CBD American ShamanFranchise Cost, Revenue & Review 2026
Data from FDD filing
FranchiseVerdict summary · 2026
A CBD American Shaman franchise requires a total initial investment of $88K – $184K, including a $10K franchise fee. The 2024 FDD does not disclose unit-level revenue (no Item 19). Verdict grade: B. Run a live ROI scan →
Data last verified June 18, 2026 · figures per the 2024 FDD issuance
Overview
- Investment
- $88K – $184K
- 7th pct Retail
- Avg gross sales
- N/A
- 21st pct Retail
- Royalty
- N/A
- Units
- 212
- 33rd pct Retail
- SBA default
- N/A
Quick verdict · Retail · color = vs category peers
Green = >15% above Retail avg · No shading = within ±15% · Red = >15% below avg · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
Franchised units fell from 241 to 169 over 3 years. Investigate why operators are leaving.
The franchisor's auditor raised doubt about continued operations. This is a serious risk signal.
Bottom line
- Total investment $88K – $184K including a $10K franchise fee.
- No Item 19 financial performance data disclosed. The franchisor chose not to publish revenue figures.
- Verdict B (Above Average) with a risk score of 55/100.
- Auditor disclosed a going-concern note, which flagged doubt about the franchisor's ability to continue operations. Verify against the latest FDD.
Item 1 · who you're contracting with
The Franchisor
- Legal entity
- American Shaman Franchise System, LLC
- Parent company
- SVS Enterprises, LLC
- Incorporated in
- NV
- HQ
- 1501 Iron Street, North Kansas City, MO 64116
- Auditor
- Marr and Company, P.C.
- Audited financials
- Franchisor revenue
- $3.5M
- vs $2.8M prior year
- ⚠ Going-concern note
- Disclosed in FDD 2024
- Status as of 2024; may have been resolved in a later filing we don't yet have.
Overview
About
CBD American Shaman franchisees operate retail locations selling CBD-infused products including tinctures, edibles, topicals, and wellness items. Day-to-day operations involve inventory management, customer retail service, product education, local marketing, and compliance with evolving state and federal CBD regulations. Franchisees manage staffing, lease obligations, and point-of-sale systems within their unprotected territories.
- CEO
- Stephen Vincent Sanders
- Headquarters
- MO
- Founded
- 2017
- FDD year
- 2024
- States available
- 23
FDD Item 7 · 2024 filing · 12 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
- Better than avg vs category
- Liquid capital req'd
- $16K – $32K
- Better than avg vs category
- Franchise fee
- $10K – $10K
- Better than avg vs category
- Royalty
- Up to 6% of Gross Revenue
- Ad fund
- $800
- 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 |
Financial Performance
This franchisor did not disclose financial performance representations in Item 19, or our extractor could not parse them.
vs Retail averages
How CBD American Shaman Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 212
- Opened
- 6
- Last reporting year
- Closed
- 43
- Turnover rate
- 20.3%
- Company-owned
- 43
- Corporate units in the system
- % franchised
- 80%
- vs corporate-owned
- Net growth (yr3)
- -18.4%
- Net unit change last year
- 3-yr CAGR
- -29.9%
- Compounded over last 3 years
3-year detail · Item 20
- Closed (3yr)
- 63
- Terminated (3yr)
- 9
- Non-renewed (3yr)
- 0
- Transfers (3yr)
- 9
- Reacquired (3yr)
- 3
- Franchisor bought back
- 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 20 · 22 states with active franchisees
The Territory Map
Derived from franchisee contact records. Shows states with at least one current operator. Not where the franchisor is registered to sell new units (that data is re-extracting in a future refresh).
States derived from franchisee contact records (FDD Item 20). Shows states with at least one current operator on file. Full state registration data (Item 12) will appear on a future FDD refresh.
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.
Risk analysis
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
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)
0 case reference(s): 3 pending, 0 settled.
Bankruptcy (Item 4)
Disclosed in last 7 years
Bankruptcy Code; (b) obtained a discharge of its debts under the bankruptcy code; or (c) was a principal officer of a company or a general partner in a partnership that either filed as a debtor (or had filed against it) a petition to start an action under the U.S. Bankruptcy Code or that obtained a
Audited financials (Item 21)
Yes · Marr and Company, P.C.⚠ Going-concern note flagged
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Supplier relationship · Items 8 & 16
- Franchisor sells you products: No
- Must buy proprietary products: No
- Restricted to system-approved products: No
Score breakdown · what drove the 55 / 100 rating
- 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
- 06HIGHGoing concern status indicates potential financial distress at corporate level, threatening support and franchisor stability
- 07MED6% 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
FDD Items 5, 6, 12, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 5 years |
|---|---|
| Renewal term | 5 years |
| Allowed renewalsℹ | 1 |
| Protected territory | No |
| Online sales rightsℹ | Granted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Required |
| Non-compete (years)ℹ | 2 years |
| Right of first refusalℹ | Yes |
| Termination notice | 3 days |
| Mandatory arbitration | Yes |
| Jury trial waiver | Yes |
| Governing law | Missouri |
| Litigation count | 5 |
View Item 3 litigation summary
0 case reference(s): 3 pending, 0 settled.
Items 10, 11
Training & Operations
- Classroom training
- 29 hrs
- On-the-job training
- 24 hrs
- Training location
- Franchisor's facility and on-site
- Site selection
- franchisee
Items 5 & 11
Franchisor Support
Item 20 · call current owners
Franchisee Contacts
100 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
CBD American Shaman · FDD (2024) PDF
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 does not disclose average franchise owner earnings in their FDD Item 19. Not all franchisors are required to make financial performance representations. We recommend asking existing franchisees directly about their financial experience.
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 241 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 B-grade franchise with a risk score of 55 out of 100, based on our analysis of investment costs, revenue data, SBA loan performance, and growth trends. 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
Are you the franchisor?
If you represent CBD American Shaman, you can request corrections or provide updated information.
Claim this brandOther Retail franchises
Compare similar franchise opportunities in the Retail category
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.