Colorado is fast becoming the litmus test for all-things industry in the world of weed. As legality ekes from limited medical, to full and recreational usage in pockets around the nation, the Centennial state is time and time again proving a vanguard in how this business is going to look after puberty.
Providing the most opportunity for growers, chemists and distribution in the last year–thanks in great part to their recreational law, as opposed to California’s solely medical– a next step is emerging from the smoky haze of Colorado’s early dayz. The step called franchising.
The term refers to the use of pre-established business models or successes as a base for new location and expansion. Think your Subways, your McDonalds, your Dunkin’ Donuts. And as the cannabis industry continues to grow upward and outward, so too must business opportunities for companies aiming to establish.
Forget the door. Stores and growers are looking to build the room behind the door that others will eventually be trying to get their foot in. Already different ops are looking to build their brand and style while applying for franchise licensing, so that in the near future, new locations will be able to house and sell their products at a rated fee and tax percentage. Not only can new locations spring up, but already existing dispensaries could be absorbed or converted for smaller fees than ground-up. CNN’s already got a show in the works detailing the trials and tribulations.
And with the sunnier side of expansion comes sure tribulation, as in all work. Federal stipulations still mean–if they felt like it– Feds could at any time bust up and shut down any and every “legal” weed operation in the country. That means your McWeedles and Dunkin Dabnuts, too. And just as the legal issues hide in the shade, so too do phony practitioners and scam artists. Many investors to date try to claim “opportunity” routes in licensing, rather than pay the real fees and do the necessary work for becoming a true “franchise,” and in turn, leaving franchisees at great financial risk.
What all this means is that like it or not, marijuana is becoming a true and tried business industry in the heart of ole capitalism. As the law in Colorado continues to provide an example for states to follow, businesses should take note of the developing structure. With all this talk of franchise, it wouldn’t surprise us if A.I. came back to play for the Nuggets.
You talkin’ bout practice?