CPR Cell Phone Repair Franchise

Financing Details

CPR Cell Phone Repair offers financial assistance to franchisees for purchasing approved fixtures, tools, and equipment. For new franchisees or those participating in the SCP or GROWTH programs, CPR Cell Phone Repair provides up to $20,000. Under this arrangement, CPR Cell Phone Repair places the orders directly with approved suppliers and pays the vendors. However, if the franchise business terminates before the full term of the Franchise Agreement, the franchisee is required to reimburse CPR Cell Phone Repair a pro-rated amount for the funded items. Existing franchisees purchasing a business under the SAVE Program are eligible for up to $10,000 for approved fixtures. Similar to the other program, CPR Cell Phone Repair pays the vendor directly, and the franchisee is required to reimburse a pro-rated amount if the Franchise Agreement terminates early. To qualify for this funding, franchisees must be approved by CPR Cell Phone Repair, be in full compliance with their existing Franchise Agreements, and participate in all National Accounts programs. Additionally, new franchisees converting an existing electronic repair store under the SCP program must demonstrate at least $18,000 in monthly revenue and maintain a Google business rating of 4.0 or higher. Beyond these programs, CPR Cell Phone Repair does not offer any other direct or indirect financing or guarantees for leases or other obligations.

Litigation Summary

CPR Cell Phone Repair has faced significant legal activity, primarily from franchisees. In June 2022, a putative class action lawsuit was filed against CPR Cell Phone Repair and its parent company, Assurant Inc., in Ohio. This lawsuit alleged breaches of the franchise agreement, fraudulent misrepresentation, and violations of Ohio's business opportunity and deceptive trade practice statutes, specifically concerning an OEM battery supplier. This class action was stayed pending arbitration. Following the class action, 36 individual arbitration demands were filed with the American Arbitration Association starting in January 2023, asserting similar claims. Some of these arbitrations have scheduled final hearings in 2025, 2026, or 2027, while others are in the discovery phase. Several of these demands have been either confidentially settled or voluntarily withdrawn by the claimants in 2024. CPR Cell Phone Repair has also filed counterclaims in some of these arbitrations, alleging breaches of the franchise agreement by the claimants. In August 2023, a similar putative class action suit was filed in Ontario, Canada, with allegations mirroring the Ohio case. This Canadian suit was also stayed pending arbitration, and as of January 2025, the parties agreed to a mutual release of claims. Additionally, in January 2024, a former CPR Cell Phone Repair franchisee and Area Representative filed an arbitration demand, claiming wrongful termination of their Area Representative Agreement and unjust enrichment. This case was settled confidentially in September 2024. Another former franchisee's entity filed an arbitration demand in November 2024, alleging that CPR Cell Phone Repair breached the franchise agreement by not providing adequate support and allowing territorial encroachment. In March 2025, the arbitrator disqualified the claimant's non-attorney principal from representing them in this arbitration. Many of these cases are still pending or have future hearing dates.

Renewal Conditions

To renew their CPR Cell Phone Repair franchise, franchisees must meet several conditions. These include upgrading their premises and equipment to meet current standards, being in full compliance with all terms of the Franchise Agreement and any other agreements with CPR Cell Phone Repair or its affiliates, and satisfying all monetary obligations. Franchisees must also provide written notice of their election to renew between 3 and 12 months before the current agreement expires. They must comply with all current operational, qualification, and training requirements, and sign a general release along with CPR Cell Phone Repair's then-current franchise agreement. The terms of this new agreement may differ significantly from the original one. However, franchisees will not be required to undergo initial training or pay another initial franchise fee or renewal fee upon renewal, but the Royalty Minimums will apply immediately.

Staffing Notes

CPR Cell Phone Repair does not require the franchisee to personally supervise the business, but it is recommended. If the franchisee chooses not to supervise, they must designate an employee as a point of contact. Any individual who manages the CPR Cell Phone Repair business, whether a principal owner or an employee, must successfully complete the initial training program and dedicate their full efforts to the supervision and management of the business during operating hours. Franchisees are solely responsible for all aspects of their employees' hiring, training, supervision, compensation, and termination. All employees are required to sign confidentiality and non-competition agreements. Initial training provided by CPR Cell Phone Repair covers the principal owner, one manager, and one repair technician, with specific roles for operational/marketing training and device repair specialization.