Discover CBD Store Franchise Information
February 26, 2019Hello from Discover CBD!
This article will provide great background information on our program, but for more on the current status of the program, check out this UPDATE!
This announcement is to introduce everyone to some background information about the Discover CBD store model, our approach to franchising these locations, and the initial procedure to begin the franchising process for those who are qualified.
To get in contact with us, please reach out to franchise@discovercbd.com
As this is our first franchise offering, we have no historical franchisee sales data. Unfortunately, we are therefore legally restricted from offering any claims or predictions of potential store profits or the return on your investment.
The system itself is well positioned and poised for growth with a proven track record and a highly experienced operations and management team. The team’s founder, Levi Hays, has had a successful career in the cannabis industry and is looking to further legitimize the industry by offering a variety of CBD oils, capsules, rubs, and more in a retail setting. The business model is extremely simple to operate and requires very limited staffing. All the products and accessories are sourced from an affiliate supplier, Discover Health Distribution, and the visionary principles are derived from the management team’s vast experience and business acumen.
The value based in our industry knowledge, manufacturing capability, purchasing power, established marketing techniques, developed SEO, and operational support separates us from the other available CBD/hemp industry opportunities. We have already overcome the obstacles which cause many entrepreneurs starting in this industry to fail, and you benefit directly from our experience.
Initial Investment
The projected total investment necessary to begin operation of a Discover CBD franchise is $89,300 to $170,500. Of the projected total, $45,000 - $60,000 must be paid to the franchisor or affiliate. This is comprised of the $30,000 franchise fee and the cost of initial inventory. The total investment necessary to begin operation under a three- to five-unit Multi-Unit Development Agreement is $130,300 to $255,500. This includes $85,000 to $120,000 that must be paid to the Franchisor. There is a minimum of three Discover CBD units that you are required to develop under the Multi-Unit Development Agreement for reduced initial franchise fees.As this is our first franchise offering, we have no historical franchisee sales data. Unfortunately, we are therefore legally restricted from offering any claims or predictions of potential store profits or the return on your investment.
An Opportunity to Make a Difference
Discover CBD has spent years in the cannabis industry, and its recent focus has been in building, managing, and perfecting the Discover CBD business model and operating structure to provide a one stop shop for all of a customer’s cannabidiol (CBD) needs. Discover CBD initially began offering CBD online nearly 4 years ago. Opening its first official retail location in August of 2017, Discover CBD now has four locations throughout Colorado Springs and Denver (with another soon to open in Denver!) and has derived much operational wisdom in this short period of time. The CBD and hemp markets have seen increased competition, but it is not even on the proverbial map compared to where it will be in another five or ten years. Discover CBD is poised for growth at the unit level in the number of units, and as a supplier, it has the capabilities and resources to keep up with the increase in demand and consumption.The system itself is well positioned and poised for growth with a proven track record and a highly experienced operations and management team. The team’s founder, Levi Hays, has had a successful career in the cannabis industry and is looking to further legitimize the industry by offering a variety of CBD oils, capsules, rubs, and more in a retail setting. The business model is extremely simple to operate and requires very limited staffing. All the products and accessories are sourced from an affiliate supplier, Discover Health Distribution, and the visionary principles are derived from the management team’s vast experience and business acumen.
Discover CBD is Unlike Other Franchise Options
The Discover CBD Franchise model will be a fixed retail location providing CBD products and accessories for both retail and wholesale customers. The operating model is relatively simple from an operational standpoint, but it delivers an extremely diverse and quality experience for the customer with great results to the bottom line. The Discover CBD model offers consumers the opportunity to purchase top quality CBD products and accessories at competitive prices. Most importantly, the staff is trained to educate the consumers to add value to the buying experience, as CBD is still an unknown to many buyers.The value based in our industry knowledge, manufacturing capability, purchasing power, established marketing techniques, developed SEO, and operational support separates us from the other available CBD/hemp industry opportunities. We have already overcome the obstacles which cause many entrepreneurs starting in this industry to fail, and you benefit directly from our experience.
For an approximation of our store concept we intend to replicate, review the following images of our Denver store:
A Revolutionary Opportunity in Franchising
The Discover CBD operating model is simple and has been structured with well-defined processes and systems in place. This should make for a straightforward training program with new franchisee partners, although to further minimize risk, we will be highly selective in awarding franchises. The stores offer a unique mix of CBD products and accessories including THC free and water-soluble CBD. The Discover CBD brand was created under the idea that customers should have access to purchase a product that has many health benefits. Discover CBD goes above and beyond to satisfy customer needs and has selections for people as well as their pets. The most important factor in analyzing Discover CBD is the service. Discover CBD prides itself on being a professional, reliable and knowledgeable business where the customers can get an education and get the best CBD products with great service.Supported by a Team of Professionals
A member of the Discover CBD field support staff will visit each franchisee regularly and will always be available for support. It is estimated that Discover CBD will need to hire one field supervisor for every 20-25 franchises in the field. This is a relatively “de-leveraged” support model that should allow for the high quality of support and guidance provided to franchisees. The Franchisor will incorporate a formalized mechanism for ensuring quality control among franchisees that will be implemented by these field supervisors. Designated staff members will perform supervision of field support duties. In addition to field support, members of the Franchisor Organization will provide the services listed below.Operational Support
The Franchisor will provide ongoing training and support in many areas critical to the success of the franchisee's business, including unit operations and maintenance, customer-service techniques, product ordering, suggested pricing guidelines and administrative procedures.
Discover CBD Marketing Support
Discover CBD will coordinate development of advertising materials and strategies for the benefit of all members of the franchise network. It will also supply franchisees with consumer marketing plans and materials for use at the local or regional level. Eventually, all marketing materials and collateral may be uploaded on to an intranet that would provide the franchisees the ability to download documents whenever needed.
Discover CBD Purchasing
The Franchisor or its affiliate will negotiate quantity discounts on behalf of all its members, passing some or all of these savings on to the franchisees. This will include elements such as retail items, marketing materials, and other needed items for operating a Discover CBD location.
Ongoing Research and Development
Discover CBD management and leadership will continue to research methods and techniques for franchise operations (including purchasing and promotional schemes) that enhance unit-level profitability. There will be continued research and development on how to better operate the retail locations and how to more profitably manage a Discover CBD franchise.
Franchising by State
We are currently selecting the best candidate to open the first Discover CBD in each state, outside Colorado. The first franchisee in a specific state will receive Distribution Rights for that state. Each Distributing Franchise has the right of first refusal in that state, and each subsequent individual franchise must purchase their products through the Distributing Franchise. Therefore, the distributing franchise in each state will receive products for 5% lower than other franchises in the state, which is part of the incentives to become that state’s Distributing Franchise by signing first.Currently, we will not be franchising Idaho, Nebraska, or South Dakota due to state laws on CBD. As soon as the laws are changed, we will offer franchises in these states as well.
All stores in Colorado are planned to be corporately owned.
For information updated in April including an updated map, please read our Discover CBD Franchising Updates: https://discovercbd.com/blogs/cbd-news/discover-cbd-franchise-program-updates
UPDATE June 27th: We currently only have the FDD registered in IL out of the registration states. For states without a registered FDD, we still have an opportunity available through a Distribution Agreement.
UPDATE June 27th: We currently only have the FDD registered in IL out of the registration states. For states without a registered FDD, we still have an opportunity available through a Distribution Agreement.
The Next Step
If you have the capital to meet the initial projected investment, the next step would be to send us information about yourself to aid in our candidate selection process. For consideration,please send us a prioritized list of the states you are most interested franchising, along with a short statement summarizing prior business experience. Reasons you believe you would be a successful franchisee, as well as any other insight into your specific market or qualifications, will certainly help elevate you above other interested parties.Please email this information to us at franchise@discovercbd.com or give me a call directly at 719-666-7222. My name is Corey.
I am also more than happy to answer any basic questions to help guide you toward the decision that could make an enormous difference - for you, your family, and your community.
Self-qualifying candidates will be contacted to move forward with the next step in our process, a phone meeting with the owner and me. During this call, more background information is given regarding the franchise concept, and we have the opportunity to learn more about you. If the owner approves, you will then receive the Franchise Disclosure Document, which is the franchise contract explaining the fees, cost projections and franchise process in its entirety, as soon as state specific registration or exemption is complete.
For more recent franchise updates and news about our first agreements, read our article here: https://discovercbd.com/blogs/cbd-news/discover-cbd-franchise-program-updates
For more information about Discover CBD stores in general, including our Active CBD Oil products, view our website: https://discovercbd.com
For more information about Discover CBD stores in general, including our Active CBD Oil products, view our website: https://discovercbd.com
For more information about the exclusive brand we manufactured for our stores, as well as current lab reports, visit the Active CBD Oil website Active CBD Oil website.
https://discovercbd.com/blogs/cbd-news/franchise-director-corey-hartley-biography
Disclaimer
This is not a franchise offering. A franchise offering can be made by us only in a state if we are first registered, excluded, exempted or otherwise qualified to offer franchises in that state, and only if we provide you with an appropriate franchise disclosure document. Follow-up or individualized responses to you that involve either affecting or attempting to affect the sale of a franchise will be made only if we are first in compliance with state registration requirements or are covered by an applicable state exclusion or exemption.
We appreciate your interest in the Discover CBD franchise opportunity and look forward to hearing from you soon!
Corey Hartley
Franchise Director
franchise@discovercbd.com
719-666-7222
Disclaimer
This is not a franchise offering. A franchise offering can be made by us only in a state if we are first registered, excluded, exempted or otherwise qualified to offer franchises in that state, and only if we provide you with an appropriate franchise disclosure document. Follow-up or individualized responses to you that involve either affecting or attempting to affect the sale of a franchise will be made only if we are first in compliance with state registration requirements or are covered by an applicable state exclusion or exemption.