Adapting a franchise business model is a quicker way to start CBD business

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As the prospects of starting a business in CBD products are attracting entrepreneurs, it is always advisable to check the state laws before you decide to buy or deal with CBD products so that you do not infringe the law even ignorantly.  Starting a business in CBD products has always been very challenging because, in addition to going through the usual grind of starting any business by obtaining various clearances and arranging for finances, it further entails navigating through complex legalities to start a manufacturing unit for extracting CBD oil. But things have now changed, and it is no more a necessity to take the manufacturing route for starting CBD business. Instead, you can take up a CBD franchise and start a CBD retail store for selling completely legal hemp extracts.  Taking up a franchise gives you a ready stage for showcasing your entrepreneurial abilities.

CBD products are completely different from marijuana in that it does not have any recreational value but packed with therapeutic and health benefits which makes it more of a consumer product. Selling CBD products is a safe business because it is completely legal to deal with CBD products obtained from the hemp plant. Since CBD is also available from the cannabis plant, which contains high THC and, therefore, illegal, it becomes imperative to have clarity about why CBD products obtained from the hemp plant are legal. The more clarity you have about cannabinoid and cannabidiol easier it will be to understand which CBD is legal and which is not.

What is cannabinoid?

Cannabinoids are chemical compounds found in cannabis and hemp plant that have some effect on the human body when consumed, and there are about 113 types of cannabinoids known to date. The compounds act on the cannabinoid system of the human body, which produces various effects, many of which are beneficial for health, including pain relief. Each cannabinoid acts differently on the body, and the compounds become distinguishable by the strains prevalent in each type like Cannabidiol (CBD), Tetrahydrocannabinol (THC), Cannabinol (CBN), Cannabigerol (CBG), Cannabidiol (CBDL) and Cannabichromene (CBS) to name a few. Cannabinoids differ in the psychological effects it can produce, and some forms are beneficial for medical use.

What is cannabidiol?

Cannabidiol or CBD is an active ingredient found in the hemp plant which belongs to the cannabis family, but it is different from CBD extracted from the marijuana plant. Although CBD is a component of marijuana, it does not cause high because of low THC content, which is not more than 0.3%. The World Health Organization (WHO) admits that CBD does not demonstrate any effect that can lead to its abuse and does not have the potential to make people dependent on it. Moreover, there are no reports of health-related problems linked to the use of pure CBD.  Therefore, CBD is safe for human use, and even if it contains a negligible amount of THC, its use is legal.

Health benefits of CBD

CBD is useful for relieving various common ailments, especially pain conditions that people knew for ages because there is evidence of its use in 2900 BC when people used marijuana for pain relief.  Since CBD impacts the endocannabinoid system of the human body that controls various functions from sleep to immune system response and pain as well as appetite, there are pieces of evidence available that CBD reduces chronic pain.

Common mental health disorders like anxiety and depression can have very serious effects on general health and well-being.  CBD oil has shown a high potential in relieving stress and anxiety. Even there are chances that CBD may help to control acne, and studies have shown that it also can reduce symptoms related to cancer. Researchers believe that CBD may also have neuroprotective properties.

Clearing the legal angle

Broadly speaking, CBD is legal in all 50 states of the US with varying degrees of restrictions. The Farm Bill 2018 has eased the restrictions to a great extent because now hemp and CBD obtained from industrial hemp is legal as per federal laws. It means that CBD products like CBD oils and hemp extract do not face any restrictions that existed even a few years ago and caused a lot of confusion about its legality. Industrial hemp is now out of the purview of the Controlled Substances Act and would remain out the sight of the Drug Enforcement Agency. Today, the Food and Drug Administration (FDA) shoulders the responsibility of governing the hemp industry and CBD oil.

Set up a retail store by taking a franchise

Overall, there is nothing illegal if you are selling CBD oil products in any form, whether tinctures, vapes, edibles in the form of candies, foods, and baked goods or topicals like sprays, creams, and gels that are popular for pain relief. But there are problems to sell CBD products online because of a lack of advertising options on social media and even paid advertisements to face the risk of suspension of accounts or bans.  Depending on organic content is the only way to propel your online business, but then again, you must follow the guidelines of the platform, which can, in some way, be restrictive for your trade practices. 

To enter the American CBD market that holds very good prospects for the next five years, it makes good sense to take the easy route of taking a franchise of any leading CBD franchise system and set up a retail store.  It will give you a ready platform to start the business that can otherwise be quite complicated and take a much longer time to launch.

However, as the FDA is devising regulations, the legality of the CBD industry is still in flux, and there are still many grey areas. As of now, the FDA does not tolerate marketing CBD by advertising its health benefits, but you can surely bank on its therapeutic uses to market the CBD oil products. If you are planning to start CBD business and have enough evidence to prove that it originates from hemp and not a cannabis plant, then you can be rest assured that there should not be any legal problems. The rest depends on your business acumen.