YOUR CBD STORE

Item 7 lays out the initial investment at $95,800-$151,050 for an 800-1,200 sq ft retail store in high-visibility spots, covering $20,000 franchise fee, buildout, inventory from affiliate Sunflora, and training. Ongoing fees are light at 2% royalty plus 3% ad fund on wholesale product costs (ad fund not yet collected) and $100/month digital fee—cheaper than many retail plays. But with no Item 19, you're blind on revenues or profits; typical CBD stores might pull $300K-$500K top-line based on industry benchmarks, but validate that yourself.

System health shows 275 locations (down 7% from 298 in 2022 to 277 in 2023), with 58 terminations, 9 transfers, and 33 projected new units—a red flag for a young brand franchising since 2020. Litigation notes reveal suits against ex-franchisees for non-competes and damages, signaling strict enforcement that could protect the brand but scare off buyers. At this price point, it's accessible for retail vets eyeing hemp wellness, but the contraction and legal heat suggest caution—growth stalled post-boom, so dig into Item 20 for validation before jumping in.