A pair of companies are making advances in the ever-evolving cannabis industry through franchising models.
Unity Rd. and Curio Wellness have both made moves recently to push their brands forward in areas across the country. New Mexico, which allows medical and recreational marijuana sales, became the 10th state with a Unity Rd. development, as a three-unit deal was signed this spring.
The franchisee in the agreement is Joe Hernandez, who brings more than 25 years of real estate investment and business management experience to the company. According to a release from Unity, Hernandez has received municipal approval for one location in the city of Ruidoso and is awaiting permitting for the other two.
“We have been looking to enter the cannabis space for the past few years but knew we first needed to find an experienced and knowledgeable partner to help us navigate licensing, operations and compliance,” Hernandez said.
Unity Rd. launched in 2018 and Hernandez is just one of many entrepreneurs to have been signed on across the country. Another example is the business team of B.J. Olson and Adam Jorgensen, who’re planning to open a Unity Rd. location this summer in South Dakota.
Olson and Jorgensen said their partnership with Unity has been especially helpful in navigating the changing landscape of cannabis laws in their state. South Dakota is a state where both medical and recreational marijuana was approved by voters, but the latter approval was reversed.
Because of how the recreational cannabis ballot measure was written, the South Dakota Supreme Court moved to nullify its passage.
“When you’re dealing with a product that has a very high level of regulation both at a federal level and at the state level, and when that state level varies from state to state, you need a roadmap to follow,” Jorgensen said. “That’s where United Rd. can really add value, to help pass those barriers.”
Unity Rd. Franchisee Adam Jorgensen
“Being on your own, any time there’s a law change, it can send you into a panic mode,” Olson said. “United Rd. tells us ‘hey guys, this is just part of the industry.’ They do a good job of keeping our blood pressure to a normal level.”
Jorgensen and Olson, who have an agreement for one 2,500 square-foot unit, bring franchise experience from the cell phone technology industry. During their time in that line of work, they had discussed getting into the cannabis business and recently, they took the step forward into making it a reality.
“We looked at other sorts of dispensary, multi-unit businesses out there, but none of them felt right,” Olson said. “Then, we came across United Rd., it was the only nationally approved franchise. We learned about their structure and background, and it started to make sense for us with our wireless background. Their business was actually very similar to operating a cellphone-type store.”
Unity Rd. Franchisee B.J. Olson.
Franchisees at Unity Rd. pay a franchise fee of $100,000 and are required to have $1 million in liquid capital. The total investment ranges from $1 million to $2.5 million.
Meanwhile, on the east coast, Maryland cannabis company Curio Wellness is planning to launch a franchise operation through its retail dispensary brand Far & Dotter. The focus of Far & Dotter is providing a patient-focused experience, as it includes pharmacist counseling.
Helping lead the effort forward is new Far & Dotter President Greg Miller. After two decades of leadership in the restaurant industry, including McDonald’s, Jack in the Box, Whataburger and Taco John’s, Miller was recruited to the cannabis industry.
“I never thought I would leave restaurants, but I was certainly intrigued by the opportunity, with both the industry and Far & Dotter itself,” Miller said. “Because of the newness of the industry and the quality and skillset of the leaders here, I decided to make the change. The sky’s the limit in where the industry will go. Our current wellness center is already recognized as one of Maryland’s best dispensaries.”
In Maryland, medical marijuana is allowed and the state has decriminalized cannabis. Far & Dotter’s plans for franchise expansion is planned to continue across other limited license states, including Florida, Illinois, Massachusetts, Michigan, Missouri, New Jersey, Ohio, Pennsylvania and Virginia.”
“In medical cannabis, the regulatory policies are a bit different compared to typical retail services,” Miller said. “So, at the timing on that can be a bit of a moving target. But we’re in the process of working with several hundred different applicants, trying to see who would be the best fit to partner with.”
Far & Dotter President Greg Miller.
Miller said the company hopes to have the first couple of franchisees on board in the next few months. Over the next five years, the company intends to open 150 franchise locations.
According to Miller, based on his experience, the patient-centered approach will be an asset as franchising gets underway.
“There’s always an intense focus on the guest experience in franchising,” Miller said. “It’s important to be intently focused on what the guest, or in this case, the patient wants and needs from the brand.”
The financial requirement to franchise with Far & Doter is $750,000 in liquid capital.