CBD American Shaman Franchise Cost, Revenue & Review 2026
- Investment
- $88K – $184K
- Disclosed sales
- not disclosed
- SBA charge-off
- Not SBA-matched
Data from FDD filing
Analysis by FranchiseVerdict Research · Methodology
CBD American Shaman is a retail franchise selling hemp-derived CBD wellness products, tinctures, edibles, and topicals. Franchisees run storefronts managing inventory, customer education, and compliance with CBD regulations.
FranchiseVerdict summary · 2026
A CBD American Shaman franchise requires a total initial investment of $88K – $184K, including a $10K franchise fee. This franchisor makes no financial performance representation in Item 19 of its FDD. Item 19 is voluntary under the FTC Franchise Rule, and this filing states that it makes none, so no revenue or earnings figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that. FranchiseVerdict grade: C (Average), an editorial assessment, not investment advice. Run a live ROI scan →
Sources, dates and evidence
FDD issued: · Data extracted: · Last cited check: · Staleness risk: high - issued more than two years ago
Evidence: strong✓ Investment (Item 7)✓ Item 19 status✓ Units and owners (Item 20)✗ SBA loan coverage✓ Litigation (Item 3)✓ Financial statements (Item 21)✓ Franchisor identityhow this is scored3 of 3 headline figures on this page cite a page of the filing.
Overview
- Investment
- $88K – $184K
- 7th pct Retail
- Avg gross sales
- N/A
- Royalty
- Set by a formula
- Units
- 212
- 35th pct Retail
- SBA charge-off
- N/A
Quick verdict · Retail · color = vs category peers
Green = favorable by >10% vs Retail median · No shading = within ±10% · Red = unfavorable by >10% · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
Bottom line
- COSTTotal investment $88K – $184K including a $10K franchise fee.
- RETURNSThis franchisor makes no financial performance representation in Item 19 of its FDD. Item 19 is voluntary under the FTC Franchise Rule, and this filing states that it makes none, so no revenue or earnings figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that.
- RISKVerdict C (Average), verdict score 40/100 (higher is better).
- GROWTHNegative: net -38 franchised outlets in the latest year (6 opened, 44 closed); 3 signed but not yet open (Item 20).
- DECLINESystem contracting at -29.9% CAGR over 3 years. Investigate whether closures are franchisor-driven (consolidation) or franchisee-driven (economics).
Item 1 · who you're contracting with
The Franchisor
Corporate structure & franchisor financials
- Legal entity
- American Shaman Franchise System, LLC
- Parent company
- SVS Enterprises, LLC
- FDD Item 1, page 7 of the 2024 FDD
- CEO title
- President
- Stephen Vincent Sanders
- Incorporated in
- NV
- HQ
- 1501 Iron Street, North Kansas City, Missouri 64116
- Auditor
- Marr and Company, P.C.
- Audited financials
- Franchisor revenue
- $3.5M
- vs $2.8M prior year
Overview
About
- CEO
- Stephen Vincent Sanders
- Headquarters
- MO
- Founded
- 2017
- FDD year
- 2024
- States available
- 23
Can you afford it, and what does the money buy?
Entry cost runs 59% below the typical retail franchise.
Source: FDD 2024 · Items 5–7
Full Item 7 breakdown12 line items
Initial investment breakdown
| Line item | Low | High | |
|---|---|---|---|
| Initial Franchise Feenot refundable | $10K | $10K | |
| Franchise Agreement Reserve Deposit | $5K | $5K | |
| Real Property Lease Security Deposit and One Month's Rent | $2K | $10K | |
| Franchise Location Build Out and Leasehold Improvements | $25K | $75K | |
| Furniture, Fixtures, and Equipment | $4K | $10K | |
| Signage | $4K | $10K | |
| Opening Inventory | $20K | $25K | |
| Training Period Payroll and Travel and Living Expenses | $2K | $4K | |
| Governmental Permits and Licenses | $500 | $2K | |
| Utility Deposits | $100 | $300 | |
| Insurance Premiums (three months) | $600 | $2K | |
| Additional Funds - 3 Months | $16K | $32K | |
| Total initial investment | $88K | $184K |
Line items extracted from FDD Item 7. Ranges reflect the franchisor's stated low and high per line. Total is the sum of line-item lows / highs — actual costs may fall outside this range depending on market and build-out scope.
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $88K – $184K
- Top 40% of category vs category
- Liquid capital req'd
- $16K – $32K
- Top 40% of category vs category
- Franchise fee
- $10K – $10K
- Top 40% of category vs category
- Royalty
- Currently $0; franchisor may impose up to 6% of Gross Rev…
- Ad fund
- $800 per month flat fee (National Marketing Fund); may in…
- Total fee load
- 6.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Technology fee | $200 |
| Transfer fee | $5K |
| Renewal fee | $2K |
| Inventory (initial) | $20K – $25K |
| Total fee load | 6.0% of rev |
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
CBD American Shaman makes no financial performance representation in Item 19 of its FDD - a voluntary item under the FTC Franchise Rule - so no unit revenue figures are disclosed. The return models need a revenue figure to start from, and the operating costs that turn gross sales into a profit are in no FDD. Enter your own and the calculator runs on your assumptions — nothing here is modelled until you do.
Returns model · single-unit ROIC
What would one CBD American Shaman unit return on the cash you put in?
Illustrative category typicals — not sourced to any filing, survey or sample. Replace them with figures from franchisee validation calls before you rely on the output.
Unlevered ROIC · per unit
Your modelled return on total invested capital, before any debt financing.
—
An FDD discloses gross sales, not profit. We hold no sourced figure for annual revenue, royalty rate, ad fund rate, COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.
These models are for research and scenario planning only. Not investment advice. Actual results depend on your specific location, management, and market conditions. Consult a franchise attorney and accountant before signing any franchise agreement.
Item 19 · Source: 2024 FDD
Financial Performance
No financial performance representation
This franchisor makes no financial performance representation in Item 19 of its FDD. Item 19 is voluntary under the FTC Franchise Rule, and this filing states that it makes none, so no revenue or earnings figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that.
Item 20 of the FDD lists current and former franchisees; asking them directly is the standard way to fill this gap.
Operator outlook
What the numbers say
Data-driven interpretation of this brand's financial disclosures, fee structure, and system trajectory.
Fee burden
Total ongoing fee load of 6.0% — below the Retail median of 8.0%.
Disclosure
This franchisor makes no financial performance representation in Item 19 of its FDD. Item 19 is voluntary under the FTC Franchise Rule, and this filing states that it makes none, so no revenue or earnings figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that. Item 20 of the FDD lists current and former franchisees; asking them directly is the standard way to fill this gap.
Operator retention
System contracting at -29.9% CAGR over 3 years. Investigate whether closures are franchisor-driven consolidation or franchisee exits.
Source: FDD Item 19 financial performance representations and publicly filed FDD data. Past performance is not indicative of future results. Verify all figures with the franchisor and current franchisees before making any investment decision.
vs Retail medians
How CBD American Shaman Compares
Category median of published Retail brands that report the figure; the middle half spans the 25th to 75th percentile and n counts the brands behind it. Medians are used because a few very large systems pull an average far from the typical brand. Revenue is disclosed gross sales, not profit.
Is the system healthy?
Source: FDD 2024 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 212
- Opened
- 6
- Last reporting year
- Closed
- 44
- Terminated
- 0
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 0
- Term expired, not renewed (per Item 20)
- Turnover rate
- 20.8%
- Company-owned
- 43
- Corporate units in the system
- % franchised
- 80%
- vs corporate-owned
- Net growth (3-yr)
- -29.9%
- Net unit change over 3 years
- 3-yr CAGR
- -29.9%
- Compounded over last 3 years
Last fiscal year · Item 20 exits and transfers
- Terminated
- 0
- Not renewed
- 0
- Transferred
- 9
- Reacquired
- 1
- Franchisor bought back
- Signed, not yet open
- 3
- 0.01 per open outlet · Item 20 Table 5
- Projected new
- 14
- Franchisor's next-year forecast
- Termination rate
- 3.0%
- Franchisor-initiated terminations
- Ceased ops
- 21.1%
- Units that stopped operating
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 12 · 23 states reported
The Territory Map
FDD Item 12 reports the state count, but the specific list isn't in our current data. The map will appear once we re-extract from the FDD or enough franchisee contacts are available.
23
states with franchisees (per FDD Item 12)
A system losing more than 10% of its units year-over-year is a red flag. Check whether closures are concentrated in specific regions.
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA 7(a) and 504 loan disclosures, public data unique to FranchiseVerdict.
No SBA loan data available for this brand.
What could kill this investment?
Source: SBA 7(a) FOIA · FDD Items 3, 21
Risk analysis
FranchiseVerdict rating + FDD Items 3, 4, 8, 16, 21
Risk & Legal
High-risk franchise with documented regulatory violations, shrinking unit base, unresolved franchisee litigation, and absence of financial transparency, signaling operational deterioration and potential franchisor instability.
Litigation (Item 3)
Subject: the franchisor is a named party (defendant).
1 pending AAA arbitration by former franchisee Vitality/Johancsik seeking $500K-$1M claiming FTC Rule violations, fraud, and various contract/statutory claims. 3 government actions: Wisconsin Consent Order (May 2021) for selling franchise after expired registration and failing to disclose officer bankruptcy; Washington State charges (June 2021) for same; California Consent Desist and Refrain Order (February 2022) for same. FDA Warning Letter to affiliate CBDAS (November 2022) for CBD-infused edible marketing.
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Marr and Company, P.C.
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Item 21/Exhibit E states audited financial statements for FY2023, FY2022, FY2021 plus unaudited statements as of March 31, 2024 are attached, but the Exhibit E statement pages (E-3 to E-29) are scanned images and contain no extractable numeric data; no figures or CPA firm name are present in the document text.
Supplier relationship · Items 8 & 16
- Franchisor sells you products: Yes
- Kickbacks from required suppliers: Yes
- Must buy proprietary products: Yes
- Restricted to system-approved products: Yes
Score breakdown · what drove the 40 / 100 verdict
- 01MEDUnit count declined 18.4% year-over-year (212 units), indicating franchisee attrition and contraction
- 02MEDNo disclosed average revenue or net income data (Item 19) prevents validation of ROI claims and profitability assessment
- 03MINORMultiple regulatory actions: FDA warning letter on CBD edibles, state consent orders in Wisconsin, Washington, and California for disclosure/registration failures
- 04MINORArbitration demand from former franchisees (Johancsik case) suggests operational or contractual disputes affecting unit viability
- 05MINORUnprotected territory creates direct competition risk and cannibalization within franchise network
- 06MED6% royalty on undisclosed revenue with $88K–$184K upfront investment presents unclear payback timeline and profitability floor
Severity inferred from the FDD text · not a regulatory classification
What are you signing up for?
Ongoing fees run about 6.0% of sales (royalty + ad fund), before rent and labor.
Source: FDD 2024 · Items 11, 12, 17
FDD Items 12, 15, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 5 years |
|---|---|
| Renewal term | 5 years |
| Allowed renewalsℹ | 1 |
| Territory type | No territory protection |
| Protected territory | No |
| Exclusive territoryℹ | No |
| Online sales rightsℹ | Granted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Required |
| Non-compete (years)ℹ | 2 years |
| Non-compete (miles)ℹ | 15 mi |
| Right of first refusalℹ | Yes |
| Transfer requires consent | Yes |
| Termination notice | 60 days |
| Mandatory arbitration | Yes |
| Arbitration location | Kansas City, Missouri |
| Jury trial waiver | Yes |
| Governing law | MO |
| Litigation count | 4 |
View Item 3 litigation summary
1 pending AAA arbitration by former franchisee Vitality/Johancsik seeking $500K-$1M claiming FTC Rule violations, fraud, and various contract/statutory claims. 3 government actions: Wisconsin Consent Order (May 2021) for selling franchise after expired registration and failing to disclose officer bankruptcy; Washington State charges (June 2021) for same; California Consent Desist and Refrain Order (February 2022) for same. FDA Warning Letter to affiliate CBDAS (November 2022) for CBD-infused edible marketing.
Items 10, 11
Training & Operations
- Classroom training
- 34 hrs
- On-the-job training
- 24 hrs
- Training location
- Shaman Office (North Kansas City, Missouri) and designated training store in Overland Park, Kansas or Kansas City metropolitan area
- Ongoing training
- Required
- Time to open
- 10 mo
- From signing to launch
- Site selection
- Franchisee selects; franchisor reviews and must approve based on site selection criteria
- Franchisor financing
- Not offered
- Item 10
- POS system
- CBD American Shaman POS System (proprietary)
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: CBD American Shaman POS System (proprietary)
Item 20 · call current owners
Franchisee Contacts
169 owners to call
Name · phone · city · state. Extracted from FDD Item 20
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a CBD American Shaman franchise?
The total investment to open a CBD American Shaman franchise ranges from $88K – $184K, with an initial franchise fee of $10K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do CBD American Shaman franchise owners earn?
CBD American Shaman makes no financial performance representation in Item 19 of its FDD - a voluntary item under the FTC Franchise Rule - so no unit revenue figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that. Item 20 of the FDD lists current and former franchisees; asking them directly is the standard way to fill this gap.
Who owns CBD American Shaman?
CBD American Shaman is franchised by American Shaman Franchise System, LLC. Its parent company is SVS Enterprises, LLC. Source: FDD Item 1, 2024 filing.
What is Item 19 in the CBD American Shaman FDD?
The FDD section where a franchisor may disclose financial performance of its outlets. Disclosure is optional and formats vary; figures are typically gross sales, which is revenue before expenses, not profit. FranchiseVerdict extracts these figures directly from the CBD American Shaman FDD and qualifies whose outlets they describe.
What is CBD American Shaman's franchise failure rate?
SBA 7(a) loan charge-off data is not available for CBD American Shaman (fewer than 10 loans on file). Charge-off rates are one way to gauge franchise risk, but not all franchise loans go through the SBA program. We recommend reviewing turnover and closure data in the FDD and speaking with current franchisees.
How many CBD American Shaman franchise locations are there?
As of their most recent FDD filing, CBD American Shaman has 212 total units in the United States, including 169 franchised units and 43 company-owned units. 6 new units were opened in the latest reporting year.
Is CBD American Shaman a good franchise to buy?
FranchiseVerdict rates CBD American Shaman as a C-grade franchise with a verdict score of 40 out of 100 (higher is better). The grade is a deterministic score built from six weighted dimensions — financial health, unit economics, unit growth, scale, legal, and transparency — then calibrated against SBA loan charge-off rates and FDD age. Transparency is one of the six, so a filing that discloses less scores lower on that dimension than one that discloses more. Our rating is based solely on publicly available FDD and government data; we recommend speaking with current franchisees before making any investment decision. This is not investment advice.
Data sourced from public FDD filings and SBA 7(a) FOIA records. Not financial advice.
For franchisors
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Data extracted from public FDD filings and SBA 7(a) loan disclosures (FOIA). This information is provided for research purposes only and does not constitute financial, legal, or investment advice. Verify all figures with the franchisor's current Franchise Disclosure Document before making any investment decision.