Not sure if MMI-CPR, LLC is right for you?
Talk to a Franchise Advisor who can match you with your perfect franchise based on your goals, experience, and investment range.
Talk to an Expert
CPR (Cell Phone Repair)
How much does CPR (Cell Phone Repair) cost?
Initial Investment Range
$104,750 to $310,400
Franchise Fee
$35,900
We offer a franchise to operate cell phone repair businesses within specified geographic areas using the “CPR” marks that provide repair services we authorize for smartphones, cell phones, laptops, game systems and other electronic devices and sell refurbished mobile devices and accessories.
Enjoy our partial free risk analysis below
Unlock the full risk analysis to access 9 more categories covering 100+ risks.
CPR (Cell Phone Repair) March 28, 2025 FDD Risk Analysis
Free FDD Library AI Analysis Date: July 16, 2025
DISCLAIMER: Not Legal Advice - For Informational Purposes Only. Consult With Qualified Franchise Professionals.
Franchisor Stability Risks
Start HereDisclosure of Franchisor's Financial Instability
High Risk
Explanation
The franchisor's parent, SOSI CPR LLC, has incurred net losses for the past three fiscal years, as shown in the Item 21 financial statements. The FDD flags "Financial Condition" as a special risk. While the parent company provides a performance guarantee and has positive equity from capital contributions, these consistent operating losses may raise questions about the long-term ability to support franchisees without continued external funding.
Potential Mitigations
- A franchise accountant should thoroughly analyze the audited financial statements, including all footnotes and the parent company's guarantee.
- Discuss the franchisor's plan for achieving profitability and its continued access to capital with your business advisor.
- Your attorney should review the terms of the parent guarantee to understand the scope of the protection it offers.
High Franchisee Turnover
High Risk
Explanation
Item 20 data reveals a significant and consistent franchisee turnover rate over the last three years, with a calculated churn of approximately 11.8% in 2024. The franchisor explicitly lists "Franchise Turnover" as a special risk. This level of turnover could indicate systemic challenges, franchisee dissatisfaction, or issues with profitability, posing a substantial risk to your potential success within the system.
Potential Mitigations
- It is critical to contact a significant number of former franchisees listed in Item 20 to understand their reasons for leaving the system.
- An accountant should help you analyze the turnover data across all categories (terminations, cessations, non-renewals) to assess the true churn rate.
- Your business advisor can help you investigate if the high turnover is linked to specific market conditions, operational issues, or franchisor support problems.
Rapid System Growth
Medium Risk
Explanation
After several years of contraction, Item 20 projects a significant increase in new outlets for the upcoming year. While growth can be positive, this planned rapid expansion, combined with the franchisor's history of financial losses detailed in Item 21, could potentially strain support systems, including training, site selection, and ongoing operational assistance for all franchisees.
Potential Mitigations
- Questioning the franchisor on their specific plans to scale support infrastructure to match projected growth is a topic for discussion with your business advisor.
- A review of the franchisor's balance sheet with your accountant can help assess if they have the necessary capital to fund expansion without diminishing franchisee support.
- You should ask existing franchisees about the current quality and responsiveness of the support they receive.
New/Unproven Franchise System
Low Risk
Explanation
This specific risk was not identified in the FDD package. An unproven franchise system can present risks because its business model, support structures, and brand recognition have not yet stood the test of time. New franchisors may lack the experience and resources to adequately support their franchisees through challenges, potentially leading to higher failure rates.
Potential Mitigations
- Engaging a business advisor to research the franchisor's history and the track record of its management team is a prudent step.
- An attorney can help investigate if the franchisor is a newly formed entity designed to insulate a parent company from liability.
- An accountant should carefully review the financials for signs of undercapitalization, which is common in new systems.
Possible Fad Business
Low Risk
Explanation
This specific risk was not identified in the FDD package. Investing in a business based on a temporary trend or fad can be risky. Once public interest wanes, demand can drop sharply, leaving you with a failing business but ongoing contractual obligations, such as royalty payments and a long-term lease. It is important to assess if the core product or service has sustainable, long-term consumer demand.
Potential Mitigations
- A business advisor can help you conduct independent market research to assess the long-term demand for the products and services.
- Reviewing the franchisor’s plans for research and development with your attorney can provide insight into its strategy for staying relevant.
- Consider the business's resilience to economic downturns and changing consumer tastes with your financial advisor.
Inexperienced Management
Low Risk
Explanation
The management team disclosed in Item 2 appears to have significant experience in the retail and service industries, including time with the parent company, Assurant. However, you should still verify that their experience is directly relevant to supporting a franchise network of small business owners, not just managing corporate operations.
Potential Mitigations
- A thorough review of the executive biographies in Item 2 with your business advisor is important to assess their specific franchising experience.
- Speaking with current franchisees about their direct experiences with the management team can offer valuable insights.
- Your attorney can help you formulate questions for the franchisor about the management team's direct involvement in franchisee support.
Private Equity Ownership
Medium Risk
Explanation
The franchisor is ultimately owned by Assurant, Inc., a publicly traded company. This ownership structure can sometimes lead to decisions that prioritize shareholder value and short-term returns over the long-term health of individual franchisees. The Franchise Agreement also permits the franchisor to sell or assign the entire system, which could result in a new owner with a different philosophy or less experience.
Potential Mitigations
- It is wise to research the parent company's reputation and its track record with other brands or franchise systems it may own.
- Consulting your attorney to understand the implications of the assignment clause is crucial for assessing risks related to a potential sale of the franchise system.
- Discussing any observed changes in support or strategy since the acquisition with long-term franchisees can provide valuable context.
Non-Disclosure of Parent Company
Low Risk
Explanation
The franchisor, MMI-CPR, LLC, is a subsidiary of SOSI CPR LLC, which is ultimately owned by Assurant, Inc. The FDD discloses this relationship and provides the financial statements for the guarantor, SOSI CPR LLC, as required. This structure appears transparent, but your success is tied to the health and decisions of these parent entities.
Potential Mitigations
- Your accountant should review the provided financial statements of the parent entity, SOSI CPR LLC, with the same diligence as the franchisor's own.
- Understanding the terms and strength of the parent's guarantee of performance is a key task for your attorney.
- A business advisor can help you research the public parent company, Assurant, Inc., to understand its overall strategy and financial health.
Predecessor History Issues
Low Risk
Explanation
Item 1 discloses that the current franchisor purchased the system from a predecessor, CPR-Cell Phone Repair Franchise Systems, Inc., in 2013. This change in ownership is a key part of the system's history. It's important to consider that the culture, support, and operational focus may have changed since the acquisition.
Potential Mitigations
- Inquiring with franchisees who have been with the system since before the 2013 acquisition can provide valuable insight into any changes.
- A business advisor can help you research the reputation and track record of the predecessor entity if possible.
- Your attorney should carefully review Items 3 and 4 for any litigation or bankruptcy history related to the predecessor.
Pattern of Litigation
High Risk
Explanation
Item 3 discloses a substantial pattern of litigation, including two putative class-action lawsuits and over 30 individual arbitration demands filed by franchisees. The claims consistently allege breach of contract, fraud, and deceptive practices, primarily related to mandatory suppliers and lack of support. This widespread legal conflict with franchisees suggests significant, systemic dissatisfaction and presents a major risk.
Potential Mitigations
- Your attorney must carefully review the details, allegations, and current status of all disclosed litigation and arbitration in Item 3.
- Treating this extensive history of franchisee disputes as a significant red flag is a crucial part of due diligence advised by legal counsel.
- You should discuss these legal issues with current and former franchisees to understand their perspective and experiences.
Disclosure & Representation Risks
Example Risk: Franchisee Financial Obligations
Blue Risk
Explanation
This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.
Potential Mitigations
- Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
- Conduct regular risk assessments
- Implement monitoring and reporting systems
Unlock Full Risk Analysis
Purchase the complete risk review to see all 102 risks across all 10 categories.
Financial & Fee Risks
Example Risk: Franchisee Financial Obligations
Blue Risk
Explanation
This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.
Potential Mitigations
- Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
- Conduct regular risk assessments
- Implement monitoring and reporting systems
Unlock Full Risk Analysis
Purchase the complete risk review to see all 102 risks across all 10 categories.
Legal & Contract Risks
Example Risk: Franchisee Financial Obligations
Blue Risk
Explanation
This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.
Potential Mitigations
- Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
- Conduct regular risk assessments
- Implement monitoring and reporting systems
Unlock Full Risk Analysis
Purchase the complete risk review to see all 102 risks across all 10 categories.
Territory & Competition Risks
Example Risk: Franchisee Financial Obligations
Blue Risk
Explanation
This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.
Potential Mitigations
- Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
- Conduct regular risk assessments
- Implement monitoring and reporting systems
Unlock Full Risk Analysis
Purchase the complete risk review to see all 102 risks across all 10 categories.
Regulatory & Compliance Risks
Example Risk: Franchisee Financial Obligations
Blue Risk
Explanation
This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.
Potential Mitigations
- Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
- Conduct regular risk assessments
- Implement monitoring and reporting systems
Unlock Full Risk Analysis
Purchase the complete risk review to see all 102 risks across all 10 categories.
Franchisor Support Risks
Example Risk: Franchisee Financial Obligations
Blue Risk
Explanation
This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.
Potential Mitigations
- Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
- Conduct regular risk assessments
- Implement monitoring and reporting systems
Unlock Full Risk Analysis
Purchase the complete risk review to see all 102 risks across all 10 categories.
Operational Control Risks
Example Risk: Franchisee Financial Obligations
Blue Risk
Explanation
This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.
Potential Mitigations
- Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
- Conduct regular risk assessments
- Implement monitoring and reporting systems
Unlock Full Risk Analysis
Purchase the complete risk review to see all 102 risks across all 10 categories.
Term & Exit Risks
Example Risk: Franchisee Financial Obligations
Blue Risk
Explanation
This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.
Potential Mitigations
- Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
- Conduct regular risk assessments
- Implement monitoring and reporting systems
Unlock Full Risk Analysis
Purchase the complete risk review to see all 102 risks across all 10 categories.
Miscellaneous Risks
Example Risk: Franchisee Financial Obligations
Blue Risk
Explanation
This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.
Potential Mitigations
- Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
- Conduct regular risk assessments
- Implement monitoring and reporting systems
Unlock Full Risk Analysis
Purchase the complete risk review to see all 102 risks across all 10 categories.