Your CBD Store Franchise in 2024: Costs, Fee & FDD
Explore the investment potential of Your CBD Store, the nation’s largest CBD retail franchise. Learn about its affordable entry costs, proprietary SunMed products, and the challenges of navigating a booming $20 billion CBD market. Read more!
Table of Contents:
Your CBD Store is one of the largest and fastest-growing CBD retail franchises in the United States, founded in 2018 by Rachael Quinn. The brand was born out of a personal mission to promote wellness through high-quality CBD products after Rachael experienced the benefits of CBD firsthand. Since its inception, Your CBD Store has gained recognition as a trusted name in the retail CBD industry, helping to destigmatize CBD use and setting high standards for product quality and customer service.
At its core, Your CBD Store offers a wide range of hemp-derived CBD products, including tinctures, edibles, topicals, pet products, and water-soluble formulas under the proprietary SunMed® brand. These products cater to individuals seeking natural wellness solutions for anxiety, pain, inflammation, and sleep issues. The franchise primarily targets health-conscious consumers, including those new to CBD, and emphasizes educating customers to ensure they find the right products for their needs.
Today, Your CBD Store operates over 500 locations across the United States and several international markets, making it the largest brick-and-mortar CBD retailer in the country. Each store is designed to provide a welcoming, spa-like environment where customers can explore the benefits of CBD with personalized support from trained staff. The franchise serves thousands of customers daily, building loyalty through its commitment to transparency and product efficacy.
For franchisees, Your CBD Store offers a robust support system, including comprehensive training programs, assistance with site selection, and ongoing marketing support. New owners are trained in CBD product knowledge, regulatory compliance, and effective retail operations to ensure a smooth launch. The franchisor also provides cutting-edge tools, such as point-of-sale systems and local marketing campaigns, to drive traffic and sales. With a proven business model and a booming industry, Your CBD Store presents a compelling opportunity for entrepreneurs passionate about wellness and retail.
Your CBD Store Franchise Insights
- Rapid Growth: Since starting franchising in 2020, Your CBD Store has expanded to 281 U.S. locations, including 277 franchised units and 4 corporate-owned stores.
- Affordable Entry: With a $20,000 franchise fee, it offers one of the most accessible entry points in the cannabis retail industry.
- Customer Loyalty: Your CBD Store emphasizes education and customer care, fostering repeat business and a strong community presence in local markets.
- Moderate Risk Factor: The 3-year failure rate of 28% for Your CBD Store is higher than the industry average, indicating potential challenges in sustaining long-term success. Prospective franchisees should carefully evaluate market conditions, location selection, and ongoing operational support before investing.
- Global Expansion: Beyond the U.S., Your CBD Store has established locations in international markets, showcasing the global demand for premium CBD products.
Your CBD Store Franchise Key indicators
Growth YOY (%)
-7%
vs industry 0%
Total U.S. Franchised Units
277
3-Year Failure Rate
28%
vs industry 14%
How much does it cost to open a Your CBD Store franchise?
Understanding the potential investment size and capital requirements is crucial when considering opening a Your CBD Store franchise. These financial commitments, including initial franchise fees, equipment costs, and ongoing operational expenses, impact the feasibility and profitability of the venture. Thoroughly evaluating these factors ensures that potential franchisees are prepared for the financial responsibilities and can make informed decisions about their ability to sustain and grow the business, ultimately contributing to long-term success.
Min & Max Investment
Opening a Your CBD Store franchise involves several key costs, which are outlined in Item 7 of the Franchise Disclosure Document (FDD). you can see a breakdown of the costs to open a Your CBD Store below from the most recent Item 7 below:
| Type of Expenditure | Minimum Investment | Maximum Investment |
|---|---|---|
| Initial Franchise Fee | $20,000 | $20,000 |
| Rent (3 months) | $2,500 | $7,500 |
| Security Deposit | $2,500 | $7,500 |
| Real Estate and Improvements | $5,000 | $10,000 |
| Travel and Living Expenses while Training | $2,000 | $4,000 |
| Furnishings, Fixtures, Equipment, and Decorating | $8,200 | $12,600 |
| Point of Sale System (POS) | $1,800 | $2,400 |
| Signage | $3,000 | $6,500 |
| Opening Inventory | $20,400 | $25,500 |
| Computer Hardware/Software | $2,000 | $3,500 |
| Digital Platform Fee | $1,050 | $1,050 |
| Grand Opening | $15,000 | $20,000 |
| Professional Fees | $1,000 | $2,500 |
| Insurance | $600 | $1,500 |
| Miscellaneous Opening Costs | $750 | $1,500 |
| Additional Funds – 3 months | $10,000 | $25,000 |
| Total Estimated Initial Investment | $95,800 | $151,050 |
Item 7 in the Franchise Disclosure Document (FDD) is the “Estimated Initial Investment” section. It outlines the total costs a franchisee can expect to incur when starting a franchise, including the initial franchise fee, equipment, inventory, real estate, and other startup expenses. This section is crucial because it provides potential franchisees with a detailed understanding of the financial commitment required, helping them assess affordability and plan their investment strategy effectively.
Required Capital
To open a Your CBD Store franchise, the required capital involves both the initial investment costs and a net worth requirement set by Your CBD Store. Let’s take a closer look below:
- Initial Investment As shown above, the total estimated initial investment ranges from $95,800 to $151,050. This includes all the startup costs such as the franchise fee, real estate, construction, equipment, initial inventory, and additional funds for initial operating expenses. Assuming that you will finance your franchise investment, you should plan to have 20% of the total investment amount in the form of equity (cash) for the investment.
- Required Liquid Assets Typically, franchises in this sector require liquid capital between $50,000 and $100,000, ensuring sufficient working capital during the initial months of operation.
- Net Worth Requirement Franchisees are often expected to have a net worth of $200,000 to $400,000, depending on the market and location.
How much does a Your CBD Store franchise owner make?
Calculating the salary of a Your CBD Store franchise owner involves analyzing gross sales to determine total revenue, assessing operational efficiency to understand profit margins, and accounting for franchisor fees and additional expenses such as rent, utilities, and payroll. Effective management of these factors can significantly impact the profitability and financial success of a Your CBD Store franchise owner. This comprehensive financial analysis helps estimate net profits, from which the owner’s salary can be derived. A clear understanding of these factors ensures accurate salary projections and financial planning for sustainable business operations.
Your CBD Store Revenue & Gross Sales
The recent performance of Your CBD Store highlights its steady growth in the CBD retail industry, fueled by increasing consumer demand for wellness products. While specific median gross sales data is not provided, the franchise’s expansion to 281 U.S. locations demonstrates strong market penetration and customer appeal. This growth reflects the brand’s ability to capitalize on the booming CBD market, offering a unique product line and exceptional customer service. Franchisees can expect revenue performance to depend on factors such as location, local market conditions, and effective marketing strategies, making due diligence critical for assessing potential profitability.
Which key factors impact the average revenue performance of Your CBD Store franchisees?
The performance of Your CBD Store franchisees in terms of median gross sales is likely influenced by several key factors. First, the growing public interest in natural wellness products has driven consistent demand for CBD-based offerings. The franchise’s focus on high-quality, proprietary SunMed® products and personalized customer education helps build trust and loyalty, encouraging repeat purchases. Additionally, the brand’s expansion into 281 U.S. locations, particularly in underserved markets, contributes to increased visibility and customer reach. Local marketing efforts, combined with a supportive franchisor network, help franchisees attract and retain a steady customer base. However, external factors such as local competition and regulatory changes could also play a role in shaping revenue trends.
Your CBD Store Franchise Operational Costs
When opening a Your CBD Store franchise, here are the key ongoing operational costs specific to running a CBD retail business:
- Product Inventory Regular replenishment of proprietary SunMed® CBD products, including tinctures, topicals, and edibles, will be a significant recurring cost.
- Staff Salaries Wages for sales associates and potentially a store manager to ensure excellent customer service and maintain day-to-day operations.
- Rent and Utilities Leasing a retail space in a high-visibility location, along with utilities such as electricity, water, and internet.
- Insurance Comprehensive business insurance, including liability coverage specific to the cannabis and CBD industry, is critical.
- Local Marketing Additional promotional efforts like community events, social media campaigns, and targeted ads to build local brand awareness.
- Regulatory Compliance Costs related to meeting state and federal regulations, such as licensing fees, certifications, or updates to comply with evolving CBD laws.
- Technology and Software Point-of-sale systems, inventory management tools, and any e-commerce solutions for online sales integration.
These operational costs will vary depending on location, sales volume, and local market conditions, so careful budgeting is essential for sustained profitability.
Your CBD Store Franchise Fees
Understanding ongoing fees is critical to effectively managing a Your CBD Store franchise. Below are the key fees outlined in the provided data:
- Local Advertising Fee Franchisees are required to spend a minimum of 3% of gross sales per calendar quarter on local advertising. This allows flexibility in choosing advertising methods, subject to franchisor approval.
- Advertising Fund Fee The franchisor reserves the right to implement an Advertising Fund Fee at 3% of wholesale product purchase costs. While not currently active, this fee would support marketing collateral, website development, and product launch campaigns with 30 days’ written notice.
- Royalty Fee A 2% fee on the wholesale cost of products is charged when products are purchased from the franchisor. This fee accrues on a per-product basis and is payable upon purchase.
Other fees, such as potential technology upgrades, training, or compliance-related costs, may arise as part of ongoing operations, as outlined in the Franchise Disclosure Document (FDD).
These structured fees aim to balance operational support and brand growth while maintaining manageable costs for franchisees.
Your CBD Store Franchise Earnings
While specific median gross sales data for Your CBD Store is not publicly disclosed, the franchise’s rapid growth to over 281 locations indicates a strong demand for its products and the effectiveness of its business model. Franchise earnings likely depend on factors such as location, market conditions, and operational efficiency, making each store’s performance unique.
As an owner-operator, your earnings would be influenced by gross sales minus operating costs, such as inventory, staffing, rent, and ongoing fees (e.g., royalties and marketing). With relatively low royalty fees (2% of wholesale product costs) and affordable entry costs, the franchise model is designed to support profitability. However, external factors like local competition and CBD industry regulations can also impact financial performance. Prospective franchisees should conduct thorough due diligence, including discussions with existing franchisees, to better understand revenue potential and operating margins.
How to Open a Your CBD Store Franchise
Becoming a Your CBD Store franchisee is a rigorous process that involves financial scrutiny, extensive training, and thorough evaluation. However, it offers the potential for a lucrative business opportunity backed by a globally recognized brand and comprehensive support system.
The full process for how to open a Your CBD Store franchise is outlined below:
- Initial Inquiry You or your franchise specialist submits an initial inquiry basic information about your interest and background. You should also conduct thorough research on the franchise, including seeing all of the information available on the Vetted Biz franchise intelligence platform, including access to the most recent Franchise Disclosure Document (FDD).
- Discovery Call Participate in a call or meeting with the franchisor to discuss your goals, the business model, and ensure alignment between your vision and the brand.
- Discovery Day Attend a Discovery Day, where you’ll meet the franchisor’s team, learn about the day-to-day operations, and visit an existing store. This is an opportunity to ask in-depth questions and gain firsthand experience of the brand’s operations.
- Financial Approval Demonstrate your financial readiness to meet the $95,800 to $151,050 total investment range. This step includes verifying your liquid assets, net worth, and ability to sustain the business during initial operations.
- Franchise Agreement Signing Once approved, you’ll sign the franchise agreement, officially securing your rights to open a Your CBD Store location. At this point, you’ll pay the initial franchise fee of $20,000.
- Training and Onboarding Complete comprehensive training that covers CBD product knowledge, regulatory compliance, customer service, and retail operations. Training ensures you’re fully prepared to run the store.
- Site Selection and Build-Out Work with the franchisor to select a high-visibility location. The franchisor provides guidance on lease negotiations, store design, and setup to align with brand standards.
- Pre-Opening Marketing and Hiring Implement local marketing campaigns to build awareness and hire staff for your store. Pre-opening efforts are critical for generating buzz and attracting customers.
- Grand Opening and Operations Host a grand opening event to introduce your store to the community. With ongoing support from the franchisor, you’ll begin daily operations, focusing on customer engagement and building a loyal customer base.
Pros & Cons
Pros
Affordable Entry Costs: With a $20,000 franchise fee and a total investment range of $95,800 to $151,050, Your CBD Store offers a relatively low-cost entry point compared to other retail franchises.
Booming Industry: The CBD market is projected to exceed $20 billion by 2024, presenting strong growth potential for franchisees in a rapidly expanding sector.
Proprietary Product Line: The exclusive SunMed® CBD products have built a strong reputation for quality and innovation, setting the franchise apart from competitors.
Low Royalty Fee: The royalty fee of 2% of wholesale product costs is considerably lower than the industry average, allowing franchisees to retain more of their revenue.
Cons
Higher Failure Rate: The 3-year failure rate of 28% is above average, suggesting that some franchisees may face challenges in sustaining operations.
Lack of Financial Transparency: The absence of an Item 19 in the FDD means there is no disclosed financial performance data, making it harder to evaluate profitability.
Regulatory Challenges: The CBD industry is heavily regulated, and franchisees must navigate complex and evolving federal, state, and local laws, which can be resource-intensive.
Limited Brand Recognition: Despite having over 281 locations, Your CBD Store may still face challenges competing with more established health and wellness brands.
