Comments are based on this article from Green Entrepreneur.
McDonalds, Domino Pizza, KFC,ACE Hardware, 7-Eleven, Dutch Love Cannabis – how are these connected? YEP, they are all top franchisors in their consumer verticals.
Franchising has hit the cannabis space. Of the 36 legal states, 10 have laws permitting some sort of franchising as well as Canada (on a national basis). This is not the FTC- regulated market that you may be familiar with, which is still prohibited in the US, but state and local regulated franchise businesses with little uniformity between states or even within a single state.
But why franchise in the cannabis industry? For the same reason Burger King is successful in the restaurant business. Hey, anyone (except my mother, rest her soul) can make a good hamburger – Right? Right! But not everyone can make one PROFITABLY.
So, as the below article explains, the same business model that has littered the American roadsides with endless fast food, may soon be spreading retail cannabis. SOPs, regulatory compliance, branded products, brand recognition and POS systems are exchanged for Franchise Fees and Marketing Dollars.
It’s all part of the normalization of the cannabis industry. Soon you too will be able to get generic weeds, in an over-lit store, in non-recyclable packaging, at “reasonable” prices. Yummmmmm.