Attorneys should be familiar with legal issues surrounding franchising as well as the legal complexities of compliance as it relates to cannabis. “You want to make sure your business is not deemed a franchise without you knowing it,” said Gerhards, who is based in Philadelphia.Īttorney Jennifer Stallings Dewey of Detroit-based firm Dickinson Wright said finding a team of consultants is key to avoid becoming an accidental franchise. Providing a marketing plan or significant assistance in operating the business.
Eufloria recreational marijuana license#
A license to distribute goods or services or operate using the company’s trademark or commercial symbol.However, businesses with multiple stores could accidentally meet the definition of a franchise-and, if they are not compliant with franchise law, it could result in felony charges and rescinded deals with vendors and clients.įranchises are defined by three components:
Eufloria recreational marijuana registration#
Most cannabis franchise concepts in existence today are in states where there is not a franchise registration law. While there are a handful of companies intentionally building their businesses around the franchise model, there are others that could fall into the “accidental franchise” trap. “It’s another way to spread the risk, expose the brand-and (it) makes a lot of sense for certain kinds of brands,” said Kittay, who is based in New York. Still, several cannabis entrepreneurs are turning to franchising to help them expand their businesses quickly.Īccording to attorneys Eleanor Vaida Gerhards and Matthew Kittay of Fox Rothschild, franchising enables a cannabis business to: But because both marijuana and franchising are so heavily regulated, marrying the two is likely to be a complicated process. Building a franchised company around the rapidly growing cannabis industry seems like a natural fit-it can be a quick way for newcomers to get started with an established brand.
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