Start a HBCannU Franchise in 2024

Franchise 500 Rank: N/R Not ranked last year

Initial investment: $110K - $166K

Units as of 2020: 1 0.0% over 3 years

HBCannU is a cannabis brand that started its operations in 2016 in the Southeast U.S. and touts itself as the first fully Black-owned franchised cannabis brand in the United States. Apart from selling HBCannU CBD products, the franchise offers cannabis education and cancer and recidivism programs. Consumers can also make online orders and purchase special HBCannU franchise merchandise.

Franchising since 2020, the HBCannU franchise is inspired by and rooted in the Marcus Garvey “Do For Self” Pan African Philosophy. As a result, HBCannU focuses on educating the public on how the cannabis industry works and the benefits of responsibly sourced CBD products. By franchising its business model, HBCannU hopes to keep creating history while providing employment and ownership opportunities to anyone with a mission of elevating the community of people of color.

Why You May Want to Start an HBCannU Franchise

The cannabis industry in the United States may be becoming more popular as the years continue to go by. If you are passionate about cannabis and are interested in informing the public about the benefits of CBD, becoming an HBCannU franchisee may be a viable option.

What Might Make an HBCannU Franchise a Good Choice?

Becoming an HBCannU franchisee may open you up to new opportunities while providing you with a workable business model. For instance, HBCannU has designed its opportunities to streamline its business model to reduce overhead expenses. HBCannU also offers single-unit franchise opportunities in regions that it believes may be penetrable by a HBCannU franchise.

With a single-unit franchise option, you may operate an HBCannU location in a territory that you choose—this allows you to decide the size of your territory and expand depending on the terms agreed upon.

To be part of the HBCannU franchise team, you should make sure you’re financially ready for an initial investment made up of a franchise fee and other startup costs. In addition, you should prepare yourself for ongoing fees that will include advertising, royalty, and potential renewal fees. Franchisees will also need to meet the company’s set net worth and liquid capital requirements.

How to Open an HBCannU Franchise

As you decide if opening a HBCannU franchise is the right move for you, make sure you take time to explore the opportunity. Research the brand and your local area to see if an HBCannU franchise would do well in your community. While competition is healthy, too much of it may not allow for the most possible growth.

Before making any financial commitment or signing an agreement, you must perform your due diligence and establish if this is the right opportunity for you. As part of your due diligence, you may want to speak to existing franchisees and ask the HBCannU franchising team questions.

If awarded a franchise, franchisees may receive a great deal of support from the HBCannU brand throughout the franchising process. In addition to pre-opening training, franchisees receive support through brand awareness, marketing, research, and construction. They also receive hands-on training and continued support after their franchise location has opened.

Company Overview

About HBCannU

Industry	Health & Wellness
Related Categories	Miscellaneous Health Products, CBD
Founded	2016
Leadership	Huey Abeyi, CEO
Corporate Address	212 Friesian Wy. Sanford, FL 32773

Business Overview

Franchising Since	2020 (4 years)
# of employees at HQ	2
# of Units	1 (as of 2020)

Information for Franchisees

Here's what you need to know if you're interested in opening a HBCannU franchise.

Financial Requirements & Ongoing Fees

Here's what you can expect to spend to start the business and what ongoing fees the franchisor charges throughout the life of the business.

Initial Franchise Fee Definition: The initial fee paid to a franchisor to join their system What you need to know: Found in Item 5 of the FDD, this may be a flat fee, or may vary based on territory size, experience, or other factors.The franchise fee is an up-front (one-time) cost that a new franchisee pays to the franchisor. This fee is usually due at the signing of the franchise agreement and covers the right to use the franchisor's trademarks, name, and related business systems.	$50,000
Initial Investment Definition: The total amount necessary to begin operation of the franchise What you need to know: The initial investment includes the franchise fee, along with other startup expenses such as real estate, equipment, supplies, business licenses, and working capital. This is outlined in a chart in Item 7 of the FDD, showing a range of possible costs from low to high.	$109,850 - $165,500
Net Worth Requirement Definition: The minimum net worth you must have in order to qualify to become a franchisee of this company What you need to know: Net worth is the value of a person's assets minus liabilities. Assets include cash, stocks, retirement accounts, and real estate. Liabilities include items like mortgages, car payments, and credit card debt.	$150,000
Cash Requirement Definition: The minimum liquid capital you must have available in order to qualify to become a franchisee of this company.	$50,000
Royalty Fee Definition: A ongoing fee paid to the franchisor on a regular basis. What you need to know: Most franchisors require franchisees to pay an ongoing royalty fee, which is detailed in Item 6 of the FDD. This fee is typically a percentage of weekly or monthly gross sales, but may also be a flat weekly, monthly, or annual fee.	10%
Ad Royalty Fee Definition: An going fee paid to the franchisor on a regular basis to support advertising or marketing efforts. What you need to know: This may also be called advertising fee, marketing fee, brand fund fee, and more, but the basic purpose is the same-- to support promotion of the brand systemwide. As with the royalty fee, it is detailed in Item 6 of the FDD, and can be a percentage of weekly or monthly gross sales or a weekly, monthly, or annual fee.	2.5%
Term of Agreement Definition: The length of time your franchise agreement will last. What you need to know: Franchise terms are typically anywhere from 5 to 20 years in length, but are sometimes instead dependent on factors such as the term of your lease. Once your term is up, you may have the option to renew your agreement, typically for a smaller fee than the original franchise fee.	5 years
Is franchise term renewable?	Yes

Training & Support Offered

Franchisors offer initial training programs and a variety of ongoing support options to help franchisees run their businesses.

On-The-Job Training	20 hours
Ongoing Support	Grand Opening Site Selection
Marketing Support	Social Media

Operations

Additional details about running this franchise.

Is absentee ownership allowed?	No
Can this franchise be run from home/mobile unit? Definition: The business can be run from your home and/or a vehicle, and it is not necessary to have a retail facility, office space, or warehouse.	No
Can this franchise be run part time? Definition: This business can be run by the owner on a part-time basis (less than 40 hours per week) and/or as a side business; it is not necessary for the business to be open/run full-time.	No
Are exclusive territories available? Definition: An exclusive territory is a fixed area in which you are given the right to operate and in which no other units of the same franchise may be opened. What you need to know: Territory size may be based on factors such as radius, population size, zip codes, and more. Details can be found in Item 12 of the FDD.	No