CBD is big business in the UK. At the same time, it's a relatively untapped marketplace.
There's a lot of misinformation and misunderstanding regarding the legality of this cannabis-related compound. It's kept the market niche: which is good for people considering exploring CBD as a new business.
The legality is pretty simple: you just need to understand the regulations.
The human body contains an endocannabinoid network of cannabinoid receptors that regulate appetite, mood, pain response, and memory.
CBD (or Cannabidiol) is a natural compound derived from the hemp plant, containing a high concentration of cannabinoids that help control the human body's response to pain while regulating mood and improving appetite and memory.
The hemp plant is a member of the cannabis family - but rather than producing the “high”-inducing tetrahydrocannabinol (THC) associated with cannabis, hemp contains high levels of CBD.
In the UK, CBD is legal (as a food supplement). A CBD product must contain less than 0.2% THC to comply with regulations.
CBD products are available as oils, capsules, sprays, vape-juices, tinctures, creams, soaps, and balms, and as soluble, water-based liquids. They can be taken orally or through skin ingestion.
Thousands of people around the UK rely on CBD for the relief of hundreds of symptoms. However, as most CBD products are supplied as food supplements, official medical qualifications are not required to distribute these high-value products.
Why Franchising?
Franchising provides access to hard-to-reach markets and a stable, reliable path towards setting up a new business.
Established companies offer recognizable branding, as well as an existing reputation for customer care, quality and innovation, giving you a head-start with future customers.
Franchising reduces the inherent risks faced by start-ups; giving your new business a chance to thrive.
Banks Lend To Franchises
Banks in the UK tend to favour franchise businesses - you inherit a track record of profit and growth that helps to reassure the lender of the intrinsic business stability.
Private investors generally consider franchises a lower financial risk. They have:
- A record of sustainable growth
- A business model that’s been tried and tested
- Potential to expand
Other stats:
- The CBD market in the UK will be worth as much as £1 billion by 2025
- Among wellbeing product categories, CBD is one of the fastest-growing
- 11% of the UK population have used a CBD product to treat a medical symptom.
Franchise vs. Independent
If given a choice, the public is more likely to purchase from a company they've heard of, making franchising a more attractive and realistic prospect for anyone going into business for themselves.
Around 50% of independent businesses run out of funds to sustain them within two years of going into business.
Franchising, on the other hand, offers the stability of an established business, providing a reliable, trustworthy route to growing a business.
Ready?
Explore our restaurant CBD franchises and CBD oil franchises. Get started on your new business adventure today.
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