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Franny’s Farmacy recently introduced a mushroom line.
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This article is part of “Where Are They Now?”—an ongoing series in which Franchise Times managing editor Emilee Wentland catches up with emerging brands.
The cannabis industry is highly regulated and laws differ from state to state, so getting into the hemp business comes with a handful of complexities other business owners might not have to face.
With Franny’s Farmacy, franchisees have the benefit of the franchisor handling licensing. The company guides franchisees through the entire process.
“That is a huge benefit,” Founder and CEO Franny Tacy said. “It’s just really hard and costly and expensive for people to do that on their own and most people can’t do it.”
Franny’s has six locations, down from 10 reported in 2022 in its Item 20. When Franchise Times reported on the company last year, Franny’s Farmacy had just restructured to bring a few formerly separate companies and investors into one organization, Franny’s Operations.
Previously focused on Connecticut and Virginia, Franny’s locations are located in Georgia and North Carolina.
“North Carolina is one of the most liberal states for help and CBD” in the southern United States, Tacy said. “North Carolina’s gonna be the first southern state to flip. Everybody knows it,” she said, referring to legalizing recreational cannabis.
Related: Challenges Mean Retail Cannabis Franchises Continue to Adapt
The company emphasizes its ecommerce and wholesale revenue channels to drive sales for franchisees. Franny’s also developed new products, from new edibles to an entire line of non-cannabis herbal products and even functional mushrooms.
“These are really, really big things for the brand, so that we’re not being pigeonholed or struck with any legal changes that may come,” Tacy said.
The cannabis industry is complex for multiple reasons, especially because of laws state to state. CBD is federally legal, as long as it has 0.3 percent THC or less. But states can determine whether full-strength marijuana is legal, and what it can be used for.
Retail: While Complexities Remain, Legalization Progress Equals Optimism for Cannabis Franchises
Cannabis franchisors are becoming more common. There’s retail cannabis brand Item 9 Labs, which purchased Unity Rd. in 2021. Former CEO Mike Weinberger co-founded Unity Rd. in 2018 and has since transitioned to other business ventures. Item 9 reportedly hired an advisory firm last year to sell the business.
The Holistic Connection is another cannabis franchise, which features a retail shop and bar similar to a wine lounge. The Tennessee-based brand has nine dispensaries and one restaurant, Buds & Brews. Canada-based Fast Leaf is a grow and sell franchise, rather than a retail chain like other brands. Franchisees grow the cannabis plants (or hire someone else to do it) and then sell the product wholesale to retail establishments.
The initial investment required to open a Franny’s Farmacy ranges from $206,600 to $362,500, including a $171,000 to $250,000 franchise fee. In 2022, average unit volume among four franchised units was $212,869.
Franny’s seeks out franchisees who have business experience and are like minded in their business and personal values, Tacy said.
“They feel it’s beyond a business,” she said. “It’s a lifestyle. So, who the people are is very, very important. It goes beyond money. We’re a brand, but it’s the Franny’s family.”
“}]] This article is part of “Where Are They Now?”—an ongoing series in which Franchise Times managing editor Emilee Wentland catches up with emerging brands. Read More