BC Liquor and Cannabis News 2022 Year in ReviewDecember 14, 2022
Cannabis Council of Canada Calls on Feds to Provide Immediate Financial Relief for Legal Cannabis IndustryDecember 20, 2022
Buying a cannabis license (and store) rather than starting from square one has many advantages. When you purchase a license, you are almost always buying the cannabis store as well. The cannabis license, store’s assets, and lease are transferred to you, as the new owner.
Benefits of Buying a Turnkey Cannabis Store
Compared to starting from scratch, buying a turnkey cannabis store provides many benefits:
- A lease has already been secured and the location has been established
- The application process is much faster because the floor plan, site plan, store name, and proposed signage have already been approved provincially.
- Public consultation isn’t required and municipal or Indigenous government has already provided license approval recommendation to the BC Liquor & Cannabis Regulation Branch
- A business license from local government is already in place
- The cannabis store is already set up and furnishings and equipment are in place
- Product is already stocked
- The store already has trained employees, so initial employee acquisition and training may not be necessary
- The business likely already has an established customer-base
Downside of Buying
While purchasing a cannabis store is attractive if you’d like to get your business up and running quickly, there is a downside to consider.
- It can be more costly than starting a new store
- You have no control over the store’s location
- You have less control over the store design and layout, although you could renovate if you can afford it
- You have less control over branding and brand identify because they have already been established. Rebranding is possible though may confuse customers
- Current employees may not be suitable, or react positively to change
- When buying a cannabis store, you’re also taking on any debt and/or financial issues
Steps to Buying a Cannabis Store
The main steps to buying a cannabis store are as follows:
- Find a cannabis store for sale in BC (Contact Rebecca Hardin, CEO of Thrive and ask about stores for sale)
- Review details of the sale (what’s included in the sale?)
- Hire a lawyer to review the terms of sale
- Hire an accountant to review the financial statements
- Existing licensee initiates the BC cannabis license transfer including providing the proposed licensee’s business name and email address
- If the proposed licensee meets eligibility criteria, they must complete an application, which entails providing: a CRA business number, BCeID login information, information about the applicant (and any directors, shareholders or partners), information about other licenses applied for or held by the applicant or their associates, consent to background check, and declaration of connections to federally licensed cannabis producers.
Thrive Makes Buying a Cannabis Store Easier Than You Think
Whether you’re considering starting a cannabis store from scratch or buying a cannabis store and license, get the team at Thrive Liquor & Cannabis Advisors on your side. We have insider’s access to cannabis stores for sale in BC. We help facilitate the sale by matching motivated buyers with sellers. Because we vet both parties to find the right fit, 97% of our transactions close.