CBD Franchises are Booming, But How Long Can It Last Now?

2/9/2021 CBD Franchises are Booming, but How Long Can They Last with Federal Marijuana Legalization Looming?
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CBD Franchises are Booming, but How
Long Can They Last with Federal
Marijuana Legalization Looming?
Will CBD franchises be left in the dust once THC is removed from the Controlled Substance Act
Posted by:
Joseph Billions , today at 12:00am
CBD Franchises are Booming, But How Long Can They
Last?

The growth of CBD (https://cannabis.net/blog/medical/what-is-cbd-or-cannabidiol) recently has been astonishing given
how little was known about the bene cial compound a couple of years ago. Many patients who went through horri c
events and su ered Post Traumatic Stress Disorder (PTSD) afterward have had to rely on CBD for help. PTSD is a major
condition that is associated with other problems like depression, anxiety, and panic attacks. Thankfully, CBD is also
useful against these symptoms which makes the uses of CBD for PTSD multifaceted. CBD is also used for a host of other
medical conditions including pain, in ammation, insomnia, and so on. These extremely useful therapeutic applications
of CBD coupled with the calm relaxing feeling it induces has been the major factors driving CBD to the very top. In the
world today, CBD has become very popular not just in the medical world but in other sectors as well.
The popularity of CBD (https://cannabis.net/blog/opinion/is-cbd-more-popular-online-than-beyonce-and-kim-
kardashian) has resulted in the growth of the CBD industry as more people are looking to the cannabinoid for medical
help. Though research on some medicinal bene ts of CBD is still in its early stage, the personal experiences of a lot of
patients are making many bank on CBD. This has been the basis for the growth of the CBD industry and has seen many
entrepreneurs invest in CBD. Some are going into the industry to help others due to their personal experience with CBD
while others are going in on CBD just for the economic bene ts, and who are we to judge, CBD is a burgeoning industry
that every smart entrepreneur should be looking to be a part of. A good example of an individual who got into CBD
because of personal experiences is the story of Lauren Lerch, an entrepreneur who already has a CBD franchise with
three stores.
A Detailed Look at The Growth of CBD Franchises
Franchising in CBD has surged rapidly with the growth of the CBD industry. The CBD industry is estimated to rack up
sales as high as $20 billion by 2024. This projection is the major reason why many franchises are spreading their wings
to establish themselves more in the industry. CBD American Shaman (https://www.franchise.com/franchise/cbd-
american-shaman#:~:text=To%20open%20a%20CBD%20American,depending%20on%20the%20market%20area.) and
Your CBD Store are the two biggest CBD franchises in the US. They both launched in 2018 and they grow up to 319 and
550-plus units respectively.
Your CBD Store initially started in the CBD industry with a licensed distribution model. Thereafter, a change was made
to the franchising system it now operates. The year 2020 saw the introduction of 6 new franchises in the CBD industry.
This shows that CBD franchising is steadily booming are more people are jumping on the bandwagon. However, the

issue of how long these franchises can last remains a problem hanging over the heads of many. Read on to nd out the
answer to this million-dollar question.
Can these franchises last?
There are some peculiarities and factors around the CBD industry that makes the question 'how long can retail stores
and franchises survive in the industry' a very interesting one. First on that list is the issue of trust in the CBD industry.
Even though CBD is surging in popularity, many customers still don’t know much about CBD. A survey by Morning
Consult shows just how much people know about CBD. One-third of the participants in the survey believe that CBD is
similar to marijuana. 39% also believe that CBD is illegal in America. This survey shows that many people do not know
what CBD is and this is a major issue.
Some unscrupulous sellers capitalize on the confusion of customers around cannabis to make explosive sales. They do
this by making unfounded claims about the product and also selling substandard products that are not what they say
they are. A recent study by the FDA showed that half of the CBD products they tested were labeled inaccurately. Some
had less CBD than what was stipulated and others have a notable concentration of THC that can give a euphoric high.
Another issue hanging over the heads of CBD franchises is the issue of sustainability. Physical stores are no longer as
sustainable as they once were. The growth of e-commerce activities is rapidly changing the landscape and
entrepreneurs have to adapt accordingly. Retail purchases of CBD products can easily be done online as purchases of
supplements are done. This reality is very evident as GNC in 2020 declared a $200 million loss despite being a giant of
pills and potions. Inevitably, the group had to le for Chapter 11 bankruptcy protection by June. A survey prior to the
development of COVID-19 was done to see consumer behavior and how they make purchases. 45% of CBD users make
purchases through online stores while 48% made purchases physically in stores and dispensaries. This changed with
the pandemic as another survey by the Bright eld Group shows more consumers are making purchases online. So to
answer the question 'can these franchises last?' Sure they can, if they can adapt.
How do franchises tend to cope?

CBD franchises saw some of these issues coming and some of them have put e ective mechanisms in place to shield
them from the negative impact and ensure they survive in the industry. CBD franchises o er vetting for their stores and
employees to ensure the information they o er is more than what you nd online. They also ensure that their products
are tested by a third party to ensure the products are what they say they are. Attendants in franchises are well trained
on how to guide customers through the product selection process. New stores are also tied to veteran store owners to
help educate them.
It's not easy to start a business in the CBD industry as there are several loopholes around the industry that can put
businesses in trouble. Though the 2018 Farm Bill legalized hemp-derived CBD (https://cannabis.net/blog/news/the-
2018-farm-bill-5-key-things-to-know), there are still some state-speci c laws that can cause issues. CBD franchises have
standard legal services that help protect their stores from legal issues that can easily a ect independent retail stores.
These legal services protect the franchise from liability and o er nancial protection.
CBD franchises also have well augmented physical and online presence for their stores. Your CBD Store has a unique
web page for their services likewise CBD American Shaman, CBD Authority, and many others. The goal of maintaining a
strong online presence is not just to have heavy tra c in their stores but to have customers loyal to the brand. Once
loyalty is established, customers can easily make purchases either physically at stores or virtually online.
Bottom line
By constantly educating customers and providing su cient services, loyalty to franchises can easily be achieved. Once
you have the loyalty of your customers the sky is the limit.
DISPENSARIES SERVING THC AND CBD, READ MORE...

(https://cannabis.net/blog/opinion/dont-fear-the-pot-shop-coming-to-a-
town-near-you)
DONT FEAR THE DISPENSARY, COMING TO A TOWN NEAR YOU SOON! (https://cannabis.net/blog/opinion/dont-fear-
the-pot-shop-coming-to-a-town-near-you)
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