As a business model the franchise format is one of the most popular among today’s business owners. This is due to the set framework of the franchise. An entrepreneur buys the use of a pre-existing trade name and business blueprint. If the trade-name is already well-known and popular there should be a strong existing customer base. With a pre-existing business blueprint the vapor franchise outlet owner has the basis for building his business quickly.
The national vapor market is among the fastest growing businesses. Even with the U.S. government strengthening its regulations over the vaping industry, analysts expect to see continued growth. MSN Money states that the US is anticipated to continue to lead in the global e-cigarette market. The U.S. vape market is expected to grow to over $20.17 billion by 2025.
The strength of the e-cigarette market comes on the heels of the tightening of regulations on the tobacco industry and the new warnings issued about the dangers of tobacco products. Due to the health issues of second hand smoke, strict public smoking bans have sent many traditional tobacco smokers to try e-cigarettes. Currently there are few public bans on where an e-cigarette can be enjoyed. The strong warnings of the health issues associated with tobacco and nicotine in traditional cigarettes has created a growing number of smokers trying to quit and turning to e-cigarettes. There is no tobacco in e-cigs. The level of nicotine can be controlled by the e-cigarette user. Nicotine levels can vary from 0mg to 24mg depending on the e-liquid used.
With the popularity of e-cigarettes, more vapor franchise businesses have become available. With this, the vapor industry is still an unsaturated market. There are few competitors for new vapor stores. The small area needed to run a vape store gives this type of business the ability to generate high sales per square foot and needs only a few employees to run efficiently. Much of a vapor stores product sales can be generated through the stores website. This is also true for marketing campaigns. In a franchise business the marketing done by the main franchise can also help pull in business for the outlet store websites and brick and mortar buildings.
Although the current model of a vapor store is a small square footage and a handful of employees, some franchise chains are working to change the image. As vaping gains popularity the vapor market is looking to bring in new higher paying customers. Some vapor stores are moving away from the “store” only feel and moving to a more lounge feel. With upscale designs and layout, the new vapor store look wants the customers to not only buy their products but to experience the atmosphere of vaping.
The franchise model itself is a good business choice for entrepreneurs that want to own their own business without the hassles of creating one from scratch. With the forecast for continued growth in the vapor market now is the time to consider getting into the e-cig franchise business.
References:
1. MSN Money. “United States E-cigarette and Vaporizer Market Analysis, Estimation & Forecasts 2015-2025”
5 May 2016
http://www.msn.com/en-us/money/topstories/united-states-e-cigarette-and-vaporizer-market-analysis-estimation-and-forecasts-2015-2025/ar-BBpOZlG
