Your CBD Store Franchise
Audited FinancialsRisk Score
Pending analysis
Investment Range
$95,800 - $151,050
Franchise Fee
$10,000
Total US Locations
279
Business Summary
Your CBD Stores Franchising, LLC operates retail stores under the Sunmed™ | Your CBD Store® brand, specializing in herbal, dietary, and nutritional supplements that contain lawful CBD and cannabinoids from industrial hemp, as well as non-hemp derived wellness products. These stores are typically between 800 and 1,200 square feet and are designed to a specific format and aesthetic.
Corporate History
Your CBD Stores Franchising, LLC was organized as a Florida limited liability company on October 14, 2019. The brand, Sunmed™ | Your CBD Store®, began offering franchises in February 2020. The franchisor is an affiliate of Sunflora, Inc., which was established in May 2018 to produce lawful CBD and cannabinoid products and financially supports Your CBD Stores Franchising, LLC. The company operates a system of retail stores selling herbal, dietary, and nutritional supplements derived from industrial hemp and other wellness products. Your CBD Stores Franchising, LLC is actively working to convert stores operating under an affiliate agreement to franchised locations.
Financial Overview
Investment Range
$95,800 - $151,050
Franchise Fee (Low)
$10,000
Franchise Fee (High)
$20,000
Royalty %
2%
Equipment Costs (Low)
$18,000
Equipment Costs (High)
$31,500
Working Capital
$17,500
Audited Financials
Yes
Offers Financing
Yes
Audit Opinion
Unqualified opinion
Financial Health Notes
The independent auditors have issued an unqualified opinion on Your CBD Stores Franchising, LLC's financial statements and have not expressed any substantial doubt about the company's ability to continue as a going concern. Sunmed | Your CBD Store's affiliate, Sunflora, Inc., provides management, operational, and administrative services to the franchisor at no charge and offers working capital advances on favorable terms, indicating a strong financial backing.
Financing Details
Your CBD Stores Franchising, LLC does not regularly offer financing, but in limited situations, it may finance up to $30,000 for the initial Opening Inventory purchase. This financing is provided through a secured promissory note with a 12.5% annual interest rate, repayable in equal monthly installments over 36 months. The loan is secured by the Opening Inventory, and Your CBD Stores Franchising, LLC requires a personal guarantee from the franchisee and their spouse or all members/shareholders if the franchisee is an entity. The note can be prepaid without penalty.
Performance Metrics
Total US Locations
279
Franchised Units
275
Corporate Units
4
Avg Square Footage
1,000
Franchising Since
2020
Legal & Compliance Analysis
Recent Litigation
Yes
Bankruptcy
No
Litigation Count
5
Litigation Summary
Your CBD Stores Franchising, LLC has been involved in five litigation cases as detailed in its FDD. In February 2020, Sunflora, Inc. (an affiliate) sued a distributor for breach of contract, fraud, RICO Act, and trade secret claims; this case settled in June 2022. In January 2022, Sunmed | Your CBD Store and its affiliate, Sunflora, Inc., sued a terminated franchisee and its principals for breach of contract, trade secret violations, non-compete enforcement, and trademark infringement, which settled in March 2022 for $12,000. In October 2022, Sunmed | Your CBD Store initiated arbitration against a terminated franchisee for similar violations, winning an award of over $363,000 in May 2023, which was affirmed by the U.S. District Court in October 2023; the franchisee subsequently filed for bankruptcy in December 2023, and Sunmed | Your CBD Store is participating in those proceedings. Additionally, in April 2022, Sunflora, Inc. faced a lawsuit from affiliate reseller store owners for fraudulent inducement, to which Sunflora counterclaimed for breach of contract and deceptive trade practices; this case settled in July 2023. Most recently, in July 2023, a franchisee filed an arbitration demand against Sunmed | Your CBD Store, alleging breach of contract and fraud concerning territorial exclusivity at Hartsfield-Jackson Atlanta International Airport, seeking up to $10 million in damages. In January 2024, the arbitrator denied Sunmed | Your CBD Store's motion to dismiss, and the franchisor has requested to move the case to State Court. This case is ongoing.
Bankruptcy History
Your CBD Stores Franchising, LLC has no bankruptcy history to report. Item 4 of the FDD states that no bankruptcy is required to be disclosed.
Agreement Terms
Initial Term
5 years
Renewal Term
5 years
Renewal Conditions
To renew their franchise agreement, Your CBD Stores Franchising, LLC franchisees must provide written notice of their intent to renew at least six months before the current term expires. They must be in good standing, without any defaults of the Franchise Agreement or other related agreements. Franchisees are required to sign Your CBD Stores Franchising, LLC's then-current form of Franchise Agreement, which may have different terms. A renewal fee, equal to 50% of the then-current Initial Franchise Fee, is payable (though it may be waived based on past performance). Franchisees must also refurbish their store to meet current brand standards, complete any required retraining programs, sign a general release of claims against Your CBD Stores Franchising, LLC, and maintain their current location or secure an approved alternative.
Training & Support Program
Franchisor Assistance
Before opening, Your CBD Stores Franchising, LLC assists franchisees with lease/sublease approval, provides standard architectural plans for store build-out, licenses the necessary trademarks, and loans a confidential Operations Manual. It also offers Grand Opening assistance, including planning and developing a social media marketing program, and provides periodic guidance on store development, opening, equipment selection, and employee selection/training. Once operational, Your CBD Stores Franchising, LLC offers ongoing guidance on operational methods, advertising, product specifications, bookkeeping, inventory control, and system improvements. Franchisees receive suggestions for retail pricing, notifications on changes to standards or suppliers, access to advertising materials, and additional training for managers.
Initial Training Hours
48
Training Location
Palmetto, Florida
Ongoing Support
After opening, Your CBD Stores Franchising, LLC provides ongoing guidance to franchisees on various aspects of their business, including operational methods and procedures, advertising and promotion strategies, product specifications, bookkeeping and accounting practices, purchasing and inventory control, and insights into new system developments and improvements. The franchisor offers suggestions for retail prices, particularly for newly launched products, and notifies franchisees of any changes to store standards, specifications, or approved suppliers. Franchisees also gain access to advertising and promotional materials developed by Your CBD Stores Franchising, LLC and can receive additional training for their managers. The franchisor may also host periodic conferences or management meetings, which franchisees may be required to attend for a fee, plus their own travel and living expenses.
Franchise Requirements
Ideal Candidate Profile
Your CBD Stores Franchising, LLC seeks franchisees who have previous business management experience, which is considered helpful, and previous business ownership experience, which is highly desirable. While the franchise acknowledges that store ownership is not a passive investment, it does not strictly require franchisees to personally supervise the day-to-day operations. However, owners must maintain direct responsibility for their store and ensure that a trained manager is on-site during most operating hours. Offsite marketing activities and community engagement are also considered critical for success.
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
Protected
Staff Count
2
Territory Size Requirements
Your CBD Stores Franchising, LLC grants franchisees a protected territory that will not exceed a three-mile radius from their store. The exact size and scope of the Franchise Territory are determined on a case-by-case basis through negotiation, considering factors such as population density and other market conditions. In most non-metropolitan areas, the territory will be a radius of no more than three miles from the store, or potentially smaller, as specified in the Franchise Agreement.
Staffing Notes
A typical Sunmed™ | Your CBD Store® is expected to employ approximately one to three individuals, some of whom may work part-time, depending on the specific staffing needs. Your CBD Stores Franchising, LLC requires that during operating hours, the franchisee must ensure a manager who has successfully completed the initial training program is managing the store when the owner is not present. Franchisees are responsible for implementing an approved training program for their employees and for their proper training and management.