CyberGlobalA conversation about the cybersecurity business.

Welcome to Franchise Roundtable. Imagine walking into a boardroom to sell enterprise-grade cybersecurity to a massive local business, but- But you don't even know how to write a single line of code. Exactly. It sounds like a total paradox, right? Yeah, it really does.

But today, we're taking a deep dive into a business model that makes exactly that scenario possible. We're looking at CyberGlobal. It's a franchise opportunity that's built around a question. So many business owners are desperately trying to answer right now, which is- is how do I find the right help to protect my company's data and digital systems?

And what makes this deep dive so fascinating is how this model elegantly splits a highly complex industry right down the middle. It brings together local human customer relationships on one side and then highly specialized technical services on the other. Okay, so bringing that down a bit.

Yeah, so you have the franchise owner who sells the cybersecurity products and services and then you have approved specialized providers who actually perform the audits and technology solutions. Which is such an interesting split. It is. And we're going to be unpacking all of this using the CyberGlobal Franchise Disclosure Document, or FDD, dated April 2nd, 2025.

Right. And, you know, if you're listening to this and thinking, hey, I am fantastic at sales and relationship building, but I would be absolutely terrified of messing up a company's firewall. Right, the nightmare scenario. Exactly. That is exactly the anxiety this model seems built to solve.

So, the ownership store here essentially begins with understanding a business customer's needs, and then connecting that customer with the service, rather than you sitting in a dark room typing green code onto a black screen. That is precisely the core insight here. I mean, you're not really buying a traditional hands-on technical business.

Right. You're essentially building a business to business, or B2B, sales and relationship agency. Got it. But the disclosure document describes a business that, you know, sells cybersecurity services, uses an approved supplier network to actually execute those services, and trains its owners extensively in sales, client interactions, and account management.

Okay. So our mission today is basically to break down what you would actually sell, how you develop those crucial human relationships, and how the actual technical work fits into the overall operational puzzle. Exactly. Exactly. Let's start with the person on the other side of that transaction then.

When a local business owner sits down with a CyberGlobal franchisee, what is that customer actually looking for? Because I mean, cybersecurity is such a massive intimidating buzzword. Oh, absolutely. Well, the disclosure describes these customers as businesses looking for comprehensive cybersecurity solutions to help protect their data and networks.

works. Okay. But to put it in really practical terms, the product here is a service with a very clear urgent purpose, which is helping a company address the security of its digital assets and infrastructure. Right, because nobody wants a data breach. Nobody. The CyberGlobal business owner sells authorized products and services that fit within the franchise system to meet those very practical needs.

They're basically looking for peace of mind, compliance, and protection from catastrophic data loss. You know, from a prospective buyer's perspective, that is a wildly appealing factor. For sure. Because it gives the owner something incredibly specific and vital to talk about with another business owner.

The conversation is anchored in the client's actual company needs. They're proprietary data. They're employee networks. Exactly. They're ultimate security rather than just rattling off a list of dense alienating technical jargon that nobody understands anyway. Right. Exactly. Exactly. And what's really interesting is how the franchise's training supports exactly that kind of conversation.

How so? Well, the training focuses heavily on understanding cybersecurity services, sure, but also setting clear expectations with new clients, managing ongoing relationships, and account management. So it's very people-focused, highly people-focused. Those are incredibly useful building blocks for a customer-facing business.

You're learning the offering and the way the system expects you to communicate about it, and then you're going out and developing your own business relationships around that framework. Okay, so I'm building this commercial relationship engine. I'm shaking hands. I'm identifying vulnerabilities with the client.

But that leads right into the most obvious logistical question. Who actually does the work? Right. If I am the one managing the relationship, who is actually looking at the servers? Who performs the tech audits and services? That is the vital distinction to make, and it's honestly the engine of this whole model.

The disclosure clearly identifies approved providers who do that heavy technical lifting. Okay. Specifically, there's an affiliate called CT Defense, and they supply the technology solutions. CT Defense, got it? And then another affiliate called CGA Audit supplies the audit services. Okay, that makes sense.

And there's also a third affiliate, CyberGlobal SRL, which actually selects and vets the suppliers of those technology solutions and audit services. Wait, so as the franchisee, I'm essentially functioning like a general contractor building a house. Oh, that's a good way to look at it.

Yeah, like I shake hands with a homeowner, I figure out exactly what kind of house they want. I manage their expectations and I sign the deal, but I'm not the one swinging in the hammer or, you know, wiring the electricity. You're not pulling the copper wire, no.

Right. I bring in the approved plumbers and electricians, which in this case would be CT Defense and CGA audit it to actually build the thing. That is a perfect analogy. That definitely clarifies the roles and explains why a sales strategy, outreach, and account management feature so prominently in the owner training rather than say coding boot camps.

Makes total sense. The franchisee sells the service through the authorized system. They handle the local outreach and manage the local business operations. Meanwhile, the approved provider performs the contracted audit or technology work. But wait, if I'm not doing the tech work and these approved providers are, how does the money actually flow?

Because I have to be paying the people who are swinging the hammers, right? You absolutely do. The disclosure notes, there is a service fee paid for work performed by those providers or other approved third-party providers. Okay. That means the services have a delivery cost.

So your customer sales revenue and your provider delivery costs both belong in your overall business equation. Gotcha. Yeah. You know, if I were looking at this as a serious investment, I would really want to see that whole process with management from that very first coffee with the client all the way through to the service delivery and the six-month follow-up.

And that is a highly recommended discovery question for you to take to the franchise, or? Yeah. Oh, absolutely. Ask the company to walk you through an actual approved service. Ask to see exactly who handles each stage, how the franchisee and provider communicate, And, you know, how those delivery costs are applied.

It makes that whole division of responsibilities completely concrete. Let's shift gears slightly from the high level structure to the actual day-to-day reality. If I buy this, what does the disclosures say about running the business on a daily basis? Like, am I chained to a desk?

Well, the FDD requires what they call a responsible owner. A responsible owner. Right. This person has the authority and responsibility for day-to-day operations and communicates indicates directly with a franchisor. Now, if you are an individual franchisee, you feel that role personally.

Makes sense. But if the franchise is owned through a legal entity like an LLC, its responsible owner must hold at least a 25% equity interest. Okay, but does the owner have to be the one operating it directly every single day? Like, what if I want to be an investor who oversees the business, but isn't necessarily making the cold calls?

You actually have options there. The business can be directly operated by the owner or it can be run with a franchisor-approved franchise manager. Oh, interesting. Yeah, but it is very important to note that both the responsible owner and any franchise manager must complete the required training.

Okay. So that gives someone two distinct operating arrangements to explore during discovery, right? Like taking the direct operating role yourself or exploring the approved manager arrangement while still retaining the responsible owner's responsibilities. Exactly. And if we connect this to the bigger picture, it's crucial to understand that no matter which route you take, the franchisee always remains responsible for hiring, directing, scheduling, supervising, and training their own employees and independent contractors.

So you can't just pass the buck? No, not at all. Initial franchise training prepares the required participants for the system, but it absolutely does not transfer your employer responsibilities back to the franchise, or you are the boss of your entity. Right. To really illustrate this relationship and delivery model, let's picture one simple hypothetical client conversation.

Okay, let's hear it. Let's say a local logistics company wants to understand the cybersecurity services available for their business. The CyberGlobal owner goes in, listens to their concerns, discusses the authorized offerings, and then organizes the next conversation with the approved provider about the actual work involved.

And to complete that hypothetical scene, if that logistics customer chooses a service and moves forward, the approved provider then steps in and performs the contracted work. Okay. But the franchisee doesn't just step away and wash their hands of it, right? They continue to manage the business relationship within the system, ensuring the client is happy and looking for future needs.

Which is key for retention. Exactly. And we should be clear, this is strictly a hypothetical illustration, not a reported transaction, but it really helps show what someone who enjoys client development could find appealing. Yeah, totally. You learn a specialized offering, you discuss it with business customers and you stay heavily involved in the relationship while the approved provider executes the technical side.

Now, where is all of this happening? Where does the owner actually operate from? Are we talking about leasing a sleek corporate office downtown? Actually, no. The disclosure says most CyberGlobal businesses will be operated from franchisees residences. Wait, really? Yeah. From home. Yeah.

Now, renting an executive suite or other commercial space is an option if you prefer that separation, but a separate office is not required. Oh, wow. For someone interested in building a professional B2B services business from a home base, that is a very concrete part of this format.

Of course, the owner still has the exact same customer development and operating responsibilities regardless of where their desk sits. Here is where it gets really interesting for me. If you're operating from home and your entire focus is on relationship building and sales, you need to know exactly what you are doing and how to organize a pipeline.

blind. Oh, absolutely. So what is the initial training designed to cover to get you ready for that? The April 2025 disclosure describes an approximately five day fully virtual initial program. Fully virtual. Okay. Yes. And this training is included for up to four people who attend the same initial program together.

Because it is fully virtual, there are no travel or lodging expenses to worry about, which is a nice perk. Yeah, that saves a lot of money up front. Exactly. And the curriculum itself is highly comprehensive. It covers understanding cybersecurity services, sales strategy, setting expectations with new clients, relationship management, social media setup, outreach, business management, account management, and human resources.

Wow. It's essentially a masterclass in running a modern sales organization. Pretty much. Because those subjects follow the exact hypothetical customer relationship we just described, you understand the offering, you start conversations, you handle outreach, set expectations, and then manage the account and the HR side of your own business.

They absolutely do. And the franchisor can adjust the length and content of the training based on the participants' experience and skills. That's flexible. Yeah. But the responsible owner and any franchise manager must complete it satisfactorily before opening. The franchise also provides an operations manual and on reasonable request operating advice during regular business hours.

That's good to know. Plus, additional training is available or may be required, which could involve additional fees under the circumstances described in the disclosure. This gives a prospective owner very specific resources to ask about during discovery rather than just relying on the vague promise of, you know, support.

Right. Okay. So once you're trained up, what tools help you actually organize the commercial side? Because in B2B sales, your tools are your lifeline, seeing the workflow and tech stack in action during discovery would really help a buyer picture themselves in the role.

Well, the disclosed computer system requirements give us a very clear, very modern picture of that workflow. What's in it? You need a Windows computer, HubSpot CRM, a tool called Dux Soup for LinkedIn Outreach, and Microsoft 365. Additionally, a LinkedIn Sales Navigator subscription is required separately.

Okay. HubSpot CRM, Dux Soup, LinkedIn Sales Navigator. Let's impact how those actually work together, because this is where the magic happens for a solo operator. Sales Navigator lets you pinpoint exactly who you need to talk to, say the CEO or operations director of a midsize company.

Then Dux Soup acts almost like a robotic assistant, right? Right, it automates the tedious parts of LinkedIn exactly like viewing profiles and sending initial connection messages And then when they reply HubSpot tracks the deal so you never drop the ball The entire tech stack is geared toward B2B connection and organization at scale.

That is exactly how those tools function in reality The system is used for workflow and business reporting and the disclosure notes that all gross sales must be recorded in it It makes sense. You can see how the tools fit seamlessly together with the client process and during discovery, you can also discuss which initial training participants make sense for the way you intend to operate the business, depending on who will be using those specific tools day to day.

So you've got the training, you've got your CRM, you've got your automated outreach tools, warming up leads. How does CyberGlobal actually help you get that customer conversation started in your local market when you first launched? The disclosure outlines a really robust initial marketing program for the first three months of operation and importantly there is no charge for that initial three-month program.

Oh nice. What does it include? The components include paper click advertising and localized search optimization along with email outreach, LinkedIn outreach support, content creation, social media and marketing analytics. That is a highly useful starting framework to discuss with management. You can see how the franchisor is broad marketing activity funnels right into the owner's own automated outreach and account development.

Yes, but it is important to clarify that the program describes activities intended to support business development. It does not promise a guaranteed specific number of leads or customers. Right. There are no guarantees in sales. Exactly. And after those first three months, continuing that initial marketing program is optional, and the disclosed fee for continuing is $3,000 a month.

Got it. Are there other local advertising requirements beyond that optional $3,000 program? Yes, there are. There is a separate local advertising requirement of 4% of gross sales. However, payments for the optional $3,000 a month marketing program do count toward that 4% requirement.

OK, that's a relief. So management can walk you through the launch plan, the owner's ongoing responsibilities, and how your ongoing marketing spending would be structurally organized. And how is the local market actually defined find when you're doing all this targeted outreach. The FDD describes a designated territory.

It states that the franchisor will use commercially reasonable efforts to grant only one franchise in an area with at least 5,000 businesses that have more than 20 employees. Let's pause on that specific metric for a second. 5,000 businesses with more than 20 employees.

That is a territory-sizing description rather than them handing you a supplied customer list. Right. But why specifically businesses with more than 20 employees? This raises an incredibly important point about the underlying logic of the business. Yeah. At 20 employees, a business crosses a threshold.

They have significant HR data, payroll data, and client data. A breach would be catastrophic. But they are likely still too small to afford a full-time in-house chief information security officer. Ah, I see. That makes them the absolute sweet spot for this franchise's services.

Now, regarding the territory itself, the territory is expressly non-exclusive. Wait, non-exclusive? That sounds like a potential red flag. Does that mean another CyberGlobal franchisee could set up shop right next door to me and go after the same clients? It's a very fair question to ask.

The territory is non-exclusive, and there are reserved franchisor rights and national account exceptions. Also, marketing outside the territory is subject to the system's rules, but that is exactly why that metric of 5,000 qualifying businesses is so critical. It tells you the sheer density and scale of the target market you were being granted to mitigate that overlap concern.

That makes a lot of sense. A really useful next step for a buyer would be to look at the actual map with the franchisor and discuss the kinds of accounts the owner would pursue in that territory, including, you know, exactly how national accounts and referrals are handled when boundaries inevitably blur.

Exactly. That takes the structural territory description and connects it directly to the real world customer development work we have been talking about all along. Okay. Let's ground this entire business model in the concrete financial numbers. What does the April 2025 disclosure estimate for starting one of these CyberGlobal businesses?

Let's walk through the exact figures carefully. The estimated initial investment is $102,050 to $123,900. So $102,050 to $123,900. What exactly makes up that range? That includes the $75,000 initial franchise fee, the computer systems, dues and subscriptions, professional fees, insurance, licenses and permits, and $25,000 to $40,000 in additional funds for the first three months.

Okay. And as we noted earlier, the training expense row is zero because the initial program is fully virtual. Which really fits the home-based format perfectly. The estimate really is centered on establishing the business entity, getting the tech systems up and running and funding the initial operating budget.

Yes. The additional funds estimate includes payroll, but it excludes standard pre-opening expenses. The owner's draw or salary, royalties, brand fund contributions, and debt service. It also assumes no sales offset those startup expenses. The three months mentioned describe the budgeting period, not a guaranteed break-even date.

Actual costs can certainly differ, so you would absolutely want to review the budget with management and your advisors for your proposed setup. Okay, so beyond the startup costs, what are the main continuing charges an owner needs to understand once the doors are open.

For a first CyberGlobal business, the disclosed royalty is 6% of gross sales with a $600 monthly minimum that begins after the first 12 months. Okay, 6%. Right. And once that minimum applies, the payment is the greater of the 6% percentage or the $600 minimum.

Got it. The brand fund contribution is 1% of gross sales and that may be increased to 2% on written notice. And, of course, the separate 4% local advertising requirement we discussed earlier also applies. And as we talked about earlier with the general contractor analogy, the cost of actually delivering the technical services is a completely separate part of the model, right?

Yes. That is a critical distinction to keep in mind. The disclosed service provider fee is the then current pricing, which is listed in this FDD, as $375 per day per service provider, or a reasonably equivalent fee for subscription services. Okay. That fee pays for the provider's audit or technology work.

That is a delivery cost to the franchisee. It is not what the customer is necessarily charged. Right, that's just your cost. Exactly. There was also the disclosed computer systems fee, which is $250 a month. Plus the LinkedIn sales navigator subscription at $100 a month per user.

Other fees can apply and the disclosure allows adjustments in stated circumstances. So to be clear, these figures describe the April 2025 document, but they aren't a complete operating budget or a calculation of your bottom line profit. No, definitely not. It's just a helpful way to organize it in your mind, right?

You have your startup investment, your franchise and marketing obligations, and the hard delivery costs associated with serving the customers. Customers. That's exactly the right way to frame it. The next discussion during your discovery process can get very specific about the actual services someone expects to offer and how those specific costs align with revenue.

Before we wrap up, how does the disclosure describe the history and the background of the business itself? CyberGlobal USA LLC was formed in July 2024 and began offering franchises in August 2024. Okay, so quite new. Yes, but it's affiliate CT Defense had operated a CyberGlobal business in Romania since October 2017.

So those are two different histories. The affiliates operating background overseas and the newer US franchise offering. Oh, interesting. And the US outlet tables report that there are zero franchise or company owned outlets at the end of December 31, 2024. So because this U.S.

entity is essentially a blank slate with zero operating U.S. Outlets at the end of 2024, does this FDD provide any sort of historical earnings table? No, it does not. Item 19 in the April 2, 2025 FDD does not provide a financial performance representation for company owned or franchise outlets.

It doesn't give us franchise sales, profit, or owner income figures to report. Okay. I understood. The useful discussion here really relies on the business structure we've described, the investment and expenses, and the specific operating questions you would explore with management and your advisors.

Which brings us back to the part I find most interesting about all of this, which is developing a business entirely around human relationships while leveraging approved cybersecurity providers. It leaves you with a really fascinating thought, you know? Now, as AI and automation make the actual execution of complex technical tasks more standardized over the next decade, does the real irreplaceable value of a tech company actually shift away from the engineers and entirely onto the people who can build human trust?

Because if that customer-facing role appeals to you, here's a question to take forward. Would you want to lead the client conversations yourself or explore the approved manager arrangement while staying responsible for the business. Use the disclosure and your own legal and financial advisors to evaluate the opportunity.

CyberGlobal offers a specific business to explore, developing customer relationships, selling authorized cybersecurity services, and working with approved providers to deliver the technical work. If you'd like to discuss CyberGlobal, your ownership goals, and the role you'd want to play, visit FranchiseBrokers.com, the presenting sponsor of Franchise Roundtable.