4 minute read

Nationwide Legalization of Cannabis Spurs Industry Franchises

by Harold Kestenbaum

As legal use of marijuana gains traction in legislatures across the country, one franchise brand is ready to capitalize on the market.

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The inevitable legalization of cannabis isn’t too far in the distant future. From The Earth is a cannabis dispensary with the market knowledge, vendor networks and legal compliance to dominate the growing industry. Currently headquartered in California, where it has several dispensaries, From The Earth also has operations in Missouri and Michigan. With so much potential on the horizon, From The Earth partnered with Cannabis10x to help franchisees get in on the future success of the industry while it’s still early.

“We thought that franchising would be the best way for us to scale up the brand,” Dan Zaharon, Chief Executive Officer of From The Earth, said. “Franchising also served as a way for us to mitigate our risk in an industry that is inherently risky, and working with Cannabis10x to find franchisees who have strong connections to their local markets would put the brand in a much better position to expand as legalization continues to spread.”

Cannabis10x is a franchise brokerage that works with brands in the cannabis industry to find franchisees and offer a turnkey business that can capitalize on the growing demand for cannabis.

“We offer wrap-around services for clients like From The Earth, helping them secure banking, lending, funding, raising capital and getting through the legal boundaries of the industry,” Jason Tropf, Founder and Chief Executive Officer of Cannabis10x, said.

Also on the team helping to expand the brand is Holly Ford, co-founder and the vision behind Cannabis10x. Ford emphasized the significance of getting in on the cannabis franchise industry now, saying that the country is at an inflection point and on the brink of a huge boom amid legalization.

“The safety of being a part of an already established franchise brand like From The Earth is going to be critical,” Ford said. “Investors weren’t investing a year ago because they were afraid, but now there are franchise opportunities in the industry like those with From The Earth, and the return will be tenfold.”

From The Earth provides its franchisees with unparalleled franchise support. The brand offers training, hiring and staffing support, an in-store “shadow” program, marketing support, design and construction support and a consultant team that includes attorneys, accountants and marketing professionals. However, perhaps the most crucial support element offered in the highly fragmented industry is the assistance with applications, licenses and permits. With the expected upward trajectory of the industry, From The Earth is laser-focused on the franchising of the brand.

Also helping the brand navigate the muddy waters of the cannabis market is Spadea Lignana Franchise Attorneys.

“Spadea Lignana has been our attorney from the beginning of the franchising process, helping us with the franchise disclosure document, vetting potential candidates and coordinating with local law firms across the country so we know the different regulations that may exist in different states,” Zaharoni said. “They also review all contracts and provide us with whatever legal advice we may need.”

Since marijuana has only been in the “legal” world for six years, and it remains illegal on the federal level, there’s a lot to untangle in preparing to expand as a franchise. “When you’re one of the first franchises like we are, it’s difficult to understand things and how to make it all work,” Zaharoni said. “They have been instrumental in helping us understand the nuances of different states and jurisdictions and got us to market a lot quicker than we would have on our own or with any other firm.”

“It’s a challenging but very exciting time to be in the business,” Zaharoni said. He, along with the team from Cannabis10x, is excited about the future of franchising in the cannabis industry, and he’s looking forward to asking the team at Spadea Lignana a lot of questions that haven’t been asked before.