How to open a CBD shop?

The cannabidiol (CBD) market is booming in Europe, and particularly in France. According to the Professional Hemp Union, since 2019, nearly 400 to 500 legal CBD shops have opened in France. Demand for CBD is growing rapidly. The market still offers many opportunities. So, how to open a CBD shop in France?

How to Explain the Success of CBD in Recent Years?

Cannabidiol, better known by the acronym CBD, is one of the many cannabinoids that make up hemp, just like THC. However, the substances differ in that CBD has no narcotic or addictive effects. On the contrary, cannabidiol concentrates most of the benefits of cannabis.

The Benefits of CBD

Cannabidiol has notably been the subject of various scientific research since 1940. Studies demonstrate the health benefits of cannabidiol. Among the proven effects of CBD, we can note its potential as:

• an analgesic : the cannabidiol molecule binds to the CB1 and CB2 receptors of the endocannabinoid system to inhibit pain perception;
• an anti-inflammatory : CBD significantly limits the reactions of immune cells to external aggression factors. This reduces, or even prevents, inflammation;
• a regulator of the digestive system : cannabidiol has antiemetic properties and soothes the contractions that occur in the small intestine;
• a regulator of the central nervous system : CBD rebalances the functioning of the central nervous system and thus combats psychological disorders;
• a calming and relaxing agent : cannabidiol stimulates the production of serotonin and dopamine in the brain. These neurotransmitters are responsible for well-being and relaxation, of both body and mind. CBD also acts by promoting the secretion of melatonin: the sleep hormone. This substance notably acts by regulating the circadian rhythm, commonly called the biological clock, which regulates the body's wake/rest cycle.

Furthermore, scientific experiments demonstrate the potential of CBD to stop the growth of tumors and cancers. Studies are continuing to reveal other health benefits of CBD.

The Different Uses of CBD

Due to its multiple health benefits, CBD would be effective in treating various everyday ailments. The cannabinoid would notably relieve migraines as well as pain related to menstruation, muscle pain, joint pain, etc. Cannabidiol would also be recommended to soothe the symptoms of certain chronic diseases such as multiple sclerosis, fibromyalgia, and osteoarthritis.

Cannabidiol would also have the potential to combat insomnia and other sleep disorders. The natural product would optimize the quality of restorative sleep.

Furthermore, thanks to its effects on the digestive system and its actions on tumors, CBD also proves to be an effective natural remedy in the context of cancer treatment. Patients undergoing chemotherapy could notably benefit from the antiemetic, pain-relieving, and soothing effects of CBD.

In addition to its therapeutic benefits, CBD would also act for general well-being.

The WHO recognizes all the benefits of cannabidiol as well as the absence of risk associated with its use. This explains why cannabidiol is gaining more and more followers in recent years in France and Europe.

Is CBD Legal in France?

The law governing the exploitation of CBD in France has undergone many changes over the years.

Indeed, until 30 December 2021, the production, sale, and use of CBD in France were governed by the decree of 22 August 1990. This legislation established:

• the THC threshold in CBD products at 0,3 %. Beyond this level, THC can cause euphoria and affect the consumer's behavior;
• the exclusive exploitation of fibers and seeds of hemp plants;
• the cultivation and exploitation of Cannabis Sativa L.: this variety of cannabis has a low THC level and a high concentration of CBD. It is the only one approved by the European Union.

On 28 July 2018, the French authorities decided to reduce the THC limit in CBD products to 0,2 %. This law applied only to CBD plants. Derived products had to contain no trace of THC.

Later, following the decree of 30 December 2021, CBD producers were subject to the prohibition on exploiting CBD leaves and flowers. However, this ban was lifted on 24 January 2022.

On 29 December 2022, much to the relief of CBD producers, the Council of State officially announced the legalization of CBD in France, in accordance with current regulations. CBD authorized for sale must notably:

• display a legal THC level lower than 0,3 %;
• be intended for therapeutic or well-being purposes.

Thus, the exploitation, use, and consumption of CBD are legally authorized in France.

The Steps to Follow to Open a CBD Shop in France

A CBD shop is a specialized commercial structure. First of all, you must therefore carry out the necessary procedures to declare and register your commercial activity. To do so, here are the steps to follow:

Business Creation

You must notably choose the legal status of your company. This type of activity is generally registered under the legal form SASU for individual entrepreneurs and SAS for those who start the business with partners.

Pay particular attention when determining the company name and the corporate purpose of the activity. In particular, avoid names and terms that evoke cannabis, marijuana, etc. Favor words that refer to natural products for well-being.

Indeed, this information is made known to the general public and serves notably as a reference for investors if you need to find financial funds. Banks and other financial institutions, and even individual investors, may hesitate or even categorically refuse to grant funds to finance activities related to cannabis.

Do not forget either that you must open a bank account. Banks are free to refuse your request if the business sector seems dubious to them.

Register and Protect Your CBD Sales Brand

After defining the name and drafting the corporate purpose of your CBD sales brand, you must create a logo related to it. To make your brand official, register the information as intellectual property.

Create Your CBD Shop           

French law authorizes the trade of CBD in a physical store or an online store. A brand can also have both a physical store and an e-commerce site.

Launch Your CBD Online Sales Website

In the digital age, more and more merchants launch their business online before setting up in a physical store. Most CBD sellers carry out their activities on the web. Be careful, however, with regulations. For information, the promotion of hemp is strictly prohibited on certain platforms, particularly on social networks like Facebook. If you choose online sales, you must therefore create your own dedicated website.

Know that online sales platforms for legal CBD in France are subject to strict regulations. Each CBD online sales website must notably mention the general terms and conditions of sale (GTC), the personal data protection policy, and legal notices.

Open Your Physical CBD Store

If you plan to offer your CBD products for sale in a physical store, pay particular attention to the choice of geographic location. Choose a frequented neighborhood, ideally dynamic and modern. Regarding the size, choose a sufficient surface area to be able to present all your products as best as possible and comfortably welcome customers.

Novice consumers and curious people generally need personalized assistance. Therefore, plan a space to receive them in order to answer their questions about CBD products, uses, dosage, contraindications, etc.

Promote Your Legal CBD Business in France

Whether you opt for e-commerce or selling CBD in a physical store, work on your visibility well. To do this, create a sign bearing the name, logo, and slogan of your brand. The visual elements must highlight and enhance the nature of your activity. Prospects must be able to recognize your products at first glance. If possible, try to make the subtleties around cannabis, drugs, and recreational use of hemp disappear. Stay on the theme of natural remedy for well-being.

Furthermore, it is important to refine marketing strategies. Pay particular attention to promoting the therapeutic benefits of CBD. Only deliver proven information. It is better to avoid stating information that is not substantiated, at the risk of being convicted for false advertising and deception.

Find Suppliers of Legal CBD in France

Before addressing the subject of suppliers, it is important to note, first of all, that CBD cultivation activities (production, exploitation) are completely different from the sale of CBD. The license dedicated to CBD producers does not allow them to carry out CBD trading activity and vice versa. The CBD seller must therefore find one or more suppliers holding an agricultural activity license to supply their cannabidiol store in the long term.

Consider, first of all, the quality of the products. Pay particular attention to the compliance of CBD with the quality and safety regulations in force in France. CBD extracts and derived products must come from Cannabis Sativa L. and have a THC level lower than 0,2 %. Otherwise, the product is considered a narcotic, strictly prohibited in commerce.

To ensure the quality of the product, ask for supporting documents that attest to the origin of the CBD and the CBD products offered. You must notably have all documents relating to product traceability.

Specific Provisions Concerning the Sale of CBD Food Products in France

CBD comes in different formats. In addition to oils, extracts (flowers, leaves, seeds, fibers, fruits, etc.), resin (pollen, hash), capsules, there are also specific products such as e-liquids, cream, gel, balm, and different types of CBD cosmetic products. Producers are constantly developing increasingly practical forms of CBD for easy use and increased effectiveness. Everyday CBD food products are notably part of this category of products.

Be careful, however, if you want to venture into the sale of CBD food products, you must obtain special authorization. Indeed, CBD foods are classified as "novel food". Possession of a specific approval issued by the European Commission is mandatory to legally offer this type of product for sale.

The Procedures to Follow to Open a Legal CBD Sales Franchise in France

If you do not wish to open your own CBD sales brand under your own name, you can opt for a franchise. The procedures are simplified, but you generally need to plan for a larger financial investment fund. Indeed, the entry fee can vary considerably depending on the brand. Also plan a sufficient amount for bringing the premises or your specialized website into compliance according to the brand's specifications.

Franchises generally have their own designated suppliers. You are therefore exempt from the task of selecting producers, brands, CBD and CBD product suppliers if you choose this option.

Once all the procedures have been completed and the regulations well understood, you can launch your legal CBD trading activity in France online or in a physical store. Be sure to stay permanently alert to news concerning CBD legislation. This allows you to develop your legal CBD sales activity in France as best as possible and to ensure that you operate in full legality.