The franchise business model offers hemp business owners the opportunity to grow their brand nationally while reducing their startup and operational costs. It offers prospective hemp franchisees the chance to own their own business while benefiting from an established brand and operational system. But a poorly created franchise system or an “accidental” franchise, can expose hemp businesses to the risk of regulatory investigation, litigation, and the loss of key IP such as trademarks and trade secrets. Conflicting state regulations and the lack of significant federal guidance makes franchising a hemp business even more complex.
This panel will discuss the risks and rewards of growing a hemp business through franchising versus other distribution models such as licensing, distributorships and commissioned sales agents. It will explore the patchwork of state franchise and business opportunity laws and unique challenges posed by the nature of the hemp industry.