Cell Phone Repair Franchise
Audited FinancialsRisk Score
Pending analysis
Investment Range
$76,750 - $279,400
Total US Locations
424
Business Summary
CPR, or Cell Phone Repair, operates businesses that provide authorized repair services for smart phones, cell phones, laptops, game systems, and other electronic devices. CPR locations also sell refurbished mobile devices and accessories. The franchise primarily serves companies, cell phone dealers, and the general public from designated retail locations.
Corporate History
MMI-CPR, LLC, operating as Cell Phone Repair, was officially organized in Delaware on April 5, 2013, though it was initially named MMI-FGS, LLC and was inactive for a period. The brand's origins trace back to its predecessor, CPR-Cell Phone Repair Franchise Systems, Inc., which was incorporated in Florida on March 15, 2007. This predecessor company began offering CPR franchises in January 2008 and continued until MMI-CPR, LLC purchased it on October 13, 2013. MMI-CPR, LLC has been offering CPR franchises since October 2013. MMI-CPR, LLC is a wholly-owned subsidiary of SOSI CPR LLC, which is ultimately owned by Assurant, Inc. MMI-CPR, LLC also previously offered franchises under the Computer Troubleshooters brand from November 2019 through December 2023. These franchises provided on-site technology services, sometimes co-branded with CPR or as standalone businesses. As of December 31, 2023, there were 442 franchised CPR Businesses and one affiliate-owned location.
Financial Overview
Investment Range
$76,750 - $279,400
Franchise Fee (High)
$19,900
Royalty %
5.8%
Marketing %
2%
Equipment Costs (Low)
$40,500
Equipment Costs (High)
$179,500
Working Capital
$12,500
Audited Financials
Yes
Offers Financing
Yes
Audit Opinion
Unqualified opinion
Financial Health Notes
SOSI CPR LLC, the guarantor of MMI-CPR, LLC, has reported consistent net losses over the past three years. The net loss was $2.173 million in 2023, $1.445 million in 2022, and $3.068 million in 2021. Despite these losses, the company maintains a member's equity of $17.640 million as of December 31, 2023, and actively manages its equity to meet a minimum net worth of $15.0 million required for franchise disclosure in various states. Cash and cash equivalents were $8.562 million at the end of 2023. The independent auditors issued an unqualified opinion on the consolidated financial statements, and management does not anticipate that pending litigation will have a material adverse effect on the company's financial position.
Financing Details
MMI-CPR, LLC offers financial assistance to eligible franchisees for fixtures, tools, and equipment. For new franchisees or those acquiring a new CPR location under the Store Conversion Program (SCP) or GROWTH programs, MMI-CPR, LLC will provide up to $20,000 in funding for approved items. Certain GROWTH program participants meeting specific deadlines may be eligible for up to $30,000. MMI-CPR, LLC directly pays the vendor for these items. Franchisees are generally not required to reimburse MMI-CPR, LLC for these purchases if their CPR Franchise Business remains open and operating for the first five years of the agreement term. However, if the business terminates early, or if an existing franchisee reduces their total number of CPR locations within the five-year period, a pro-rated reimbursement for the funding amount is required. For example, if a franchisee receiving $20,000 in funding terminates at the beginning of year five, they would owe $4,000. Similarly, existing franchisees purchasing a CPR location under the SAVE program can receive up to $10,000 for approved fixtures, with comparable reimbursement conditions tied to remaining operational for five years. All owners of the franchisee entity are responsible for the repayment of this financial assistance. MMI-CPR, LLC does not offer any other direct or indirect financing or guarantees for leases or other obligations.
Performance Metrics
Total US Locations
424
Franchised Units
423
Corporate Units
1
Avg Square Footage
1,200
Franchising Since
2008
Legal & Compliance Analysis
Recent Litigation
Yes
Bankruptcy
No
Litigation Count
30
Litigation Summary
MMI-CPR, LLC has been involved in several legal disputes, including a class-action lawsuit and numerous individual arbitration demands from current and former franchisees, all filed since June 2022. The class action, initially filed in Ohio, alleges that MMI-CPR, LLC breached the franchise agreement, violated Ohio business opportunity and deceptive trade practice statutes, and made fraudulent misrepresentations. Specifically, franchisees claim MMI-CPR, LLC mandated an exclusive OEM battery supplier that allegedly charged higher prices and sold defective parts, failed to provide information on marketing expenses and competing activities, and did not offer promised advisory services. This class action was stayed pending arbitration. Following the class action, 27 individual arbitration demands were filed with the American Arbitration Association in January and March 2023, asserting similar claims of breach of contract, fraudulent misrepresentation, and tortious interference. Claimants in these arbitrations are seeking between $150,000 and $300,000 in damages. MMI-CPR, LLC has filed counterclaims in several of these arbitrations, alleging breaches of the franchise agreements by the claimants. Final hearings for many of these cases are scheduled for late 2024 and early 2025. Another putative class action suit was filed in August 2023 in Ontario, Canada, by current and former CPR franchisees, making similar allegations of breach of contract, deceptive trade practices, and fraudulent misrepresentations. This Canadian lawsuit was also stayed pending arbitration, though no arbitration demands have yet been filed for this specific case. Most recently, in January 2024, a former CPR franchisee and Area Representative filed an arbitration demand against MMI-CPR, LLC, alleging wrongful termination of their Area Representative Agreement and unjust enrichment, seeking $300,000 in compensatory damages and attorney's fees.
Bankruptcy History
MMI-CPR, LLC has no bankruptcy history to report.
Agreement Terms
Initial Term
10 years
Renewal Term
10 years
Renewal Conditions
To renew their franchise, CPR (Cell Phone Repair) franchisees must provide MMI-CPR, LLC with written notice of their intent to renew between three and twelve months before their current agreement expires. The franchisee and any affiliates must be in full compliance with all terms of their current Franchise Agreement and other agreements, and all monetary obligations must be satisfied. Franchisees are also required to upgrade their premises and equipment to meet MMI-CPR, LLC's then-current standards for new CPR Franchise Businesses, which may include refurbishing the site and updating equipment, software, and decor. Additionally, they must comply with current operational, qualification, and training requirements, and execute a general release and MMI-CPR, LLC's then-current form of franchise agreement, which may contain materially different terms. A new initial franchise fee or renewal fee is not required, but minimum royalty fees will apply immediately upon renewal.
Training & Support Program
Franchisor Assistance
Before a CPR (Cell Phone Repair) franchise opens, MMI-CPR, LLC provides assistance with site selection by offering criteria for acceptable locations and reviewing proposed sites. They furnish standards and specifications for the store's build-out, fixtures, decor, and design, and help with ordering initial equipment, signs, inventory, and supplies. MMI-CPR, LLC also provides advice and guidance for grand opening advertising and loans copies of the Operations Manuals. Initial training is provided to the principal owner, one manager, and one technician, focusing on store operations. After opening, MMI-CPR, LLC offers ongoing training at a designated location upon request or as deemed necessary. They refer service inquiries received from prospective customers in the franchisee's Designated Area and provide continuing advisory services via telephone during normal business hours. Information about the franchisee's business is included on the Cell Phone Repair website. A corporate team member also provides eight weeks of ongoing coaching calls following initial training. MMI-CPR, LLC may offer additional training programs, seminars, and an annual mandatory conference, for which franchisees cover travel and incidental costs. Optional on-site training at the franchisee's business is available for an additional daily fee plus trainer expenses.
Initial Training Hours
152
Training Location
Atlanta Training Center, Cleveland Training Center, or online/virtually
Ongoing Support
After opening, CPR (Cell Phone Repair) franchisees receive ongoing training at a designated location upon written request or if deemed necessary. MMI-CPR, LLC refers service inquiries from prospective customers within the franchisee's Designated Area and provides continuing advisory services by telephone during normal business hours. Information about the CPR Franchise Business is also included on the Cell Phone Repair website. Following initial training, a member of the corporate team conducts eight weeks of ongoing coaching calls. MMI-CPR, LLC may also offer additional training programs, including seminars and conferences, and requires attendance at an annual conference. On-site training at the franchisee's business is available upon request for a daily fee plus travel expenses.
Franchise Requirements
Industry Experience Required
No
Management Experience Required
No
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
Retail
Owner Participation
Absentee Allowed
Territory Type
Protected
Territory Size Requirements
MMI-CPR, LLC defines a franchisee's Designated Area by contiguous zip codes and a unique location name. These territories are typically based on a population of approximately 80,000 to 140,000 people, using the most recent census data. The geographical size of the Designated Area is restricted; it will not extend more than 2 miles if the CPR (Cell Phone Repair) Franchise Business is located in a metropolitan statistical area with a population of 500,000 or more, and no more than 3 miles if in a metropolitan statistical area with a population of less than 500,000 people.
Staffing Notes
MMI-CPR, LLC requires initial training for the franchisee's principal owner, one manager, and one technician. The manager, or the principal owner if they are managing the business, must complete the initial training and dedicate their best efforts to supervising and managing the CPR (Cell Phone Repair) Franchise Business during business hours. Although MMI-CPR, LLC does not mandate the owner's personal supervision, they recommend it. Franchisees are solely responsible for hiring, training, supervising, compensating, and terminating all their employees and any independent contractors. Each employee is required to sign a confidentiality and non-disclosure agreement designated by MMI-CPR, LLC. During training, one attendee (potentially the principal owner) must specialize in operations, retail, and marketing, while another must specialize in device repairs.