Can a City Stop Me from Operating A Hemp-Derived Edible Business?

July 14, 2023

Yes – at least to a degree. But not as much as cities seem to think. A local unit of government, however, may not prohibit possession, transportation, or use of cannabis flower or products. Fortunately, Minn. Stat. 342.13(b) prohibits a local unit of government from prohibiting the establishment of a licensed cannabis business, but there […]

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UNCERTAINTY AND CANNABIS LAW

Obviously, there is a lot of uncertainty about cannabis regulation in Minnesota. Almost immediately after passage, there were directly opposing interpretations of the law and confusing information put out across Minnesota news outlets. For example, we are frequently asked these days whether smokable hemp flower can be sold. The Department of Health has issued guidance […]

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PROS AND CONS OF CANNABIS FRANCHISING

Franchising in the cannabis industry is fraught with risks. You should not buy a cannabis franchise unless you have done significant due diligence, consulted with both a franchise lawyer and a cannabis lawyer, and know exactly what you are getting into. People who buy franchises are often told in marketing materials that they get to […]

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HOW CAN I OPEN A CANNABIS BUSINESS WHEN IT IS LEGAL TO DO SO?

We do not like giving the lawyerly answer but we have to in this case – it depends on a variety of factors, including the size of the business, the rights you want to be able to exercise (e.g., wholesale, retail, manufacture, cultivation, etc.), and what you can qualify for. At some point within the […]

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Minnesota Cannabis Legalization and the Significance of Words

You probably already know that cannabis was legalized in Minnesota in 2023. Opening a cannabis business is not as simple as putting up a sign and stocking inventory. There are a number of things you should know if you plan to get into a cannabis business and we’re going to address some of those in […]

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Conducting A Franchise Appraisal & Determining Business Value

May 8, 2023

Franchisees may need to conduct a valuation of their franchise business for a number of reasons. Whether that’s to secure a bank loan for the business or for personal purposes, it is relevant for tax and estate planning. And of course, it is critical to know the value of a franchise business when looking to […]

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Can I Stop Paying Franchise Royalty Payments and Fees?

March 16, 2023

Franchisees frequently tell us that they are unhappy with their franchisors. This can be for any number of reasons — inadequate training, poor marketing, lack of lead generation, ineffective website, etc. Often, it boils down to the following statement: “I am making franchise royalty payments, but I’m not getting anything in return.”  These franchisees ask […]

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The Pros and Cons of Master Franchisee Relationships

In the traditional franchise relationship, franchisors work directly with franchisees to provide training, approve advertising material and otherwise support their franchisees through the various stages of the business. In some systems, however, franchisors delegate their support requirements to master franchisees, also commonly known as area representatives.  If you are a potential franchisee looking into a […]

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Pre-Litigation Considerations for a Franchisee Lawsuit Against a Franchisor

It’s a common question among franchisees: Can my franchisor impose obligations on me before I can take them to court? (e.g. in-person meetings, mediation, etc.) Franchisors commonly require that franchisees participate in meetings or mediation to try to resolve disputes informally before the franchisee can file a lawsuit or arbitration demand. Franchisees should be aware […]

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