CBD American Shaman Franchise in 2024: Costs, Fee & FDD
Explore the investment potential of the CBD American Shaman franchise with our in-depth analysis of this cannabis franchise. Discover how this cannabis franchise brand appears to be going up in smoke. Learn about the costs, potential earnings, and the factors influencing success or failure in the marijuana and cannabis franchise industry.
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CBD American Shaman is a well-established franchise in the CBD industry, founded by Vince Sanders in 2015. Sanders started the company with the mission of providing high-quality, effective, and accessible CBD products to consumers. He had a personal experience with the therapeutic benefits of CBD, which inspired him to create a brand that could deliver those same benefits to others. The franchise quickly gained recognition for its commitment to quality and transparency, becoming a significant player in the rapidly growing CBD market.
The core products of CBD American Shaman revolve around hemp-derived CBD oils, tinctures, and topicals. These are complemented by an array of ancillary products such as CBD-infused edibles, skincare items, and pet products. The brand is known for its proprietary nanotechnology, which enhances the bioavailability of its CBD products, making them more effective. The franchise primarily serves health-conscious consumers looking for natural alternatives to traditional wellness products, with a broad market ranging from young adults to seniors.
As of now, CBD American Shaman boasts a robust franchise network with over 200 locations across the United States. It has become a prominent name in the CBD industry, with a presence in multiple countries and a daily customer base that continues to grow as CBD products gain wider acceptance. The franchise has built a reputation for being a trustworthy and reliable provider of CBD products, which has helped it maintain steady growth even in a competitive market.
Franchisees of CBD American Shaman benefit from a comprehensive support system that includes extensive training programs, marketing assistance, and ongoing operational support. The franchise offers initial training that covers product knowledge, sales techniques, and regulatory compliance, ensuring that franchisees are well-equipped to run their businesses. Additionally, the franchise provides continuous support through regular updates, promotional materials, and a strong focus on community engagement, making it a compelling option for potential investors.
CBD American Shaman Franchise Insights
- CBD American Shaman utilizes nanotechnology to create products with up to 10 times the bioavailability of standard CBD oils, making their offerings uniquely effective and fast-acting.
- Franchisees benefit from a streamlined supply chain and low product costs, leading to higher margins and a faster return on investment.
- CBD American Shaman is known for its relatively low initial investment compared to other franchise opportunities, with startup costs typically ranging between $88,000 and $184,000, making it accessible for many potential franchisees.
- The company has a strong focus on community involvement, with many franchisees hosting educational events and wellness workshops, which helps build a loyal customer base.
CBD American Shaman Franchise Key indicators
Growth YOY (%)
-18%
vs industry 0%
Total U.S. Franchised Units
169
3-Year Failure Rate
95%
vs industry 14%
Total investment
$88K - $184K
How much does it cost to open a CBD American Shaman franchise?
Understanding the potential investment size and capital requirements is crucial when considering opening a CBD American Shaman 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 CBD American Shaman 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 CBD American Shaman below from the most recent Item 7 below:
| Type of Expenditure | Minimum Investment | Maximum Investment |
|---|---|---|
| Initial Franchise Fee | $10,000 | $10,000 |
| Franchise Agreement Reserve Deposit | $5,000 | $5,000 |
| Real Property Lease Security Deposit & one month’s Rent | $1,800 | $10,000 |
| Franchise Location Build-Out & leasehold Improvements | $25,000 | $75,000 |
| Furniture, Fixtures, and Equipment | $4,000 | $10,000 |
| Signage | $3,500 | $10,000 |
| Opening Inventory | $20,000 | $25,000 |
| Training Period Payroll and Travel and living Expenses | $2,000 | $4,000 |
| Governmental Permits and Licenses | $500 | $1,500 |
| Utility Deposits | $100 | $300 |
| Insurance Premiums (3 months) | $600 | $1,800 |
| Additional Funds (3 months) | $15,600 | $31,800 |
| Total Estimated Initial Investment | $88,100 | $184,400 |
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 CBD American Shaman franchise or a similar CBD franchise, prospective franchisees should be prepared for both initial and ongoing financial requirements. Here’s a detailed look:
- Initial Investment The total investment to open a CBD American Shaman franchise typically ranges from $88,000 to $184,000. This includes the franchise fee, initial inventory, equipment, leasehold improvements, and other startup costs. 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.
- Liquid Assets Requirement Franchisees should have at least $30,000 to $50,000 in liquid assets. This ensures they have sufficient cash on hand to cover operating expenses and any initial financial needs.
- Net Worth Requirement A minimum net worth of around $150,000 to $300,000 is generally required. This demonstrates financial stability and the ability to support the franchise through its initial growth phase.
These figures are estimates and can vary based on location, lease agreements, and other factors.
How much does a CBD American Shaman franchise owner make?
Calculating the salary of a CBD American Shaman 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 CBD American Shaman 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.
CBD American Shaman Revenue & Gross Sales
The median gross sales for CBD American Shaman franchises are not publicly disclosed and can vary based on location, market conditions, and individual store performance. However, overall, the franchise has reported strong sales performance, benefiting from a growing market for CBD products.
Which key factors impact the average revenue performance of CBD American Shaman franchisees?
The performance of U.S. franchisee median gross sales for CBD American Shaman is likely driven by several key factors. Increased consumer acceptance and interest in CBD products have boosted sales, as more people seek natural wellness solutions. Effective marketing strategies and brand recognition play a significant role in attracting customers and driving traffic to stores. Additionally, the expansion of product lines and innovations, such as advanced nanotechnology, have enhanced product appeal and effectiveness. Operational efficiencies, including optimized supply chains and improved customer service, also contribute to higher sales performance. Overall, these factors combined help elevate franchisee revenue and profitability.
CBD American Shaman Franchise Operational Costs
When opening a CBD American Shaman franchise, it’s important to account for several key ongoing operational costs beyond the standard franchise fees. Here’s a look at the primary expenses you should consider:
- Inventory Costs Regularly replenishing stock of CBD products and other retail items is crucial. Inventory costs will vary based on sales volume and product assortment.
- Rent and Utilities Leasing a retail space involves paying rent, which can vary widely depending on location and size. Additionally, utilities such as electricity, water, and internet are ongoing expenses.
- Employee Wages and Benefits If you plan to hire staff, you’ll need to budget for salaries, benefits, and any additional labor-related expenses.
- Insurance Comprehensive insurance coverage for property, liability, and other business-related risks is essential.
- Maintenance and Repairs Ongoing costs for maintaining and repairing equipment, fixtures, and the overall store environment.
These costs will contribute significantly to your monthly operational budget and should be factored into your financial planning for the franchise.
CBD American Shaman Franchise Fees
When operating a CBD American Shaman franchise, it’s essential to understand the key ongoing fees that contribute to your monthly expenses. While some franchise fees may vary, here’s a breakdown of the primary costs you’ll need to consider:
- Monthly Royalty Currently, there is no royalty fee, but there is a possibility that a royalty fee of up to 6% of Gross Revenue from the preceding calendar month could be implemented with 90 days’ written notice.
- National Marketing Fund Fee $800 per month. This contribution supports national advertising campaigns and marketing initiatives, helping to promote the brand and attract customers to your location.
- Inventory of Goods and Products Monthly inventory costs can range between $10,000 and $25,000, depending on your sales volume and current market prices. This variability is influenced by product demand, seasonal fluctuations, and the range of products you carry.
- Additional Fees There are additional fees for training programs, technology, and other items provided by CBD American Shaman that may be applied.
These ongoing costs are essential to budget for and manage as part of your franchise operations to ensure smooth and profitable running of your business.
CBD American Shaman Franchise Earnings
While specific earnings data for CBD American Shaman franchises is not available, we can provide an informed overview based on industry standards and franchise characteristics. In the CBD retail sector, franchises typically experience varying levels of success based on factors such as location, market demand, and the effectiveness of their marketing strategies. The overall growth of the CBD market and increasing consumer interest in natural wellness products generally support positive revenue potential for franchises that effectively tap into these trends and maintain strong operational practices.
However, actual earnings can be influenced by several variables including local competition, regional market conditions, and the franchisee’s management skills.
It is important to take note that due to the changing regulatory environment of the cannabis industry, gross sales and earnings will be highly impacted by the state and local regulations.
How to Open a CBD American Shaman Franchise
Becoming a franchisee with CBD American Shaman involves several key steps, each designed to ensure that you are well-prepared to operate the business successfully. Here’s an overview of the process from initial inquiry to starting operations:
- 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).
- Application and Preliminary Qualification Submit a franchise application form, which will include personal and financial information. The franchise team will review your application to ensure you meet the preliminary qualifications, such as financial stability and a genuine interest in the business.
- Discovery Day If your initial application is approved, you’ll be invited to a Discovery Day at the company’s headquarters or a local franchise location. This visit allows you to meet the team, learn more about the franchise operations, and see firsthand how the business runs. It’s also an opportunity for the franchise team to assess your fit for the franchise.
- Franchise Agreement Signing Once you are comfortable with the FDD, you’ll sign the Franchise Agreement. This legal contract outlines your rights and responsibilities as a franchisee and the franchisor’s obligations. You’ll also pay the initial franchise fee at this stage.
- Training and Setup Following the signing of the agreement, you’ll undergo comprehensive training provided by CBD American Shaman. This training covers everything from product knowledge and sales techniques to operational procedures and marketing strategies. Simultaneously, you’ll work on setting up your location, including lease negotiations, store design, and inventory acquisition.
- Pre-Opening Support During the setup phase, the franchise team will offer ongoing support, including guidance on store setup, marketing initiatives, and pre-opening promotions. This ensures that you’re fully prepared for a successful launch.
- Grand Opening and Operations Once your store is ready, you’ll plan and execute a grand opening event to attract customers and generate buzz. With the store officially open, you’ll begin day-to-day operations, supported by ongoing training and resources from CBD American Shaman to help you manage and grow your business effectively.
Each step is designed to ensure that you are fully equipped and supported as you embark on your journey as a franchisee.
Pros & Cons
Pros
Growing Industry: The CBD market is expanding rapidly, with increasing consumer interest and a projected market value of $20 billion by 2024. This growth provides a favorable environment for CBD American Shaman’s success.
Low Initial Investment: The initial investment for a CBD American Shaman franchise is relatively low compared to other franchises, typically ranging from $88,000 to $184,000. This lower entry cost makes it accessible to a broader range of potential franchisees.
Cons
Regulatory Risks: The CBD industry is subject to evolving regulations and legal uncertainties. Changes in laws and regulations could impact operations and require adjustments to compliance practices.
Market Competition: The CBD market is becoming increasingly competitive, with numerous brands and products entering the space. Differentiating your franchise and maintaining market share may require significant effort and innovation.
Dependency on Supply Chain: The success of a CBD American Shaman franchise heavily depends on the reliability and efficiency of its supply chain. Any disruptions in product availability or quality control issues with suppliers could impact your business operations and customer satisfaction.
Franchise Health: The overall franchise system appears to be in trouble with net location closures over the past couple of years.
