The fastest growing industry in the U.S. job market today is cannabis, according to industry experts Leafly and Whitney Economics. Franchising, they say, is not only the natural way to grow the industry, but also the way to meet consumer demands for cannabis and CBD products.
According to Marijuana Venture, the journal of professional cannabis growers and retailers, for a “promoter looking to capitalize on cannabis’ meteoric rise, franchising a branded cannabis chain solves the two biggest roadblocks to any business expansion: capital and labor.”
Franchising, the site explains, lets a cannabis brand expand its footprint without taking on any debt by using the franchisees’ money. The brand awards a trademark license to the franchisee allowing them to own and operate their own cannabis business. They hire and supervise their own staff while adhering to the brand standards of the franchisor.
Franchisees pay licensing fees off the top of their profits. They receive training, marketing tools and the purchasing power of a larger network to reduce overhead costs for inventory and supplies.
The items cannabis franchises offer will vary from various cannabis flower products, medical cannabis, pain-relieving cannabis topicals, edibles and oils.
The nature of the product, however, can create barriers all its own due to the lingering prohibition of cannabis under U.S. federal law. According to Forbes.com, even though cannabis may be legal in the state where you operate, it is still illegal at the federal level, and the feds could shut you down. “Operating a legal cannabis franchise is basically a dice-roll,” they write.
As a franchising consultant, I will work through all the intricacies of cannabis franchising with you so that you can make an informed decision.
So, if you’re looking to profit from the marijuana boom that’s projected to be worth up to $87 billion this year, give me a call.