AppFolio
s no contractual limitation on our right to access the information. You are also required to have a Costar subscription and an active subscription to Appfolio property manager and appfolio investment
From the filings
HQ-led decisions
CIG Franchise Systems
Real estateSoftware purchasing at CIG Franchise Systems is controlled by Managing Member Mike Sowers at the brand's Minnesota headquarters. The franchise already mandates a specific tech stack including Appfolio and CoStar, signaling a centralized procurement model. With only 3 total units, the addressable market for vendors is extremely small.
For software vendors selling into US franchise brands.
Live signals
Total units
3
2 franchised
Unit growth YoY
—
vs prior filing
AUV
$2.13M
Item 19, 2023
Royalty
1%
of gross sales
Ad fund
1.5%
national + local
Initial fee
$2
per unit
Investment range
$123K–$314K
all-in, Item 7
Procurement
Approved supplier
from the filing
Non-compete
2 years
from the filing
Item 19
Claims
from the filing
Ongoing fee load
What the operator pays every month
The recurring percentage of gross sales named in this filing, before rent, labour or any technology fee.
2.5%of gross sales (FY2023)
15% reference
Mandated & recommended tech
The systems vendors compete with
Systems named in Item 11 of this filing. None is recorded as mandated here, which is not the same as the filing mandating nothing. Read Item 11 before treating the category as open.
CoStar
ation that we may access will include sales, customer data, and reports. There is no contractual limitation on our right to access the information. You are also required to have a Costar subscription
Franchisor behaviours
What the franchisor requires
28 requirements the franchisor states in this filing, each in its own words; 3 explicit no's; 3 questions the text does not settle, which is not a no.
Accounting
Must the franchisee use an accounting or bookkeeping system designated or approved by the franchisor?
YesFranchise agreement
Franchisee shall use such customer data management, sales data management, administrative, bookkeeping, accounting, and control procedures and systems as CIG Franchise Systems may specify in the Manual or otherwise in writing.
Does the franchisor have direct or independent electronic access to the franchisee's financial, sales or customer records?
YesItem 11
You must give us independent access to the information that will be generated or stored in these systems.
Must the franchisee submit periodic financial statements (monthly, quarterly or annual) to the franchisor?
YesFranchise agreement
Franchisee shall provide such periodic financial reports as CIG Franchise Systems may require in the Manual or otherwise in writing, including: (i) a monthly profit and loss statement and balance sheet for the Business within 30 days after the end of each calendar month; (ii) an annual financial statement (including…
How the franchisor buys
Is the franchisor or an affiliate itself a supplier of required products, services or systems?
YesItem 8
We are currently a supplier of a good or service that you must purchase, although we reserve the right to be a supplier (or the sole supplier) of a good or service in the future.
Does the franchisor reserve the right to change designated suppliers or systems at any time?
YesFranchise agreement
CIG Franchise Systems may change any such requirement or change the status of any vendor.
How much revenue did the franchisor and its affiliates earn from franchisee purchases in the last fiscal year?
0Item 8
Our revenue from all required purchases and leases of products and services by franchisees in the prior fiscal year was $0.
Does the franchisor or an affiliate receive rebates, commissions or other revenue from designated or approved suppliers?
YesFranchise agreement
CIG Franchise Systems may receive rebates, payments or other consideration from vendors in connection with purchases by franchisees.
Item 8 gives this proportion in one of two shapes: separate percentages for establishing the business and for operating it, or one figure covering "establishing and operating" together. Where they are separate, answer with the operating percentage; where the passage gives only the combined figure, answer with that. What percentage of the franchisee's purchases must come from designated or approved suppliers?
50Item 8
We estimate that the required purchases and leases of goods and services to operate your business are 50% to 80% of your total purchases and leases of goods and services to operate your business.
Can a franchisee propose a new supplier for the franchisor's approval?
YesItem 8
If you want to use a supplier that is not on our list of approved suppliers, you must request our approval in writing.
Data and IT
Must the franchisee comply with PCI, data-security or cybersecurity standards set by the franchisor?
YesFranchise agreement
Franchisee must at all times comply with payment card industry data security standards (PCI-DSS).
Franchise management
Must the franchisee participate in a customer-satisfaction or net-promoter survey program?
YesFranchise agreement
Franchisee shall participate at its own expense in programs required from time to time by CIG Franchise Systems for obtaining customer evaluations, reviewing Franchisee’s compliance with the System, and/or managing customer complaints, which may include (but are not limited to) a customer feedback system, customer…
Does the franchisor conduct periodic inspections, audits or evaluations of the franchised business?
YesFranchise agreement
CIG Franchise Systems may enter the premises of the Business from time to time during normal business hours and conduct an inspection.
Can the franchisor change the operations manual and brand standards unilaterally?
YesFranchise agreement
CIG Franchise Systems may supplement, revise, or modify the Manual, and CIG Franchise Systems may change, add or delete System Standards at any time in its discretion.
Must the franchisor approve the franchisee's site or location before opening?
YesItem 11
Your site is subject to our approval.
Marketing
Is the franchisee prohibited from operating its own website or social media accounts, or required to use pages the franchisor provides?
YesFranchise agreement
Franchisee shall not conduct any marketing, advertising, or public relations activities (including in-store marketing materials, websites, online advertising, social media marketing or presence, and sponsorships) that have not been approved by CIG Franchise Systems.
Is a minimum grand opening advertising spend required?
YesFranchise agreement
Franchisee shall spend a minimum of 50% of the franchise fee per year on direct marketing.
Is the franchisee required to spend a minimum amount on local advertising or marketing, as a percentage of sales or a fixed amount?
YesFranchise agreement
Franchisee shall spend a minimum of 50% of the franchise fee per year on direct marketing.
Must the franchisee participate in a customer loyalty or rewards program?
YesFranchise agreement
Franchisee shall sell or otherwise issue gift cards, certificates, or other pre-paid systems, and participate in any customer loyalty programs, membership/subscription programs, or customer incentive programs, designated by CIG Franchise Systems, in the manner specified by CIG Franchise Systems in the Manual or…
Operations
Must the franchisee buy products from a designated distributor?
YesItem 8
You must purchase (or lease) the CRM software and hardware, and related software and hardware, that we specify from us.
Must equipment be purchased from designated or approved suppliers?
YesItem 8
You must purchase (or lease) the CRM software and hardware, and related software and hardware, that we specify from us.
Payments
Must the franchisee use a payment processor or merchant-services provider designated or approved by the franchisor?
YesFranchise agreement
Franchisee shall accept payment from customers in any form or manner designated by CIG Franchise Systems (which may include, for example, cash, specific credit and/or debit cards, gift cards, electronic fund transfer systems, and mobile payment systems).
Are royalties and other fees collected by automatic bank debit (ACH or electronic funds transfer) from the franchisee's account?
YesItem 6
We currently require you to pay royalty fees and other amounts due to us by pre- authorized bank draft through our accounting software.
Must the franchisee participate in a gift card program?
YesFranchise agreement
At its own expense, Franchisee shall sell or otherwise issue gift cards, certificates, or other pre-paid systems, and participate in any customer loyalty programs, membership/subscription programs, or customer incentive programs, designated by CIG Franchise Systems, in the manner specified by CIG Franchise Systems in…
People
Must employees wear uniforms specified by the franchisor?
YesFranchise agreement
Franchisee shall cause its personnel to comply with any dress attire, uniform, personal appearance and hygiene standards set forth in the Manual.
Point of sale
Does the franchisor have independent access to the data in the franchisee's POS or computer system?
YesItem 11
You must give us independent access to the information that will be generated or stored in these systems.
Sales and CRM
Must the franchisee use a CRM system designated or approved by the franchisor?
YesItem 8
You must purchase (or lease) the CRM software and hardware, and related software and hardware, that we specify from us.
Training
Can the franchisor charge the franchisee for additional, refresher or remedial training?
YesItem 11
Otherwise, we do not currently require additional training programs or refresher courses, but we have the right to do so.
Is attendance at an annual convention or conference mandatory for the franchisee?
YesFranchise agreement
The Principal Executive shall use reasonable efforts to attend all in-person meetings and remote meetings (such as telephone conference calls) that CIG Franchise Systems requires, including any national or regional brand conventions.
The filing answers no to 3 questions
- Does the franchisor charge a fee to evaluate a proposed supplier?Item 8
- Must the franchisee participate in a regional advertising cooperative when one exists?Item 6
- Does the franchisor require minimum staffing levels or specific roles?Item 11
The vendor opportunity at CIG Franchise Systems
CIG Franchise Systems presents a micro-cap opportunity for software vendors. The system consists of just 3 total units—2 franchised and 1 company-owned—making it one of the smallest franchise networks a vendor could target. The brand operates in the real estate sector and is headquartered in Minnesota. Average unit volume sits at $2,126,598, and the royalty rate is a remarkably low 1.0%. For a vendor, the total addressable market is exactly 3 locations, and any sale would likely need to be won at the headquarters level.
Who controls software purchasing
Software purchasing authority rests with a single individual. The 2023 FDD lists Mike Sowers as the Managing Member, and no other executives are on file. In a system of this size, the Managing Member typically acts as the sole decision-maker for all operational and technology expenditures. Vendors should direct all outreach to Mr. Sowers at the brand's Minnesota headquarters. There are no multi-unit operators mapped in our corpus, meaning every franchised location likely reports directly to the franchisor for procurement decisions.
Mandated and current tech stack
The technology landscape at CIG Franchise Systems is defined by a short list of mandated platforms. The FDD explicitly requires franchisees to use Appfolio Investment Manager, Appfolio Property Manager, CoStar, and CRETools. This is a real-estate-specific stack with no traditional point-of-sale system. For a software vendor, this means the operational workflow is already tightly prescribed. Any new tool would need to integrate with or displace one of these mandated systems, and the decision to do so would be made by the Managing Member.
Procurement, renewals, and timing
The FDD does not disclose a specific procurement policy in its Item 8, so the formal supplier approval process remains unknown. However, the existence of four mandated vendors strongly implies a closed, designated-supplier model. Renewal timing offers another potential entry point. The initial franchise term is 7 years, and renewal requires franchisees to update their business model to the franchisor's then-current standards. This clause could force a technology refresh, but with only 2 franchised locations and no disclosed renewal activity on file, vendors should not expect frequent or large-scale contract windows.
How to read the CIG Franchise Systems FDD
The 2023 Franchise Disclosure Document is the definitive source for understanding this brand's obligations and constraints. Key sections for a vendor include Item 11, which lists the mandated Appfolio, CoStar, and CRETools systems, and Item 17, which outlines the 7-year renewal process and the requirement to adopt current standards. The document also confirms the single-executive leadership structure under Mike Sowers. The full FDD is embedded below for your own review. For a ranked list of franchise targets that match your ideal customer profile, FranCloud can help you prioritize systems with genuine openings and accessible decision-makers.
Questions vendors ask
CIG Franchise Systems, answered from the filing
Mike Sowers, the Managing Member, is the sole executive listed in the FDD and the likely decision-maker for all technology procurement at the brand level.
The 2023 FDD mandates Appfolio Investment Manager, Appfolio Property Manager, CoStar, and CRETools. No traditional POS is specified for this real estate franchise.
There are 3 total units: 2 franchised and 1 company-owned. This represents one of the smallest addressable footprints in the FranCloud database.
The procurement model is not disclosed in the most recent FDD. The presence of mandated vendors, however, suggests a designated-supplier approach controlled by the franchisor.
With a 7-year initial term and renewal, windows are infrequent. A renewal requires updating to then-current standards, which could trigger a tech review, but no recent activity signals an imminent opening.
The 2023 FDD was filed with state franchise regulators. You can review the embedded document below for the full legal text, including Item 11 technology disclosures and Item 17 renewal conditions.
Source
Read the filing itself
Every number on this page traces back to this document. Read it in full, page by page. Buy the original PDF to download, search, and annotate it.
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FDD alert
Tell me when this brand refiles.
We’ll email you the moment CIG Franchise Systems files a new annual FDD, usually the freshest signal of a vendor change.
Operator footprint
CIG Franchise Systems’s FDD on file does not disclose a franchisee directory.
Related Real estate brands
Primary franchise filings · updated June 2026. Every figure is source-traceable and QA-checked.