Episode Transcript
WEBVTT
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It's time for another episode the Franchise
Business Radio Show, broadcasting live for their
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probosiness channel studios in Atlanta, sponsored
by franchise intellect. Knowledge of the franchise
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community for franchise selection. More Info
at franchise intellectcom, also made possible in
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part by franchise dot city, a
better way to buy a franchise. More
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Info at franchise dot city. And
France, serve the world's largest franchise consulting
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and expansion organization. More Info at
Frand servecom. Now here's your host,
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certified franchise consultant, Pamela Curry.
Hello, this is Pamela Curry, franchise
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consultant for aspiring entrepreneurs looking to find
a franchise that a lines for them,
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as well as being the founder and
host of the Franchise Business Radio Show.
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The Franchise Business Radio show was founded
to be a platform to bring business professionals
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together to connect, educate and collaborate
to serve the franchise community and those considering
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franchise ownerships. I'm excited about today's
gass. Today we have two gas being
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interviewed on a topic that some may
consider see a highly debatable risky topic and
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all others may see it as an
area of change, growth and vision of
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vast business opportunities. The business sector
that I'm referring to is cannabis. Let's
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welcome ourcast and Co founders of cannabis
ten acts, Jason Trump and Holly Ford.
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Welcome to the franchise business radio show. Thanks for having us, you
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know. Thank you absolutely. Before
we dive into the interview, I'd like
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our listeners to learn a little bit
more about you, Jason Helps, a
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little bit about your background and yourself. Sure. So, in you know,
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prior to the canvas industry, I'm
you know my family business. I'm
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second. I've been enfranchising my entire
life. So I grew up second generation
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franchise or. You know. We
ran a hundred franchise locations and, you
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know, I got into a merging
markets. We made an exit from that
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company. Sold it's to a larger
brand. You fold it into seven or
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eight hundred locations they have now,
and we went into emerging brands. So
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started working with hundreds of different franchise
I was looking for my next things and
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can across the cannabis industry started.
I was also writing for forms at the
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time. So I started doing a
lot of you know who were heavy players
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in the industry in Canada and the
US and a couple of the countries and
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investment circles. And then in the
franchising space I came across Hollie Ford and
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a couple different locations and other countries
actually enfranchising conventions, and she was something
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of a you know, a mini
celebrity and the franchise consulting world, you
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know, had been able to do
a brand, a franchise brand, turn
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around and really just explode the brand
and I realized, you know, I
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was entering an emerging space where there's
pretty much at the time there was really
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only one franchise in canvas, inish
tree in Canada that I was working with
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and one and that is where holly
entered the picture. I'll let her tell
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you about her haven't real world class? Yeah, brought it. Let it.
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Let a great saguay A, holly, tell us. Love that about
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yourself, rock star. All right. Well, Gosh, yeah, I'm
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just before I even began. I
just I am extremely grateful that I met
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Jason and his innovation and leadership in
Canavaspace, you know, as exemplary.
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So I think he definitely down played
his role in this industry. But yeah,
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backing up a little bit, I
began, you know, kind of
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my career, if you would.
I get a lot of rioting and one
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and industrial television awards and things like
that, and stay home with my children.
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So I was doing things from home. I was creating website and I
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started working on creating businesses for people
at a consultation basis. My husband died
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and still at a one year old
child. So I went into a business.
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Then try started working with the company
where I was building, you know,
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a business for them. Basically,
it was an e commerce business.
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We got it from zero two a
million and in the very first year out
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and it was actually a prepared this
products business. So it was kind of
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a good feat to see that from
there. You the consultation was over the
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periods, ever, in two years, and that owner also owned a franchise.
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He owned a you know, a
strong franchise, had a around ninety
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hundred locations of that time I came
on board. He says, you know
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what, do what you did with
this business and clean up, you know,
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the the wet behind the ears,
and let's make something out of this
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so I went in and we,
you know, basically fired this l team,
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started this thing over again, redid
everything in that business that became in
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one year of that work we were
in franchise five hundred, I personally,
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more than they had sold in the
prior ten years combined. To be the
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number ended up being flouting an eighteen
months it's sold forty six of them and
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I think that was a lot of
fun. The biggest advantage, I thought,
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to that company was we took the
resale program from literally thirty Fivezero for
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a franchise to over seven hundred grand. Because what I noticed with people really
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they build these businesses and they don't
realize the value they have in the business.
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So with a valuation team, started
actually the business college, the new
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wing at University Cincinnati, and really
got my handle on valuation. So from
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here I was going to enter in
the world of schooling the brokeragees. One
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of them let out to California.
They wanted to hire me to help create
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resale programs for a be four hundred
franchise brands and it was a salary position
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and I had enough entrepreneurial backbone that
I wanted to do it myself. So
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I launched very infirm, as in
international business brokerage, you know, had
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a great inventory. My goal the
first year with ten exclusive contracts. Right
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I had twenty four year. So
it was really exciting. I'd met up
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with people that had given me words
from the franchise development and and said,
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hey, why don't you, you
know, come in this brokerage and you
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can. You can do lots of
resells here and all the rest. Got
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A great inventory. He did that
and and I was struggling because not because
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the business was in growing, but
because I needed more hand that I could
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trust to get this thing growing.
So I'm at a franchise, you know,
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convention in Cuba the first time and
that Jason there knew what he was
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doing, was very pressed with his
work, and met him a second time
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six months later in Campcoon, and
at that point we started having a lot
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deeper conversations. But as we got
to know one another, I was convinced
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to it is the perfect person I
was looking for. There's Arian to really
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take this thing to the next level. And and all the while, and
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being known to me, he was
saying, wow, she's working with she's
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working with the top franchise team in
the country franchising business as. Wow,
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that would be great on the cannabis
nes. Needless to say, one we
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did, you know, hire managing
director for Zarian and, you know,
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kept it floating and whatnot, but
all of the explut into the basket of
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cannabis and I've been incredibly lucky to
be able to enter this market in with
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even such knowledgeable partner. Thank you
very much. Think you're sharing and obviously
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two great talents come together and Co
founded the company cannabis ten X, which
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is America's first cannabis broke rage and
only broker cannabis business. So her listeners
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think cannabis mergers and acquisitions. Their
services will help you franchise your Cannibas.
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This is concept or assistant acquisition or
sale of an existing business. Jason Holly
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cofounded candids ten X and have established
a deep network of growth oriented business owners
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with the focus to be a source
for creative expansion solutions, franchise development,
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management, consulting, private equity and
capital investments. And we're going to go
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ahead and do a deeper dive and
learn a little bit more about this industry
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as well as the cannabis x service
as an offering. Guys far listeners,
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candidates industry, talk to us a
little bit about this sector and, if
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you don't mind sharing also some of
the the regulation side at all. Sure.
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So the industry is obviously it's very
near. So some of the people
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in the industry still refer to some
of the markets as mature, but if
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you really put that up against the
franchising end of the world, it's a
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hundred years old over over here,
and you have, you know words that
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you use in the Cannis Industry,
people from the franchise in industry, like
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yourself, Dam and Austin, you
know where, like you call that saturated.
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So you know, with that in
mind, I'll say you know,
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on the industry around the United States
it's federally illegal, which a lot of
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people at all were but it's legal
in each state, which means each state
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makes their own regulations, and there's
about thirty seven states that it's legal.
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Some of them are recreational, so
anybody can walk into a store and buy
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it. That's, you know,
of age, sort of similar to a
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liquor store, and some of them, our medical state means you have to
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have a medical ID card, issues
from MD to be a patient and then
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you use that patient ID card to
enter any of the dispensaries in a medical
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state. But, having said that, some of it. So you can
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actually divide the country down the middle, on the west side in the east
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side, and you can see a
clear difference that over where it started in
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the West, in Colorado, California, you know, Washington organ they're more
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of a free market states, you
could say. You know. So there's
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a lot of recreational companies that are
popping up and you can you get a
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feel for what you normally would see
in an industry where it's entrepreneurial and not
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incredibly expensive and, you know,
not the barrier stand you're a little smaller,
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the competitions little stiffer, the visions
acumenities to be a little more on
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Onn par and at the East Coast. For the east side, it starts
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to get more, a lot more
stringent, more medical states rather than recreational
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and it takes it takes a little
bit more, you know, yes,
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loops to get through the regulations in
the medical states. So we work with,
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you know, franchise candidates that want
to come in and and work their
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way in as fast as possible.
Making turnkey models. And I'll pause there
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and if ally wants to add anything. Yeah, no, I think you
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covered that really well. It's,
you know, big picture. Yes,
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there's a high barrier dentry. There's
licensing their state relists level, but the
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clients that we work with are vetted
there. They're vetted for their experience in
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cannabis. Their vetted for their profitability, their differentiation and and the services that
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we provide to assist them and work
together to get licenses for the candidates all
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the way down to the municipal level, finding where that location needs to be
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and with all of all of the
you know, teeth cross and the eyes
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dotted, which is very, very
complicated, but again, high buried or
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to entry, safety and huge,
huge, huge opportunity. So that actually
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it's a very nice secway, holly, into the fact that makes tip.
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May Not know that they really are
different tight of canniba franchise business models.
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There's different sides to the sector.
Would you are changed? Can I tell
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share a little bit more about the
different tight of franchise models that are out
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there? Sure? Yeah, so
you have a supply chain, as in
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any other industry, and when you're
vertically integrated to basically that you own your
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entire supply chain. So we have
a couple concepts that are complete models,
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so at the vertically integrated that means. And then we have each section of
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this sectioned out into a different franchise. So you'd have cultivation on on the
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you know, the the production side, and they're actually growing the plant from,
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you know, from either indoor or
outdoor or in greenhouses, and there's
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many different models within that one that
one framework there. And then you go
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to process and you're manufacturing, where
they're extracting the you know, Cann of
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annoids from the plant and turning it
into vaping products or edible products like dummies
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and chocolates and, you know,
mixing them and packaging them and shipping them
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from from manufacturing into until the next
phase in the supply chain or franchise model,
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which is can this part can vary
by regulation, but you have delivery
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that can go direct to consumer.
Sometimes it needs to go to the retailer,
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but you have some sort of transport
from that phase to the next part
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of a supply chain. And then
you have a retail and that that's obviously
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retail outlets, storefronts and that can
also that has a couple you have digital
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elements to that. And then there's
the delivery, again can be added on
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the other side of retail that.
You know, they require a retail storefront
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and then you can deliver again to
the front door of your consumer or have
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have it actually purchased through an APP
where they have to come into the store
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and buy it curve side or pick
it up in store. So that's that's
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general overview of this. Yeah,
from the I think I think pam he's
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stayed absolutely perfectly. So obviously there's
a lot of different areas, but but
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you know, being really open about
what we're doing here. From a franchise
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component, obviously from an investment we
can insist anybody in any of those areas.
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From a franchising component, again,
were the only ones doing this franchising
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cannabis. But we have models that
we've, you know, highly vetted,
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that have acturing retail and delivery.
So you know, when your clients are
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looking or you, who ever's watching
this and listening to what we're saying,
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I think you're interested in and your
and your your interests are specific. Maybe
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want a testing lab, you know, wouldn't that be great for somebody use
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in medical fields and find when we
have that we can provide those areas for
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you to look at. HMM.
Okay. So having that kind of tegway
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into Canada ten X and your brokerage
services and specifically what you do, I
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mean you want to share a little
bit more about Canadas ten x and the
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service that you provide? Yeah,
we sorry, okay, we've got three
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parts canvas ten X. we've got
the Bicell, you know, and that's
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obviously mergers and acquisitions. We have, you know, sales that we have,
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you know, in our inventory of
forty million and down to five hundred
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Tho. So again, if somebody
wants to sell their business, obviously,
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you know, we can work with
them. We charge six percent on that,
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which is way under industry, you
know, at very and when my
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brokeradge it was twelve percent. So
it's a very fair valuations are done you
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in health and with our teams of
counting out screws. So we can help,
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you know, those sell their business. We can help buyers that want
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not a franchise for the Sandal and
business. That's that area and the second
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area is obviously franchising. That's what
we're here to talk about today. We
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franchise individuals businesses. Again, you
have to have the tops. We don't
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just want anybody. We really want
to select businesses that are are, you
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know, profitable, replicable and extremely
strong, and we use the team to
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do that. Really briefly, we
use here all tests and bombs. Our
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lead attorney, okay, mine,
an in from from Zary and prior Harold,
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is the franchise attorney of the year
this year. It's got forty years
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of experience now. He's franchise seven
cannabis models with his team, the we
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kit Kit Vincent. He's great,
great guy. He's he's done operations for
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Hogg about seven eleven, you know, a mere clear pand express. You
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know they are. They are fascinating, you know individuals, but they create
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a heck of a product and and
that with our development team. You know
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that. We give them a custom
website and videos and all of the broker
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collateral they need to sell the franchise
and, of course, or development team.
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Inside we've got an inhouse team of
highly trained cannabis brokers and we use
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a very, very select franchise brokeridges
franchise city is one of the brokeridges that
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we have chosen and we we are
very splective about that, because this is
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a highly regulated industry. We need
people that have a good, strong intelligence,
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that really care about their clients.
They're going to do everything for their
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client to make sure that they're able
to come to, you know, get
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the the the value of their investment, that they're able to, you know,
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be safe in the legal you know, can strength of the of this
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industry and you know, anyway.
You know I'm going into too much detail
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here, I understand, but that's
our that's our franchising arm and then our
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third arm, obviously, is investments, and investments we've done a lot of
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the investment space. I think this
is a good place for Jason because he's
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really taking the lead on all the
investment angle. Yeah, when we first
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launched cannabis ten x franchising was we
way or way more early than it is
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now. It's actually looks it only
looks less early because we forged the path
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to to where it is now.
So it's in time. We were working,
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you know, we wanted to stay
incredibly highbrow. I was coming from,
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you know, selling large franchise company
and I was looking to buy another
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large franchise company or create one.
And you know we so I was talking
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to founders in the cannabis space that
were incredibly strong that would that I thought
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would make a great franchise or partner. But they're they're really operators, corporate
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offices are dealing with operating their stores. That's not the way that you and
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I understand franchising. It actually becomes
its own corporate entity that's a franchise or
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support entity. That wasn't in there. So we were were we were that
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for them. So in the beginning
we were doing capital pitch events and covid
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happen around the middle of this.
So we write when covid happen. Actually
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in all these five events became virtual
events. We were just launching our capital
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pitch event and did it virtually pretty
much before everyone was doing virtual against and
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exploded. We had cheach Marin from
cheach and John on as a special we
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had Bruce Linton, the founder of
cannopy Growth Corporation in Canada. That's the
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largest cannabis company in the world,
and we had been called by the media,
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called us the sharp tank of cannabis, and Kevin Harrison jumped in to
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get it and sa sheets was our
our key note, and you're not going
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to not cheat all sour but yeah, what a what we was an amazing,
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fun little run. But what we
did there was we were able to
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hand select franchise and these pitch events
were used. They were worldwide. We
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had representation, you know, Fifteen, twenty countries. Our last winner of
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the last event we did was the
German company called hands HNS. Just you
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know, we had we had sharks
that were really beating these businesses up and
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what happened with that was we were
Abe to get from inventory some wall of
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thought businesses that we could franchise with
his expert team that we had brought in.
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And so the first one happened,
you know, and then the second
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and then and then, you know, obviously more and more people wanted to
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be franchise and at that point we
just took a step back. We wanted
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to make sure that we were franchising
the concept there were going to stem the
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growth of this industry. And you
know, you can have ten stores,
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only be great, but if you
don't have to all the elements in place
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to be a strong franchise or now, and as the industry matures. We
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kind of push those aside. But
what we have in earn betry now,
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I would say, are best less
yeah, absolutely, absolutely. And you
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know what, and you're hitting on
several things there. I mean this is
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for a forever changing landscape right due
to regulations, friends and really just a
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lot of people needing to get educated
on it as a possible business sector.
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I know you don't have a crystal
ball or anything like that, but with
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your knowledge and experience and any any
upcoming trends that you would like to share
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or what you think may happen?
Yeah, there's definitely I think the hot
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topic of each year shifts around the
idea of being the first in so each
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state when they open up they there, they very inclined to choose people who
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have proven themselves in another state.
So multi state operators will be the first
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ones applying for licenses in many cases
and some of the states they don't want
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to send their their revenue out of
the state. They wanted to stay in
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the state. So a lot of
that becomes creative M A, strategic partnerships,
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that kind of thing. So acquisitions
teams will contact us to find opportunities
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and upcoming states and we work very
closely with each new state that's coming online
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because we you know, I often
I use a surfing analogy for this part.
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It's like you want to be on
the crest of the waves to drop
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in and actually ride the way.
Being on the crest, sitting still is
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how you crash. So the crest
of the wave, I believe, is
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what it in a new state,
is when the new state opens up and
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when it's federally legal. That's the
real inflection point where you want to be
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paddling with some the some momentum and
the way. So if you have five,
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ten, fifteen, twenty locations,
the exit options for you are going
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to be triple to ten times the
valuations that it was the year before.
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Tenne yes, which is and you
want to ask something. Yeah, I'd
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love to. It's okay. There
there is what Jason said is there's really
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powerful. So we've seen this happen, you know, three dozen times now
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to stay opens back and how that
action point comes very early on. There's
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going to be a second way.
There's can be a third way, especially
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as restrictions open up and etc.
The market share isn't even defined yet,
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because until it's federally legal. A
lot of people are sitting on the sideline.
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So, but but we watch this
over and over, stay after statements.
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Sure, and those early doctors selling
out for x right. So so
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we layered our business with the team, but it's on Capitol Hill. I
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won't go into to the harbor.
Will be loved to share that with your
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viewers as they're coming in and interested. But they sit on capital. He'll,
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they write the legistration and a lot
of state it's us, you know.
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We know what's happening and we know
that we can franchise in certain states
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before anyone knows. So it's really
exciting because then we can get in,
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get our partnership set up, then
they go online franchising and then all of
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our clients get get the benefit for
that early doctor. Very nice. Anything,
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I mean anything else that you think
there would be value. I know
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there's. We could go deep on
so many levels and so many different areas.
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And you know you guys did being
the you know, America's first candidates
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brokerage and really the only brokeer canvas. You know business out there like that's
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canvas t x coming in with wealth
of knowledge will be incredible business. Coaches.
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Anything else you'd like to share with
our listeners to May want to explore
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this one? Sure so. If
they're new to the industry, one of
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the things that happened did that small
mom and pop shop trying to get a
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canvas license in the in a state
when it first opens up, it's got
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a really slim chance of getting that. So what we've set up here is
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we've provided resources by putting together a
team that ranges from you know, we
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have over five thousand actual investors in
our network. We have family offices that
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are included in that. They run
funds that range between ten million to a
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hundred million. Two groups of funds
that are that size teaming together on some
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investments and we put we've put a
team together, like you mentioned. There's
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some of them that sit on capital
hills lobbyist that can actually influence the law
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at is being written. They wrote
the bill in several states. We have
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state to state wrap around services that
help our franchise ors grow to really put
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the turnkey phrase to its to the
test there. You know, they have
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everything that a small business owner would
never have access to. That the huge
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conglomerates or, you know, a
fund to Hedge Fund would have. We've
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given those resources that are usually reserved
for the elite Hedge Fund type business launches
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and package them together for a small
business owner to get into this and do
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it right and do it fast and
get it right the first time. So
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that, I think, in an
unheard of opportunity in this industry and it's
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going to be probably a hundred years
of growth, you know, like that
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it's like out we had a roaring
twenty s with our our when we did
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these live events, because it's this
prohibition is very similar to surround it that
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are going to better changing and we're
not. So it's really the best book
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want to find and was created from
wanting to find that and not finding it,
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so we created it. M Wealth
said, think thank you to the
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summary. I do also want to
share with our listeners if this is something
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that you want to explore, whether
you are currently a cannabis business owner,
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want to take that concept and franchise
it, or you're something to you're interested
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00:27:40.880 --> 00:27:44.160
in understand how do I get into
the sector? How do I become a
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franchise Z of one of these business
models? Obviously that's what we do at
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Franchise City, as a franchise consultant
and that franchise city, we have formed
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a very nice business partnership with cannabis
t X. please don't he takes reach
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out to us. We would be
happy to put you in touch with the
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needed parties or at cannabis ten X
so you can explore and identify whether or
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not this is a good few and
really aligned for you. With that being
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said, Jason and Holly, thank
you so much. You've just been a
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wealth of knowledge regarding this this industry
sector that I think everyone is interested in
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trying to understand and wrap their arms
around, and just you got such depth
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and breadth of knowledge that hopefully what's
very helpful to our listeners. Appreciate you
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being guests. You Know Sea.
Thank you for it was it was really
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great. I think, honestly,
the people out there that are looking for
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an opportunity in the highly regular brain
I think, because we've got the answer
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for them and I think for Njoy
City, obviously, again very elite.
353
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Select brokerage is is a path,
it's a white it's going to bring your
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money in a safe way today diversify
into the fastest growing industry the history of
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business. Well said. Well I
just want to say thank you to our
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guests, to thank you for our
listeners for tuning in. It's been another
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00:29:18.039 --> 00:29:22.000
great episode of the Franchise Business Radio
Show. Again, this is Pamela Curry,
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00:29:22.200 --> 00:29:26.640
the host of Franchise Business Radio,
as well as being a certified franchise
359
00:29:26.680 --> 00:29:32.640
consultant with Franchise City. Please remember
that if you or someone you know it's
360
00:29:32.640 --> 00:29:37.160
considering franchise ownership, then don't feel
like you have to navigate those waters all
361
00:29:37.200 --> 00:29:40.680
by yourself. There is a lot
to learn, whether it's in the cannabis
362
00:29:40.680 --> 00:29:45.160
sector or in another sector. I
specialize and helping individuals on sellecting a franchise
363
00:29:45.240 --> 00:29:51.119
and being effective and doing their due
diligence so they can make an educated and
364
00:29:51.240 --> 00:29:57.039
informed decision around franchise election. So
franchise ownership is something good like seriously pursue.
365
00:29:57.079 --> 00:30:02.319
Feel free to contact me for a
compliment tree franchise confrontation. I would
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00:30:02.359 --> 00:30:07.799
welcome be in a resource to you. Simply email me at Pam at franchise
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00:30:07.079 --> 00:30:14.839
intellectcom or free call tex eight four
seven nine seven, zero, eight seven
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00:30:14.960 --> 00:30:18.519
six five. This is the franchise
it's a radio show signing off a platform
369
00:30:18.640 --> 00:30:25.160
for bringing together business professionals to connect, educate and claborate to serve the franchise
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00:30:25.200 --> 00:30:32.759
community and those considering franchise ownership.
Thank you again for joining Pamela Curry and
371
00:30:32.799 --> 00:30:37.119
her guest for the Franchise Business Radio
Show sponsored by franchise intellect. Knowledge of
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00:30:37.160 --> 00:30:41.720
the franchise community for franchise selection.
More Info at franchise intellectcom, also made
373
00:30:41.720 --> 00:30:45.480
possible in part by franchise dot city, a better way to buy our franchise.
374
00:30:45.599 --> 00:30:51.319
More Info at franchise dot city and
friends serve the world's largest franchise consulting
375
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and expansion organization. More Info at
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