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The industry was valued at about $7 billion in 2020, but is projected to grow rapidly over the next five years as the regulatory environment around CBD products becomes more favorable and as consumers become more comfortable with CBD products. Their main competitors are other CBD franchises like CBD Authority and CBD American Shaman. They also compete with the recreational marijuana industry, which is only legal in a handful of states but is also expected to grow over the next several years. The initial Franchise Fee is $5,000. You have to pay this upfront fee when opening a Your CBD Store franchise. The estimated total investment necessary to begin operation of one of their franchise ranges from $66,350 to $82,450. The following costs are part of the upfront costs included in the initial investment in a Your CBD Store Franchise. Many of these are one-time fees that are needed to launch the franchise. Owning a Your CBD Store Franchise Requires Ongoing Fees. Advertising Fund Fee: 3% of wholesale product purchase costs Local Advertising: At least 3% of gross sales per quarter Royalty Fee: 2% of the wholesale cost of products None of the Your CBD Store locations opened their doors until 2020, so its franchising company did not record any operating income in 2019. The franchising company recorded $66,571 in total income in 2020 but since total expenses amounted to $109,320, the operating income was actually a deficit of $42,749. Most of the expenses ($96,842) are accounted for by legal and professional fees, which can be viewed as more of a short-term expense that can go down over the next few years as the legal questions surrounding the CBD industry get resolved. The CBD industry is still new and while it has grown tremendously over the last few years and has the potential for further growth, there is still a lot of uncertainty surrounding its future. 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Aired: May 11, 2025
