CBD Franchise: An Industry On The Rise

A quick drive down many main streets across the U.S. will reveal a new key player on the franchise landscape: CBD retail. What was just a novelty idea a few years ago has quickly become a staple in the franchise business and has carved out a high-growth niche for itself within the retail industry, the CBD franchise market is in high growth mode.

Several CBD franchise brands including American Shaman, Discover CBD and Your CBD Store have exceeded 100 more units in operation across the U.S. and around the world making this one of the more exciting market segments to consider.   

What is CBD and why has it become so incredibly popular over the past few years? Let’s dive into some of the history and the reasons behind its industry stability.  CBD stands for cannabidiol, a compound found within the hemp and cannabis plants. Differing from its ever-popular relative THC, CBD does not cause any sort of high; instead, it’s reported to have a plethora of health and medical benefits. The compound had long been used by people for its purported perks, including reduced anxiety and stress.

Up until 1998, CBD was only an afterthought within the cannabis market and few recognized the potential for CBD products. THC had been the focus of growers who altered the plant to become THC-rich, leaving only trace amounts of CBD. GW Pharmaceuticals’ co-founder Geoffery Guy M.D. rerouted the CBD trajectory in late 98’ as he set out to prove the uses of CBD; he succeeded and the rest is essentially history.

The compound was bound by red tape that inhibited the social awareness behind its uses and its growth by manufacturers and farmers, but the 2018 Farm Bill changed the farmscape for the better, lifting federal regulations against industrial hemp growth, thus allowing for the industry to fully take root. 

CBD is derived from two different resources; it can be extracted from either the hemp plant or the cannabis plant. To be clear, CBD derived from hemp is allowed under the 2018 Farm Bill, but CBD from the cannabis plant still contains amounts over the 0.3% allowable number, making this one an illegal no-no.

The FDA has been careful to keep a close eye on CBD products, but the market has been booming nonetheless. Businesses are sprouting up all over the world to jump on CBD’s rise to the top. By 2024 the industry is projected to reach $20 billion in annual sales according to BDS Analytics. 

The acceptance of CBD products has grown like a weed, with over 7% of the population reportedly already using products containing the compound. There are a variety of products that have been CBD-infused including topical treatments, sublingual oils, edible products, and more. Even water, wine, vodka, and ice cream have entered the CBD scene.

Businesses are finding that growing awareness that CBD does not mean psychological effects or a high is having a direct positive effect on sales. Numerous lobbyists, non-profit organizations, companies, and individuals are consistently spreading the news that CBD is here to help and here to stay. 

The CBD industry has seen explosive growth, driving the incredible expansion within the CBD franchise marketplace. In an industry, as heavily regulated as this one, proven business models and processes is a significant benefit to those wanting to get into the CBD market segment and benefit from a proven franchise system.

Entrepreneurs hoping to start their very own CBD business must consider the roadblocks such as insurance, access to capital, and payment processing, all of which are difficult due to the heavy regulations. Franchised CBD businesses have ironed out all of these kinks, making buying into an existing brand an excellent way to join in on the explosive industry. 

For more information on how to Franchise your CBD Business, Contact Us.




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