The Golden Leaf Holdings Company is seeking to make weed the next big thing in the United States, although marijuana is still illegal in most parts of the country.
Chalice Farms has reported that the giant weed company has opened dozens of stores in Oregon state. This turn out of events has been catalysed by Blackshire Capital, a venture Firm, signing a letter intending to franchise the cannabis giant. This move will boost a possible rapid development of stores throughout the Northern part of America.
Many investors are rushing in the hope of securing places in the new found green pastures; this is after the investment bank Cowen & Co. predicted that the sales from marijuana would have risen more than eight times in the next decade. Suddenly everyone wants to be the first one to create a name with this new investment.
The Golden Leaf’s C.E.O, William Simpson believes that Chalice will grow to the level of Starbucks and Macdonald’s food companies only that it will be dealing weed.
Even though most of the states’ and federal laws only allow the use of Marijuana for either recreational or medicinal purposes, the investors are optimistic about the unexploited potential in the weed industry. Chalice is believed to be the ultimate pacesetter with a task of creating a serene environment which will attract many new consumers and clear the notions that have been associated with the use of Marijuana for generations.
Simpson stressed on the good impression of the consumers on their response to their efforts. He stated that their most successful store averaged $400,000 monthly gross sales in 2017’s third quarter while their slowest averaged $100,000. The company is very optimistic that these figures will go higher in locations with fewer Marijuana stores.
Unlike food chains and coffee outlets, the franchise model will have to offer different products in different states. The state laws do not allow weed products to cross state boundaries. According to Simpson Golden Leaf companies will work out which products are legally suitable for their base state and produce them.
This investment might look like a chance to hit the jackpot for most entrepreneurs, but nothing comes easy as one has to pay some $50,000 one-time fees and 5% royalty fees. This fee might not be an obstacle since the Blackshire Chief Executive Officer Kevin Reed is aiming at opening about 40 stores within the next 24 months. The company’s strategy is to kickstart in Canada before venturing into the United States of America. Things are set to move swiftly when the Blackshire and Golden Leaf develop a joint management company to oversee all the franchises.
A massive investment of 25 million Canadian dollars which translates to 19.4 million U.S dollars is being set aside by Blackshire with the intention of facilitating possible operations between Canada and the States. This move will oversee the expansion of stores network and the production of the product.
William Simpson has a vision of creating something great that will last for decades, something that will globally associate with cannabis for generations to come.