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- 2022 Franchise 500 Rank
N/R Not ranked last year
- Initial investment
$89K - $162K
- Units as of 2020
13 1,200.0% over 3 years
Here’s what you need to know if you’re interested in opening a Discover CBD franchise.
Founded in 2015 and based in Colorado Springs, Colorado, Discover CBD sells cannabidiol (CBD) and hemp related products. It also strives to educate about the health benefits of these products. Discover CBD was started by three individuals: a medical doctor, a marijuana and hemp horticulturist, and a natural and medicinal supplement professional.
Discover CBD aims to bring CBD health benefits to the masses and offers a wide range of products including tinctures, edibles, lotions, and performance patches. They opened their first retail location in August 2017 and have been franchising since 2019.
Why You May Want To Start a Discover CBD Franchise
Discover CBD has several years of experience in the cannabis industry and may be suitable for franchisees passionate about educating customers about the benefits of CBD products. The company focuses on being a reliable, knowledgeable, and professional business where customers can get high-quality products. The business model may be simple to operate, and franchisees will receive support from a team of professionals.
The brand offers a wide range of products and accessories for both wholesale and retail customers. This diversification of product distributions may help to further solidify your business. Discover CBD also gives exclusive territories to reduce competition from other Discover CBD franchises.
What Might Make a Discover CBD Franchise a Good Choice?
Discover CBD believes it goes above and beyond when setting up well-defined business processes and systems for their franchisees. They are committed to conducting ongoing research and development on better operating retail locations and managing a growing Discover CBD franchise.
Potential franchisees are expected to present a statement summarizing prior business experience for their franchise application. Franchisees will also have to commit to running a full-time business with several employees. A typical franchise agreement runs for ten years. Franchisees may be allowed to renew their agreement if they meet the Discover CBD requirements.
To be part of the Discover CBD 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 fees and royalty fees. Franchisees will also need to meet the company's set liquid capital requirements.
How To Open a Discover CBD Franchise
As you decide if opening a Discover CBD 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 a Discover CBD franchise would do well in your community. 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 Discover CBD franchising team questions.
If awarded a franchise, franchisees receive a great deal of support from the Discover CBD brand throughout the franchising process. In addition to a few dozen hours of classroom training, franchisees receive support through brand awareness, marketing, research, and site selection. They also receive multiple hours of on-the-job training and continued support after their franchise location has opened.
About Discover CBD
- Franchising Since
- 2019 (3 years)
- # of employees at HQ
- Where seeking
This company is seeking new franchisees in the following US states:
This company is seeking new franchisees in the following international regions:
- # of Units
- 13 (as of 2020)
Information for Franchisees
Here’s what you need to know if you’re interested in opening a Discover CBD 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.
- Initial Investment
- $89,300 - $161,500
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.
- Cash Requirement
- $115,300 - $246,500
Definition: The minimum liquid capital you must have available in order to qualify to become a franchisee of this company.
- 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.
- 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.
- Term of Agreement
- 10 years
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.
- Is franchise term renewable?
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
- 14 hours
- Classroom Training
- 24 hours
- Ongoing Support
Purchasing Co-opsNewsletterMeetings & ConventionsToll-Free LineGrand OpeningOnline SupportSecurity & Safety ProceduresLease NegotiationField OperationsSite Selection
- Marketing Support
Co-op AdvertisingAd TemplatesRegional AdvertisingSocial MediaSEOEmail MarketingLoyalty Program/App
Additional details about running this franchise.
- Is absentee ownership allowed?
Definition: Absentee ownership means that the franchisee does not actively work in the franchise business or manage day-to-day operations.
- 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.
- 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.
- # of employees required to run
- 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.
Interested in franchise ownership like Discover CBD? Request a free consultation with a Franchise Advisor now.
Are you eager to see what else is out there? Browse more franchises that are similar to Discover CBD.
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