At my company, we explore and reveal the best marijuana business models and broker the sale of cannabis businesses. I speak with a lot of people along the entire supply chain and I would like to reveal some of what I’ve learned.
In this series, I will share the strategies that I’ve picked up from some of the fastest-growing cannabis and CBD brands for launching and growing a CBD brand.
Here’s the lay of the business landscape and what I’ve found to be the best business and marketing opportunities in the cannabis space right now.
Who This Is For:
1. Current dispensary owners and marketers looking to expand their businesses.
2. Turn-key franchise buyers who don’t have experience in the industry.
3. Startup mavericks and marketers looking to shake things up with their unique spin.
Licensing Agreements: Interstate Commerce Loophole
While interstate commerce in cannabis is not legal, licensing agreements may be one of the best ways to do business across state lines. Here’s how it works: You can facilitate a licensing agreement where brand A grants brand B the right to produce and sell A’s products in B’s state.
Let’s say your business is a publicly traded, multistate operator. Like many state license holders, you’re looking for opportunities to expand into other states. To do this, you need partners in production, cultivation and retail across state lines.
Here’s a real world example: BaM Marijuana is a publicly traded, multistate operator in four U.S. states. Like many state license holders, it is looking for opportunities to expand into other states. To do so, BaM in Nevada partnered with G Pen in California. G Pen essentially crossed state lines from California into Nevada using this tactic.
The two companies entered into a licensing agreement, and BAM now produces and sells state-compliant cannabis products that