In 2021, France, like several other countries, finally authorized the use of cannabis for medical purposes. However, the use of these products remains governed by a set of legal provisions. It therefore seems crucial to master the said legislation before wanting to become a CBD Shop France franchisee. A good knowledge of the franchise network could also appear very useful.
What are the trends in the CBD market in France?
What are the steps required to set up a CBD shop?
Writing the business plan;
The franchise choice.
Step 1: Market research
The objective is to analyze the chances of success of your future business in the chosen region based on statistical studies. This comparative study of supply and demand will also allow you to identify any competitors present in the region.
It will also allow you to know the services offered by the competition as well as the prices it charges. The person who wishes to become a CBD Shop France franchisee will then be able to assess their ability to cover the various expenses related to the project.
Step 2: Writing the business plan
The business plan or business plan is understood as a document that reports on the prospects of the entrepreneur. He objectively presents the strengths and weaknesses of his project.
In addition, he specifies the particularity of his offer compared to those of his competitors, without forgetting the prices of his products. It is also a document through which one can easily negotiate obtaining credit from banking institutions.
Step 3: Fundraising
The amount of funds needed to set up the CBD business varies depending on whether you want to work as a franchisee or not. If you opt for the installation of a franchise, you will have to pay a deposit of fifty thousand francs. The personal contribution required amounts to nearly thirty thousand euros, to which can be added a bank loan of twenty thousand euros.
Payment of these fees will allow you to access qualifying training. Finally, you have to think about the costs of renting the store and the monthly fees to be paid. For those who wish to undertake on their own, the course is generally more difficult. Indeed, all the expenses related to the formalities to be carried out remain at their expense.
Step 4: Choosing the franchise
There are several CBD labels available on the international market today. Before embarking on distribution, it is therefore advisable to carry out a comparative study of their respective products. This will allow you to make sure that the product you choose to market meets the quality standards in force in the European area. The THC content retained must strictly not exceed the 0.3% mark.
It is then necessary to take into consideration the selling price of each product. Indeed, customers do not have the same purchasing power. Depending on your catchment area, certain brands of CBD will therefore find it easier to sell.
What are the advantages and disadvantages associated with choosing franchises
By opting for the creation of a distribution franchise for CBD-based products, you enjoy several advantages. The first lies in the sharing of experiences within the community made up of the franchisor and his collaborators.
You will learn from the mistakes made by others in order to improve your results. In addition, the franchise manager offers everyone personalized support. This is not including the initial training covered by the franchise membership fee. You also have territorial exclusivity with regard to the promoted label.
However, you should know that the franchise remains restrictive for the entrepreneur who wants to start distributing CBD products. Indeed, the latter can only sell the products of the brand of which he is the partner. It may therefore be a loss of earnings.
This potential drop in sales is even more pronounced when the associated brand is not well known. It is therefore crucial to choose the franchise of which you wish to be the standard bearer. If not, you can always revise your communication strategy. For example, you can organize test sessions of the products offered for sale or promotional campaigns.