Vape Store Franchise-The Next Big Thing
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2015-02-11 18.48.25For many industries the franchise business model is one of the more popular business formats used. This type of business model is a unique way for an entrepreneur to establish a business quickly and easily, and to receive continued ongoing support. One industry that the franchise model works well for is the vaping industry.



The vaping industry is one of the fastest growing markets worldwide. In an article on CNBC, Bonnie Herzog Wells Fargo Securities’ Senior Tobacco and Beverage analyst states that the retail vaping industry forecast for last year was at least $3.5 billion. This is doubled the estimate of $1.7 billion that was forecast for 2013. The vaping industry is a market that experts feel will only continue to grow despite a tightening up of regulations.



The popularity of vaping has increased due to several reasons, including the downward spiral of traditional tobacco products. With the many reported health risks now associated with smoking tobacco products and the strong anti-smoking marketing campaigns, many traditional tobacco smokers are turning to vaping to quit or reduce the amount they smoke. Other influences include the strict bans on public smoking of tobacco cigarettes and the high cost per pack. There are currently few bans on smoking e-cigarettes in public. At the moment the cost of e-cigarettes and vaporizers can be significantly less than traditional tobacco products. This is partly due to the reuse factor in many vaping products.



Due to the growing need for vapor stores, the number of vapor store franchises has also seen an increase. Like other industries the franchise format works well for the vaping industry due to the ease in startup and ongoing support for the outlet owner, and that the main franchise still owns and has control over the trade name and product supply. When an entrepreneur buys into a franchise outlet, he is buying the pre-set trade name, products, services and entire system for operating the business from the main company. This is far easier than starting a business from scratch. The other benefit of a franchise is if the trade name and products are already well known there should be a pre-existing customer base and a positive brand image.



The main franchise, the franchisor, helps the entrepreneur, the franchisee, with much of the initial set-up and day-to-day running of the business. Some of the main support the franchisor may give to the franchisee can include finding a location for the business, financing, operating manuals, initial training, personnel, and marketing. Some of the ongoing support may include newsletters, toll free numbers, websites, workshops and seminars.



There is a growing demand for vape shops due to the increase in popularity of vaping. Experts in the industry feel that the demand for vaping products will continue. As is with the vaping market, franchising has become the popular go-to business format in many industries. With the popularity of the franchise business model and the growing demand for vape products it appears that vape store franchises may be the next big thing.




  1. “Small Business-More Smokers Hoping to Quit Turn to Vaporizers”

10 May 2016