Can you provide details about the 1 litigation case filed against Cereset? What was the nature of the dispute, and has it been fully resolved?
#1
The franchise fee of $35,000 is below industry norms for wellness franchises. What does this fee cover, and are there any additional startup costs not reflected in the fee structure?
#2
Why is the royalty rate 8.0% when the typical range for this franchise type is 6.0-7.5%? Is there flexibility to negotiate this rate?
#3
Given the 5-year initial term is half the typical 10-year term for wellness franchises, what are the renewal terms and any associated renewal fees if you want to continue after year 5?
#4
The non-compete radius of 5 miles is significantly below the typical 10-25 miles for this category. How is competitive encroachment managed if another Cereset location opens within this area?
#5
Territory is protected but not exclusive. What does 'protected' mean in practice, and can the franchisor open company-owned or other franchise locations in your territory?
#6
You control only $100,000 in minimum annual gross revenue starting year 2. What is the current average gross revenue per unit, and what percentage of franchisees exceed this threshold?
#7
The 3 cases of units ceasing for 'other' reasons in 2022 and 2023—what circumstances led to these closures, and were any related to the franchisor?
#8
The personal guarantee requirement makes you and your spouse liable for all franchise obligations. Can this be limited or removed during negotiation?
#9
The franchisor controls 6 supplier categories (furnishings, signage, technology, inventory, uniforms, marketing). Are these the only approved suppliers, and what are typical markup percentages on these products?
#10
Late payment interest is set at 18% per annum. Under what circumstances would late payments occur, and is there a grace period before interest accrues?
#11
What does the $195 monthly technology fee cover, and does it include ongoing software updates, customer management systems, and support?
#12
All disputes must be arbitrated in Maricopa County, Arizona. If you operate outside Arizona, what are the practical implications of this requirement for travel and legal costs?
#13
The system grew from 31 to 55 units in 3 years while maintaining consistent unit closures. Are these new units primarily franchises or company-owned locations?
#14
What training and ongoing support are included with the franchise, given the System Health score of 80 (above typical range) and Support & Training score of 90?
#15
Of the 2 units closed in 2021, 2022, and 2023 respectively, how many were franchisor-terminated versus owner-initiated closures?
#16
The Contract Terms score of 48 is significantly below the typical range of 60-65. What specific contract provisions are considered franchisor-favorable, and are any negotiable?
#17
Since there are no renewal options listed, does the franchise agreement allow for any continuation after the 5-year initial term, or would you need to renegotiate entirely?
#18
The transfer fee is $10,000. Does this apply if you sell the business to an approved buyer, and what are the franchisor's approval criteria?
#19