Franchising your cannabis store or cannabis delivery business can be a great way for growth.
If you are an entrepreneur and you have one, two or even three operations, why should you be thinking about franchising? There are many reasons, but here are the top 5:
- I have a brand that I want to expand but lack the capital to do it by myself. Franchising your cannabis store or cannabis delivery business provides you with the vehicle to expand using the capital of others, your franchisees.
- I want to expand rapidly. Franchising cannabis store or cannabis delivery business provides you with the ability to grow faster than if you opened units on your own.
- I don’t have the human resources to open units on my own. As a franchisor, that is not your responsibility, it is the franchisee who has to staff each location, not the franchisor.
- There is a great deal of competition in my “space” and I need to move my brand out. Franchising will provide the speed to market necessary to join the space and be competitive in your marketplace.
- I need an exit strategy, how can I sell my cannabis store or cannabis delivery business with only a few company owned units? Franchisors have a open path to exit by selling the company or even going public, whereas a small company owned system does not have this capability.
Having a successful business can be overwhelming by itself adding more locations and franchisees can add to the growth of the business or kill the business if you are not prepared:
- Start with the legal documents, like the disclosure document and the agreements
- Then includes a financial statement of the franchising company
- Detailed operations manual and marketing materials
- Website that contains a section devoted to franchising.
The negatives to franchising your business are few and are outweighed by the overall benefits of what can be accomplished with the franchise model. While there are costs associated with putting together a franchise program, these costs are minimal in the grand scheme of growing a brand into a national chain.