FranchiseVerdict
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FV-00487·MODERATEStandard76

Cereset

Health & Wellness - OtherFranchising since 2018Website
Investment
$103K – $227K
25th pct Other
Avg revenue
63rd pct Other
Royalty
Units
59
72nd pct Other
SBA default
0.0%
vs <3% typical

Bottom line

  • Total investment $103K – $227K including a $35K franchise fee.
  • No Item 19 financial performance data disclosed — the franchisor chose not to publish revenue figures.
  • Rated MODERATE with a risk score of 62/100. SBA loan default rate of 0.0% across 6 loans (below the industry average).
  • System growing at 28.9% CAGR over 3 years with 59 total units — strong expansion trajectory.

Item 1 · who you're contracting with

The Franchisor

Legal entity
Cereset, LLC
Parent company
Brain State Holding Company Inc.
Incorporated in
Arizona
HQ
15150 N. Hayden Road, Scottsdale, Arizona 85260
Auditor
BAS PARTNERS
Audited financials
Franchisor revenue
$1.1M
vs $1.1M prior year

Yale framework · single-unit ROIC

Returns Analysis

Pulls Item 7 (investment) and Item 19 (revenue) from this brand's FDD into the Yale unlevered-ROIC formula. Override any input to stress-test it against your own assumptions.

The model · Yale framework

What would one CERESET unit return on the cash you put in?

Revenue · per unit, per year
$
Item 19 not disclosed — typing your own estimate
Franchisor take · royalty + ad fund
Royaltytyp 68%
%
Ad fundtyp 35%
%
Operating costs · category default: personal services
COGS
%
Labor
%
Rent / occupancy
%
Other operating
%
Total invested capital · what you actually put in
Initial investment
$
FDD Item 7: $103K–$227K
Working capital
$
FDD reports $9K–$50K

Unlevered ROIC · per unit

85%

Above typical band (30–60%)

0%30–60% Yale band80%

Store EBITDA · annual
$165K
EBITDA margin
22.0%
Total invested
$194K
Payback
14 mo
Unit-level only. A multi-unit portfolio gives up roughly 5–15% of this to shared services (corporate G&A) before reaching the ~10-unit break-even Yale describes.

Overview

About

CERESET franchisees operate neurotechnology wellness clinics offering non-drug brain-based therapy using proprietary EEG and neurofeedback systems to treat sleep disorders, anxiety, ADHD, and other neurological conditions. Day-to-day operations include patient intake/consultation, administering EEG assessments, conducting 1-on-1 or group neurofeedback sessions, maintaining equipment, and managing billing. Franchisees typically employ clinical staff and may perform treatments themselves depending on their licensing background.

CEO
Russell Scholl
Founded
2018
FDD year
2025
States available
28

Item 7 · what it costs

The Vitals

Total investment
$103K – $227K
All-in to open one unit
Liquid capital
$9K – $50K
Cash you must have on hand
Franchise fee
$35K
Royalty
Greater of (a) 8% of monthly Gross Sales or (b) $500 per …
Ad fund
2.0%
typical 3–5%
Total fee load
10.0%
vs 9–13% typical

Item 19

Financial Performance

This franchisor did not disclose financial performance representations in Item 19, or our extractor could not parse them.

Item 20 · unit dynamics

The Growth Chart

Total units
59
Opened
8
Last reporting year
Closed
4
Turnover rate
6.8%
Company-owned
1
Corporate units in the system
% franchised
98%
vs corporate-owned
Net growth (yr3)
+7.4%
Net unit change last year
3-yr CAGR
+28.9%
Compounded over last 3 years
2023
58+4
Franchised units
2024
54
Franchised units
2025
45
Franchised units

Year-over-year franchised unit counts and net change. Source: FDD Item 20.

Item 20 · 28 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).

AK
ME
VT
NH
MA
RI
CT
NY
NJ
PA
DE
MD
DC
WA
OR
CA
NV
ID
MT
WY
UT
CO
AZ
NM
ND
SD
NE
KS
OK
TX
MN
IA
MO
AR
LA
WI
IL
MS
TN
MI
IN
KY
AL
OH
WV
GA
VA
NC
SC
FL
HI
Registered · 28 states
Not registered

States derived from franchisee phone area codes (Item 20). Approximate — ported numbers may show the original state, not the franchisee's current location.

Government records

SBA Loan Data

Aggregated from SBA 7(a) loan disclosures, public data unique to FranchiseVerdict.

Total loans
6
Loan volume
Avg loan
Default rate
0.0%
vs <3% typical · system-wide
5-yr default

FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17

Risk & Legal

62
Risk · 0-100
MODERATE62 / 100

CERESET presents meaningful investment risk due to absent financial disclosures, going concern status, unprotected territory, anemic growth, and high minimum royalties on an undisclosed revenue base.

Score breakdown · what drove the 62 / 100 rating

  1. 01MEDNo Item 19 financial disclosure (average revenue and net income not disclosed) — impossible to validate ROI claims
  2. 02HIGHGoing Concern status is False, indicating potential financial instability at franchisor level
  3. 03MINORUnprotected territory creates direct competition risk; multiple franchisees could cannibalize same market
  4. 04MINORSlow unit growth (7.4% YoY) suggests market saturation, franchisee struggles, or weak brand momentum
  5. 05MINORHigh minimum royalty floor ($500/month = $6,000/year) creates cash drain even during slow revenue months
  6. 06MEDInvestment range of $102,900–$226,600 is substantial with no disclosed average unit economics to justify it
  7. 07MED59-unit system is small and fragmented; limited operational support infrastructure likely

Severity inferred from the FDD text · not a regulatory classification

FDD Items 5, 6, 12, 17 · continued from Risk & Legal

Contract & Territory Detail

Territory
MSA
Protected territory
No
Initial term
5 years
Renewal term
5 years
Online sales rights
Restricted
Franchisor can compete
Yes
Hire a manager?
Allowed
Litigation count
0
Right of first refusal
Yes
Franchisor can buy back on resale
Mandatory arbitration
Yes
Jury trial waiver
Yes
Non-compete
2 yrs
Post-termination restriction
Owner-operator
Optional
Governing law
Arizona

Item 11

Training & Operations

Classroom training
81 hrs
On-the-job training
31 hrs
POS system
MINDBODY
Operating tech stack

Item 20

Franchisee Contacts

Phone numbers extracted directly from this brand's FDD Item 20. After purchase, you'll also receive a list of validation questions tailored to this brand.

Franchisee contacts

59 numbers

Locked
(615) 626-••••
TN
(208) 779-••••
ID
(703) 517-••••
VA

One-time purchase · CSV download · Validation questions included

FDD download

CERESET · FDD (2025) PDF

Single-page checkout · instant download · CSV export of contacts available separately above