Opening a Cannabis Franchise

YOU’VE GOT QUESTIONS ON OPENING A CANNABIS FRANCHISE

WE’VE GOT ANSWERS

How is a cannabis franchise possible?

The short answer is-just like all the other franchises. Our business operates like any traditional franchise. Unity Rd. is licensed in legal cannabis states to franchise, our franchise disclosure document (FDD) is comprehensive, and we have a seasoned franchise team ready to add another unit to our operation and support our franchise partners at any time. All the benefits and support that franchise partners expect with any other franchise concept are available with Unity Rd.

Because cannabis is still illegal on a federal level, are franchise partners at risk of being prosecuted?

No, because all cannabis business licenses are approved by the state government in which the business is located - therefore, you will not be at risk of prosecution. In the cannabis industry, state law supersedes federal law. Once the Cole Memo was passed in 2013, the federal government has largely stopped interfering with cannabis businesses operating legally in states that have legalized medical or adult-use marijuana. That being said, because the cannabis industry is so tightly regulated, it is extremely difficult to navigate the complexities of compliance with state law. If someone attempts to do so with little experience, it can cause million-dollar mistakes. This is where Unity Rd. comes in - with over a collective 120+ years of experience in the cannabis space, we've mastered the process to ensure compliance with state law, and balance that compliance with profitability.

How do you navigate banking in the cannabis industry?

There are banks and credit unions in every legal state that take cannabis clients. They're mostly smaller banks and local credit unions, because national institutions like Chase or Wells Fargo won't participate until compliance costs associated with a cannabis program decrease and the discord between state and federal legality is bridged. Banks prefer to work with those that have a 'segregation of duties' in their operation and want to see established financial and operational policies and procedures - which is what Unity Rd. equips franchise partners with. Unity Rd. has 8+ years of cannabis banking experience and also knows how to operate as a cash-only business. Whether or not you have a bank account, customer transactions are most often in cash. Unity Rd. is more than ready to assist franchise partners with banking solutions.

Is $1M in liquidity really needed to get into cannabis?

First and foremost. liquid capital is a requirement for this industry because lending is often limited for cannabis. That being said, from a retail standpoint, there are several factors that contribute to the price tag. It is a cash-heavy business with strict regulations, so retailers will need walk-in vaults, drop safes, security cameras, and compliance technology. Additionally, part of the $1M investment includes the $100,000 Unity Rd. franchising fee, application fees, and licensing fees. Once you are awarded a license, there's site selection, build-out. inventory and safety and compliance costs, just to name a few.

What markets are currently available?

The markets that are currently available include those with open dispensary application cycles and/or have acquisition opportunities. For individuals in limited or non-existent markets, Colorado, Massachusetts, Maine, Michigan, New Mexico, and Missouri are the most accessible because there are NO residency requirements. Oklahoma is ready for entry today; however, 75% of the business's ownership must be held by a person who has held residence in the state for 2+ years. In 2021, New Mexico, New York, Virginia, and Connecticut legalized cannabis for adult use, and states such as Ohio and Pennsylvania are expected to follow suit in 2022.

What is the typical retail store size (sq. ft)?

A typical Unity Rd. store is approximately 1,800-2,400 sq. ft. in size. Adequate space is needed to accommodate the security and compliance regulations, such as the walk-in vault with a safe for revenue and products. The Unity Rd. shopping experience is designed to accommodate the curious to the connoisseur with a flexible, free-flowing floor plan that eliminates wait times while allowing for a self-guided sales floor with enlightening consultation areas.

How do I get the product if cannabis can't be transported over state lines?

Cannabis cannot, under any circumstances, cross state lines. All wholesale cannabis purchases have to be conducted within the same state the product is grown, harvested, and sold in. So, dispensary owners need to start their own grow or purchase their product from a licensed in-state cultivator. Unity Rd. has hundreds of professional relationships across the country and cultivation expertise that's landed us six High Times Cannabis Cups and countless other awards. We help our franchise partners by aligning them with reliable suppliers through our own relationships or assessing the quality of other growers in the area. In states where franchises are expected to open in volume, we're already establishing partnerships with cultivators that will directly benefit our franchise partners.

If I live in another state, can I open a franchise in a market where there are opportunities to get into the industry sooner?

For individuals in limited or non-existent markets, Colorado, Massachusetts, Maine, Michigan, New Mexico, and Missouri are the most accessible because there are NO residency requirements.

The industry is evolving, and we’ve got up-to-date information for you to keep track of the latest cannabis dispensary application and changing guidelines. Learn the latest info.