Your CBD Store Franchise: Cost and Opportunities (2022)

Written by: Owen Boyd
Last Updated by Facundo Bermúdez : April 28, 2022
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your cbd store
This article is based on its most recent FDD.

Your CBD Store offers herbal and nutritional supplements containing cannabidiol (“CBD”) from industrial hemp. Their products include capsules, dissolvable supplements, medicated cosmetics, dietary supplements, and others. 

The current CEO is Marcus Quinn, who is married to Your CBD Store founder Rachael Quinn. He has been in that role since 2019, previously serving as the President of Promotional Enterprises, Inc. from 2016 to 2019. 

As of 2020, there were 161 franchised units and 1 corporate unit. 

CBD Industry

Your CBD Store competes in the new but growing CBD industry. The industry was valued at about $7 billion in 2020, but is projected to grow rapidly over the next five years as the regulatory environment around CBD products becomes more favorable and as consumers become more comfortable with CBD products.

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Their main competitors are other CBD franchises like CBD Authority and CBD American Shaman. They also compete with the recreational marijuana industry, which is only legal in a handful of states but is also expected to grow over the next several years.  

 

Your CBD Store Franchise Cost

The initial Franchise Fee is $5,000. You have to pay this upfront fee when opening a Your CBD Store franchise.

The estimated total investment necessary to begin operation of one of their franchise ranges from $66,350 to $82,450.

The following costs are part of the upfront costs included in the initial investment in a Your CBD Store Franchise.

Many of these are one-time fees that are needed to launch the franchise.

Review the chart below to see how much it costs to buy a Your CBD Store franchise in 2021:

 

 

Estimated Initial Investment

Type of expeditureAmountMethod of paymentWhen dueTo whom payment is to be made
Initial Franchise Fee$5,000Lump SumAt the time you sign the Franchise AgreementYour CBD Store
Rent$3,000 to $7,500 (3 months)As ArrangedAs ArrangedLandlord
Security Deposit$1,000 to $2,500As ArrangedAs ArrangedLandlord
Real Estate and Improvements$5,000As ArrangedBefore OpeningLandlord, Contractors
Travel and Living Expenses while Training$1,500As IncurredDuring TrainingHotels, Restaurants, Airlines
Furnishings, Fixtures, Equipment and Decorating$10,000 to $12,000As ArrangedBefore OpeningSuppliers, Contractors
Signage$2,500As ArrangedBefore OpeningSuppliers, Contractors
Opening Inventory$20,400 to $25,500As ArrangedBefore OpeningSunflora, Inc.
Computer Hardware/Software$2,000 to $3,500As ArrangedBefore OpeningSuppliers, Contractors
Technology Fee$600As ArrangedAs ArrangedSunflora, Inc., Suppliers
Grand Opening$3,000As ArrangedAs ArrangedSuppliers
Proffesional Fees$1,000 to $2,500As ArrangedBefore Opening and OngoingYour Accountants, Lawyers, Real Estate Broker, Architectural Firm
Insurance$600As ArrangedAs IncurredInsurance Providers
Miscellaneous Opening Costs$750As ArrangedAs ArrangedSuppliers, Utilities, Tradesmen, Contractors, Your CBD Store
Additional Funds – 3 months$10,000As ArrangedAs ArrangedSuppliers, Employees
Total$66,350 to $82,450

Your CBD Store Franchise

Owning a Your CBD Store Franchise Requires Ongoing Fees.

Advertising Fund Fee: 3% of wholesale product purchase costs

Local Advertising: At least 3% of gross sales per quarter

Royalty Fee: 2% of the wholesale cost of products

 

Franchising Income Statement:

Your CBD Store, LLC
Statements of Operations and Member’s Equity

Years Ended December 31, 2020, and 2019
 20202019
Total Income$ 66,571$ –
Operating Income$ 66,571
   
Expenses:  
Accounting5,000
Advertising and Marketing6,980
Bank Charges & Fees36
Conferences/Events3,276
Legal and Professional Fees96,842
Licenses and Fees139
Office Supplies and Software2,080
Total expenses$ 109,3205,006
   
Income from operations(42,749)(5,006)
Distributions
Members’ equity, beginning(4,006)1,000
Members’ contributions250,000
Members’ equity, ending$ 203,245$ (4,006)

 

your cbd store

Your CBD Franchising, LLC Income Statement Key Insights:

None of the Your CBD Store locations opened their doors until 2020, so its franchising company did not record any operating income in 2019. The franchising company recorded $66,571 in total income in 2020, but since total expenses amounted to $109,320, the operating income was actually a deficit of $42,749. Most of the expenses ($96,842) are accounted for by legal and professional fees, which can be viewed as more of a short-term expense that can go down over the next few years as the legal questions surrounding the CBD industry get resolved. 

How many units have opened and closed?

Outlet typeYearOutlets at the start of the yearOutlets at the end of the yearNet change
Franchised2018000
2019000
20200161+161
Company-Owned2018000
2019000
202001+1
Total Outlets2018000
2019000
20200162+162

 


Your CBD Store is a new and growing brand, with all of its 162 locations opening in 2020. And legal barriers and consumer acceptance is expected to drive even further growth in the CBD industry.


 

Conclusion

The CBD industry is still new and while it has grown tremendously over the last few years and has the potential for further growth, there is still a lot of uncertainty surrounding its future. Specifically, high legal fees threaten profits in the short term, and the profitability of the industry right now is difficult to determine. We recommend that you speak to current Your CBD Store franchisees or others in the CBD industry to learn more about sales and profit prospects. 

While this may be the business for you, make sure to also check out other businesses offered on Vetted Biz & Visa Franchise.