Risk Score
Pending analysis
Investment Range
$102,900 - $226,600
Franchise Fee
$35,000
Total US Locations
59
Business Summary
Cereset businesses use neuro-technology to help the brain relax for overall wellbeing, self-improvement, and restful sleep. Cereset franchisees offer "brain-mirroring" services, which are non-invasive and not medical procedures, to assist the brain in achieving balance and letting go of stuck patterns affecting physical and emotional well-being. Cereset makes no medical claims, and its technology is not regulated by the FDA.
Corporate History
Cereset, LLC, an Arizona limited liability company, was organized in April 2018 and began offering franchises in the same month. Although Cereset, LLC itself did not operate a similar business prior to franchising, its affiliate, Brain State Technologies LLC (BST), has operated a related business since 2006. Initially, BST utilized an older Brainwave Optimization technology, but starting in 2018, BST adopted the newer neuro-technology that is now central to the Cereset system. Until May 2018, this affiliate business operated under the name BRAIN STATE TECHNOLOGIES. Cereset, LLC's parent company is Brain State Holding Company Inc.
Financial Overview
Investment Range
$102,900 - $226,600
Franchise Fee (Low)
$35,000
Franchise Fee (High)
$35,000
Royalty %
8%
Marketing %
2%
Equipment Costs (Low)
$45,700
Equipment Costs (High)
$97,700
Working Capital
$29,500
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Going concern qualification
Financial Health Notes
The financial statements for Cereset, LLC indicate significant concerns about the franchisor's financial ability to provide services and support to its franchisees. Cereset, LLC reported substantial net losses in both 2024 ($283,275) and 2023 ($574,858). Additionally, the company is operating with a significant working capital deficit, amounting to $2,374,272 in 2024 and $1,348,607 in 2023. These financial conditions have led auditors to raise substantial doubt about Cereset, LLC's ability to continue operating as a going concern.
Financing Details
Cereset does not offer any direct or indirect financing to its franchisees. Additionally, Cereset does not guarantee any of the franchisee's notes, leases, or other financial obligations. Franchisees are responsible for arranging all their own funding.
Performance Metrics
Total US Locations
59
Franchised Units
58
Corporate Units
1
Avg Square Footage
1,400
Franchising Since
2018
Legal & Compliance Analysis
Recent Litigation
No
Bankruptcy
No
Litigation Summary
Cereset has a clear legal history with no litigation cases or legal disputes required to be disclosed.
Bankruptcy History
Cereset has no bankruptcy history to report.
Agreement Terms
Initial Term
5 years
Renewal Term
5 years
Renewal Conditions
To renew their franchise agreement, Cereset franchisees must ensure they are not in default of their current agreement and provide timely notice of their intent to renew. They are also required to sign Cereset's then-current form of franchise agreement, which may contain significantly different terms and conditions, and sign a general release of claims (subject to state law). Additionally, franchisees must remodel their facility and upgrade furniture, fixtures, and equipment to meet current brand standards, and ensure their lease term can be extended for the duration of the renewal period.
Training & Support Program
Franchisor Assistance
Cereset provides comprehensive support to its franchisees both before and during operation. Before opening, Cereset licenses its Marks, approves the facility's location, build-out, and design, and grants online access to its Brand Standards Manual. Cereset also provides specifications for required goods and services, supplies computer system components and the initial startup package, and offers remote assistance for network setup. Franchisees receive a license for proprietary software and technology, initial marketing materials, and an initial training program, along with a local webpage linked to Cereset's main website. During operation, Cereset offers ongoing guidance to improve marketing and operations, suggests pricing, and conducts periodic training programs. Cereset maintains a website listing franchisees, administers the brand and system development fund, and offers up to three hours of free monthly case management support. Additionally, Cereset may, at its discretion, develop new private label goods, negotiate discounted purchase agreements with suppliers, host conferences, create a franchise advisory council, offer on-site opening assistance, provide additional training upon request, and operate a call center for client inquiries.
Initial Training Hours
112
Training Location
Online and Scottsdale, Arizona (optional hands-on)
Ongoing Support
After opening, Cereset provides ongoing guidance and recommendations to its franchisees for improving marketing and operations, along with suggested pricing for services. Cereset conducts periodic mandatory training programs and maintains a website that lists all franchisees in good standing. The franchisor also administers a brand and system development fund and offers up to three hours of free monthly case management support. Additionally, Cereset may, at its discretion, develop new products, negotiate purchase agreements for discounted pricing, host national or regional conferences, and create a franchise advisory council. Upon request, Cereset may also provide additional training or assistance.
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
Supervisory
Territory Type
Limited
Staff Count
3
Territory Size Requirements
Cereset defines its franchise territories based on metropolitan statistical areas (MSAs). Within a franchisee's MSA, Cereset will permit no more than one CERESET® room for every 40,000 people living in that MSA, based on the most recent U.S. Census Bureau data. This means that while the territory is not exclusive, the number of competing Cereset rooms within an MSA is capped based on population.
Staffing Notes
Cereset requires a designated Managing Owner to oversee daily on-premises management and supervision, committing full-time effort unless a trained manager is hired. If a manager is appointed, they must pass a background check, complete initial training, and be supervised by the Managing Owner. All individuals who operate the Cereset technology with clients must successfully complete the initial training program. This training is provided for the Managing Owner, any initial managers, and at least one Cereset tech coach, with typically 1 to 4 people attending. Franchisees are solely responsible for setting their own staffing levels, hiring, training, and supervising their employees, ensuring clear independent employer status for their staff.