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Serotonin Centers

Serotonin Enterprises LLC
https://www.serotonincenters.com
1-833-737-6866
7790 Wintergarden Vineland Rd, Suite 100, Windermere, FL 34786

How much does Serotonin Centers cost?

Initial Investment Range

$872,284 to $2,929,879

Franchise Fee

$79,390 to $971,385

The franchise offered is for the management system and operation of an anti-aging center that provides wellness services we authorize from time to time, including cosmetic injectables, hormone replacement therapy, medical weight loss and vitamin IV infusions.

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Serotonin Centers April 30, 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.

1

Franchisor Stability Risks

Start Here
Total: 10
4
1
5

Disclosure of Franchisor's Financial Instability

High Risk

Explanation

The financial statements for Serotonin Enterprises LLC (Serotonin) show significant and recurring net losses and a substantial members' deficit, reaching over $4.2 million by year-end 2024. This financial weakness required Serotonin to accept fee deferral conditions in multiple states. This condition raises questions about its ability to fund operations and support franchisees long-term without relying on new franchise sales, which is a significant risk to your investment.

Potential Mitigations

  • A franchise accountant must conduct a deep analysis of the audited financial statements, including all notes, to assess the company's viability.
  • It is critical for your attorney to review the fee deferral requirements mentioned in the state addenda and explain their implications.
  • Discuss the franchisor's plan to achieve profitability and its current cash flow situation with your business advisor before proceeding.
Citations: Item 4, FDD Cover Page, Item 21, Exhibit E, FA Schedule 7

High Franchisee Turnover

High Risk

Explanation

Item 20 data from 2024 reveals a high franchisee termination rate. With a base of two units at the start of the year and six new units opened, two units also terminated. This represents a termination rate of 25% of all units that were part of the system during the year. Such a high turnover rate in a young franchise system could be a strong indicator of potential franchisee dissatisfaction, unprofitability, or other systemic issues.

Potential Mitigations

  • Engaging a business advisor to help you contact and interview the former franchisees listed in Exhibit F is crucial to understand why they left.
  • Your accountant should analyze the turnover data in Item 20 to calculate the churn rate and discuss its potential impact on your risk.
  • An attorney can help you formulate specific questions for the franchisor regarding the circumstances of these terminations.
Citations: Item 20

Rapid System Growth

High Risk

Explanation

The franchisor is growing rapidly, with plans for many new units as noted in the financials and Item 20. However, this growth is occurring while the company is reporting significant net losses and has a large members' deficit. Rapid expansion without a strong financial foundation could strain Serotonin's ability to provide adequate training, site selection assistance, and ongoing operational support to all franchisees, potentially diluting the quality of support you receive.

Potential Mitigations

  • In discussions with current franchisees, it is important to ask about the quality and timeliness of the support they currently receive.
  • A business advisor can help you question the franchisor about their specific plans to scale their support infrastructure to match unit growth.
  • Your accountant should evaluate whether the franchisor's financial resources, as shown in Item 21, appear adequate to support this planned expansion.
Citations: Item 20, Item 21, Exhibit E

New/Unproven Franchise System

High Risk

Explanation

Serotonin is a very young franchise system, having only begun offering franchises in July 2021. The FDD discloses a limited operating history, minimal brand recognition, and a small number of operating units. As explicitly stated in the 'Special Risks' section, investing in such an early-stage system carries a higher risk because the business model, support systems, and long-term franchisee profitability are not yet fully proven.

Potential Mitigations

  • Your business advisor should help you conduct extensive due diligence on the long-term viability of the business concept.
  • It is essential to speak with the earliest franchisees listed in Item 20 to learn about their experiences with the developing system.
  • An attorney may be able to negotiate more favorable terms, such as enhanced support commitments, to help offset the higher risk.
Citations: Item 1, Item 2, Item 20, Item 21, FDD Cover Page

Possible Fad Business

Low Risk

Explanation

This risk was not identified in the FDD package. However, a fad business is one tied to a fleeting trend rather than sustained consumer demand. Investing in a fad carries the risk of business failure once public interest wanes, even though your contractual obligations to the franchisor would continue. Evaluating a concept's long-term market relevance is a key piece of due diligence.

Potential Mitigations

  • Engaging a business advisor to research the long-term market trends for anti-aging and wellness services is a prudent step.
  • It is wise to assess the franchisor's commitment to research and development in Item 11 to see how they plan to adapt to future market changes.
  • Your financial advisor can help you model the business's potential performance under various market scenarios.
Citations: Item 1, Item 11

Inexperienced Management

Low Risk

Explanation

This risk was not identified in the FDD package. The executive team described in Item 2 appears to have prior experience in the franchising and health/wellness industries. However, it is always important to assess if management's specific expertise aligns with the support needs of franchisees. Inexperienced leadership can lead to weak support, poor strategic decisions, and a higher risk of system failure.

Potential Mitigations

  • A business advisor can help you research the backgrounds of the key executives listed in Item 2 to verify their experience.
  • Asking current franchisees about their direct experiences with the management team's competence and support is a valuable step.
  • Your attorney can help you understand what contractual commitments for support are in place if the management team changes.
Citations: Item 2

Private Equity Ownership

Low Risk

Explanation

This risk was not identified in the FDD package, as there is no disclosure of private equity ownership in Item 1. However, if a franchisor is owned by a private equity firm, there could be a focus on short-term profits over the long-term health of the brand. This can sometimes lead to reduced franchisee support, increased fees, or a sale of the system, which could change the nature of the franchise relationship.

Potential Mitigations

  • If a franchisor were owned by a private equity firm, your business advisor could help research the firm's history with other franchise brands.
  • It would be important to have your attorney review the assignment clauses in the Franchise Agreement to understand your rights if the system is sold.
  • Speaking with franchisees who have been in the system through ownership changes would provide valuable insight.
Citations: Item 1, Item 17

Non-Disclosure of Parent Company

Medium Risk

Explanation

The FDD discloses that Serotonin has a parent company, Longevity Brands, LLC. Financial statements for the parent are not provided. However, the parent company is also the primary lender to the franchisor via a $500,000 note. While this indicates financial support, the absence of the parent's financials means you cannot fully assess the ultimate financial strength and stability behind the Serotonin brand, which presents a degree of risk.

Potential Mitigations

  • Your accountant should review the provided financials and the terms of the related-party debt from the parent company.
  • It is advisable to ask your attorney about the implications of the parent company not providing a direct guarantee for the franchisor's obligations.
  • In discussions with the franchisor, you could ask about the financial health of the parent company.
Citations: Item 1, Item 21, FA Schedule 3

Predecessor History Issues

Low Risk

Explanation

This risk was not identified in the FDD package. Serotonin Enterprises LLC is a new entity and does not disclose any predecessors. In general, if a franchisor acquired its system from a predecessor, it's important to review the predecessor's history for issues like litigation, bankruptcy, or high franchisee turnover, as these problems could be inherited by the new ownership.

Potential Mitigations

  • An attorney can help verify the franchisor's corporate history as stated in Item 1.
  • When a predecessor exists, researching public records and news archives for information about that entity can be a useful step for your business advisor.
  • Asking long-term franchisees about their experiences under any previous ownership is a key part of due diligence.
Citations: Item 1, Item 3, Item 4, Item 20

Pattern of Litigation

Low Risk

Explanation

Item 3 of the FDD states, "No litigation information is required to be disclosed in this Item." This indicates there is no current, pending, or past litigation against the franchisor that meets the specific disclosure requirements of franchise law (e.g., involving claims of fraud, violation of franchise law, or material actions). While this is positive, it does not mean no disputes have ever occurred.

Potential Mitigations

  • An attorney can confirm the scope of what must be disclosed in Item 3 and advise that its absence is generally a positive sign.
  • It remains a good practice to ask current and former franchisees about any disputes they may be aware of, even if not disclosed in Item 3.
  • Your business advisor can conduct online searches for any news or public discussion of disputes involving the franchisor.
Citations: Item 3
2

Disclosure & Representation Risks

Total: 15
7
2
6

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

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3

Financial & Fee Risks

Total: 10
5
4
1

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

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4

Legal & Contract Risks

Total: 16
10
4
2

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.

5

Territory & Competition Risks

Total: 5
2
3
0

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.

6

Regulatory & Compliance Risks

Total: 10
6
1
3

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.

7

Franchisor Support Risks

Total: 4
2
1
1

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.

8

Operational Control Risks

Total: 12
4
7
1

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.

9

Term & Exit Risks

Total: 18
10
7
1

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.

10

Miscellaneous Risks

Total: 2
2
0
0

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.