In November 2020, residents in New Jersey voted to legalize marijuana in the state. The next year, Gov. Phil Murphy signed three legislations on the legalization of cannabis. In April of this year, recreational retail stores in the state opened their doors to the public, making New Jersey the 14th state to legalize and implement the sale of recreational cannabis and decrease the penalties for underage use.
The commission in the state gave approval to a more than 100 conditional licenses for smaller growers and manufacturers. Despite having approval, it may take a year or longer for these operations to begin selling their products.
Franchising may make it easier for those involved in the space to navigate the system with the right product, training and services. Below are a number of ways through which franchising can be good for those involved in the industry not just in New Jersey but across the country.
Better compliance
Many dispensaries in different parts of the country have had to close shop because of infractions. Franchises usually have compliance teams that ensure that your business is up-to-date on regulation.
No supply chain issues
Cannabis plants can’t be transported across state lines because of federal regulations. This means that growers in most states will have to start from square one, which is time consuming.
Franchise systems are focused on obtaining and providing products quickly as well as ensuring the best pricing for the product. They also create standards across every franchise location regardless of the state and ensure quality, which eliminates any obvious issues that may impact the supply chain.
Good marketing strategies
Creating consistency and brand awareness is a top objective for marijuana franchisors. With a franchise, consumers have the same level of quality products and same experience at every location, which helps market a brand well.
Good site location
Franchise systems help businesses identify the best locations for a marijuana enterprise that can bring in a plenty of solid traffic while also complying with local zoning codes.
Conduct training
Marijuana franchises help ensure that a business and its team undergo extensive training to guarantee that the best customer services are provided, along with high-quality products.
At the moment, however, marijuana businesses are primarily still cash businesses as the federal legalization of cannabis is yet to be approved. This is a big issue, especially when one considers that marijuana franchises don’t qualify for small business administration loans, which may make it hard for cannabis companies, such as Cannabis Strategic Ventures Inc. (OTC: NUGS), to look to franchising as a good way to navigate the burgeoning industry.
NOTE TO INVESTORS: The latest news and updates relating to Cannabis Strategic Ventures Inc. (OTC: NUGS) are available in the company’s newsroom at http://cnw.fm/NUGS
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