Roger Lewis, has found the formula to help others become MSPs.

[Related: The 20’s MSP M&A Spree: Six In A Month, Dozens More To Come]

CMIT provides all the support and tools, along with a partner network that includes vendors such as Microsoft, Dell, Lexmark, Intuit, Barracuda and Kaseya-Datto, that are needed to get started as an MSP, Lewis told CRN.

Potential MSPs, Lewis said, “come into our system, and we launch them. And we spend a tremendous amount of time teaching them how to market and sell and deliver MSP services. There’s ongoing training. We hook them up with partners and solutions and the IT stack, and really educate them on how to be successful in the IT space.”

CMIT already has over 250 territories covered in the U.S. by its MSPs and is continuing to grow. The company is also franchising its first Canadian MSP as part of a pilot project to expand to that country. And the company is growing. Its franchisewide revenue this year hit $100 million for the first time, Lewis said. The company was acquired by Craftsmen Capital in December 2018 and has not taken outside investment since.

Here is what Lewis had to say about CMIT and the franchising side of the MSP business.