CBD Franchise
Cost, fees, owner earnings, closure rate and litigation for a CBD franchise — pulled from the franchisor's own public FDD (2024), not its sales material.
Disclosure honesty
CBD discloses little or no owner-earnings data (Item 19) — the franchisor won't put real profit in writing.
What their own earnings claim actually says
Franchisor explicitly declines to make any representations about franchisee financial performance, past or future. No financial data provided.
What a CBD franchise actually costs to run
| Fee | Disclosed | Where it comes from |
|---|---|---|
| Initial franchise fee | $20,000 | Item 5 — paid up front, before you open |
| Royalty | 2% of gross sales | Item 6 — charged on revenue, not profit |
| Advertising fund | 3% of gross sales | Item 6 — brand marketing, spent at the franchisor's discretion |
| Total recurring fees | 5% of gross sales | Before rent, labor, food or debt service |
| Total initial investment | $95,800 – $151,050 | Item 7 — franchisor's own low/high estimate |
2% royalty on wholesale cost; 3% local advertising minimum; $100/month digital platform; $20k liquidated damages upon termination.
Royalty and ad-fund percentages are charged on gross sales — an owner pays them whether or not the location is profitable.
CBD system size and owner turnover
| Total outlets | 279 |
| Ceased operations | 4 |
| Terminated by franchisor | 58 |
| Transferred to new owners | 9 |
| Closure rate | 1.4% of outlets |
23 franchised outlets closed 2023; 58 terminations; net system decline of 19 outlets.
From Item 20 of the FDD 2024. Terminations and ceased operations are the franchisor's own count of owners who stopped — the number the sales pitch leaves out.
Is CBD worth it? — how it compares to 436 similar franchises
| Ongoing fees | 5% of sales | lower than most (median 8%) |
| Startup cost | from $95,800 | cheaper than most (median $138,750) |
| Disclosure honesty | Grade F | less honest than most of the category |
| Closure rate | 1.4% of outlets | about average |
| Disclosed lawsuits | 4 | more litigious than 80% of peers |
Benchmarked against every other franchises franchise we've graded from public FDDs — the context the franchisor's pitch never gives you.
Owner take-home for a CBD
The franchisor's framing: Franchisor explicitly declines to make any representations about franchisee financial perf… We reconstruct what an owner actually keeps, from their own FDD.
- Reconstructed owner P&L — net take-home after royalty, ad fund, rent, labor & debt
- Break-even timeline + cash-on-cash ROI
- Full fee stack + required-purchase markups
- Decoded real failure / closure rate
- How it ranks vs comparable franchises
- Validation-call playbook — the exact questions to ask
See a full sample report → · 30-day guarantee
CBD franchise — frequently asked
- How much does a CBD franchise cost?
- The FDD lists a total initial investment of about $95,800–$151,050, including a $20,000 initial franchise fee.
- How much do CBD franchise owners make?
- CBD discloses little or no earnings data (Item 19) — meaning the franchisor won't put real owner profit in writing. That's a red flag worth questioning.
- What are the CBD franchise fees?
- CBD's FDD discloses a $20,000 initial franchise fee, a 2% royalty on gross sales, a 3% advertising-fund contribution, for roughly 5% of gross sales in recurring fees before rent, labor, or debt service. 2% royalty on wholesale cost; 3% local advertising minimum; $100/month digital platform; $20k liquidated damages upon termination.
- What is the CBD franchise profit margin?
- CBD discloses no Item 19 earnings representation, so no profit margin can be derived from the FDD at all. Any margin figure quoted elsewhere is an estimate, not a disclosure.
- What is the CBD franchise failure rate?
- 23 franchised outlets closed 2023; 58 terminations; net system decline of 19 outlets.
- How many CBD locations are there?
- CBD's FDD reports 279 total outlets, with 4 that ceased operations in the most recent reporting year and 9 transferred to new owners. Item 20 is where system health shows up before the marketing does.
- Does CBD have complaints or lawsuits?
- CBD discloses 4 legal matters in Item 3 of its FDD. Item 3 covers the franchisor's litigation history, which is the closest thing to a public record of how it treats franchisees — read the case descriptions, not just the count.
- Is a CBD franchise worth it?
- It depends on the numbers, not the pitch. CBD scores F on disclosure honesty, carries about 5% of sales in ongoing fees, and discloses 4 legal matters. Get the real owner take-home before you sign.
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Compare CBD to similar franchises
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Source: MN CARDS 32557-202411-11 (Clean FDD 2024). FranchiseValidate is independent and not affiliated with CBD or its franchisor. Figures are extracted from the franchisor's own public disclosure document; verify against the current FDD before any decision.