Multi-Unit Franchise Experts

Business Evaluator™: Native Ceuticals

The Native Ceuticals business logo.

Native Ceuticals is a health and wellness business opportunity dedicated to providing non-toxic cannabinoid solutions to address a range of ailments, reflecting its commitment to people-centric values. The brand achieves this by combining traditional natural supplements with modern hemp-based formulations. Located in Mooresville, N.C., just outside Charlotte, the company’s headquarters serves as its Idea Lab, where every product is meticulously formulated and manufactured. 

Native Ceuticals, whether through employing individuals passionate about aiding others, partnering with affiliates who share their mission, or assisting customers in finding effective solutions, prioritizes improving lives.

Specializing in stress relief, sleep issues, skincare, focus enhancement, pain management, and overall wellness, Native Ceuticals is proud to expand its footprint across the nation. Guided by core values of integrity, excellence, simplicity, community engagement, and holistic approaches, the company ensures transparency, pursues excellence, gives back to the community, and advocates for holistic well-being in all aspects of life.

FDA Disclaimer; These products and statements are not evaluated by the Food and Drug Administration and are not intended to diagnose, treat, cure or prevent any disease.

Native Ceuticals
Business at a Glance

Corporate Address

Native Ceuticals
500 South Main St. #119
Mooresville, NC 28115

Year Founded: 2019
Year Started Licensing: 2020

Business Description:

Native Ceuticals presents a health and wellness investment opportunity devoid of revenue sharing, franchise fees, royalties, or costly overheads and specialized equipment. Licensed territory owners are granted greater freedom within this venture to leverage available tools for profit generation. The company is considered a business opportunity and not a traditional franchise.

Market Factors

1

What population does the brand serve? Is the market broad, niche, or somewhere in-between?

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Personal Wellness Market Size

The global CBD oil and CBD consumer health market is projected to reach a value of $123.2 billion by 2027, with a compound annual growth rate (CAGR) of 25.6% throughout the forecast period. This growth is primarily attributed to the rising adoption of cannabidiol (CBD) and CBD-infused products for various medical and wellness purposes. Favorable government regulations, coupled with increasing consumer awareness and demand for CBD due to its perceived health benefits, further propel market expansion. Additionally, CBD products are gaining traction without causing psychoactive effects.

8

We categorize the market size as a large market.

Scale

Small to Large Market Size
2

Is the overall industry growing, that is creating new customers who have never used these services before, or mature where most population segments are already using these types of products and services?

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CBD Industry Trends

The acceptance and legalization of CBD oil and infused products are driving market growth, fueled by increased consumer awareness of CBD’s health benefits. Consumer demand for CBD-infused items like oils, drinks, beauty products, capsules, and pet treats is on the rise, with CBD being consumed through various methods, including ingestion, inhalation, and topical application.

The pharmaceutical industry recognizes the therapeutic potential of CBD and is incorporating it into medications, contributing further to market expansion. Efforts to enhance consumer awareness through informative packaging and marketing activities are expected to fuel growth opportunities for the global CBD market.

To continue to adapt to industry trends, Native Ceuticals introduced custom tinctures through an innovative, patent-pending process, which allows for personalized blends of distillates, isolates, and terpenes. This ensures that individual needs are addressed effectively.

7

We categorize the Industry Trend as high growth trend.

Scale

Low to High Growth Trend
3

What drives the purchase of the product or service? Is it a “need-to-buy” or a “want-to-buy”? How are customers drawn to your business?

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Product and Service Drivers

In a market crowded with over 200,000 hemp and CBD suppliers in the U.S., Native Ceuticals stands out through its Seed to Shelf business model, quality product lines, and commitment to customer experience. The company offers a unique retail approach centered around a holistic wellness concept that incorporates various cannabinoids beyond just CBD. Native Ceuticals’ licensing program aims to rekindle entrepreneurial spirit by providing partners with autonomy and innovative retail strategies, including online sales integration and tailored product offerings.

Ultimately, the Native Ceuticals CBD investment opportunity appeals to those seeking to make a difference in people’s lives by offering alternative wellness solutions while also providing a viable business venture in a rapidly expanding market.

8

We categorize the product and service drivers as mid to high drivers.

Scale

Low to High Drivers
4

Are competitors a major factor in operating your business? If so, is competition sparse or saturated? Will it matter to your business?

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Competitive Climate

Competition in the CBD oil market is fierce as demand surges, driven by growing awareness of its efficacy and purity. This upward trend is expected to attract new entrants in the future, spurred by increasing awareness of CBDs health benefits. CBD consumer health products, offering health benefits without intoxication, are rapidly gaining popularity. Companies are intensifying competition by expanding into new markets, broadening product ranges, and attracting new consumers.

Key players in the CBD oil and CBD consumer health market include:

  • CVSciences, Inc.
  • Medical Marijuana, Inc.
  • CHARLOTTE’S WEB
  • ENDOCA
  • Isodiol
  • Elixinol
  • NuLeaf Naturals, LLC

Native Ceuticals remains a top competitor by consistently expanding its product range to meet evolving consumer preferences. The brand’s offerings span from skincare essentials to pet care solutions, catering to a broad demographic. By remaining informed about industry advancements and employing cutting-edge techniques, Native Ceuticals positions itself as a reputable provider committed to delivering quality, tailored solutions to its clientele.

6

We categorize the competitive climate as mid-high competitive pressure.

Scale

Low to High Competition
5

Are the business’s products or services regulated, or do they require licensing? Will you or your employees require special licensing? If so, is the regulatory climate strict or lax? Will this affect recruiting employees?

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Regulatory Climate

The regulatory landscape for the CBD industry in the U.S. is complex and continually evolving. The legal status of CBD products is primarily governed by federal law, particularly the Agriculture Improvement Act of 2018, commonly known as the Farm Bill. This legislation legalized the cultivation of industrial hemp (cannabis with less than 0.3% THC content) and removed it from the list of controlled substances.

However, despite the federal legalization of hemp-derived CBD, the U.S. Food and Drug Administration (FDA) retains authority over the regulation of CBD products, including dietary supplements, food, beverages, cosmetics, and drugs. As of early 2022, the FDA has only approved one CBD-based drug, Epidiolex, for the treatment of rare forms of epilepsy.

Additionally, individual states have implemented their own regulations regarding the sale, marketing, and labeling of CBD products, which can vary widely. Some states have adopted more permissive regulations, while others have imposed stricter requirements or outright bans on certain types of CBD products.

Overall, the regulatory climate for the CBD industry in the U.S. is characterized by ongoing uncertainty and a patchwork of federal and state regulations. Industry stakeholders continue to advocate for more explicit guidance and rules from federal authorities to ensure consumer safety and facilitate market growth.

5

We categorize the regulatory climate as high regulation.

Scale

Low to High Regulation

Business Model Factors

1

This is one of the most important factors of all. To understand it you have to look beyond what the business physically does, the services performed or products sold and ask how does the franchise make money? Where does the revenue come from? How is it generated? Are financial performance representations made? Coupled with External Factors 1, 2 and 5 – Market Size, Industry Trend and Competitive Climate and the next Internal Factor 2, Franchisee Role – the true nature of the franchise starts to take shape.

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Revenue Model

Native Ceuticals operates on a unique revenue model that embraces a holistic approach to wellness, centered around CBD and its minor cannabinoids such as CBG, CBC, and CBN. This innovative model not only provides a platform for licensees to revive their entrepreneurial spirit but also offers multiple avenues for revenue generation.

Licensees have the flexibility to establish brick-and-mortar stores, cater to B2B clients, including gyms, chiropractic practices, pet boarding, spas, and wholesalers, as well as tap into online sales and subscription-based customers. Emphasizing a retail concept that seamlessly integrates online sales with physical locations and nurtures larger corporate accounts through strategic partnerships, Native Ceuticals stands out by committing to providing cutting-edge and distinctive products.

This model not only offers an investment opportunity in the booming CBD market but also empowers individuals to own businesses that positively impact the wellness journeys of many seeking alternative approaches to well-being.

8

We categorize the Operational Model as Simple.

Scale

Simple to Complex Model
2

How developed are the systems on which you will rely to operate your business?

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Operational Systems

Native Ceuticals’ affiliate model includes an exclusive territory allocation, ensuring affiliates have a defined market to operate within. Additionally, affiliates receive unlimited personalized training, equipping them with the necessary knowledge and skills to succeed. The model provides access to an e-commerce sales platform, facilitating online transactions and expanding market reach.

With an industry-leading product line, affiliates can leverage innovative offerings to attract customers. Furthermore, Native Ceuticals handles product fulfillment and streamlines operations for affiliates. Affiliates also enjoy full access to customizable marketing material, enabling them to tailor their promotional efforts to their target audience.

By combining the support and brand presence of franchising with enhanced revenue streams and entrepreneurial opportunities, Native Ceuticals’ affiliate model offers uncapped sales potential in a fair and inclusive framework.

9

We categorize the Operational Systems as Comprehensive.

Scale

Basic to Comprehensive
3

In this highly diffuse world, creating, managing and projecting a Brand is essential for the health and vitality of a franchise system. How well does the Franchisor manage this? How well positioned is the brand among competitors? Is it differentiated enough? How well would potential customers recognize the brand? How is it projected into new markets? What is your role and obligations in this process? How is the Brand’s digital footprint managed?

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Brand Management

Native Ceuticals prides itself on a comprehensive brand management approach that reflects its core values. Anchored in integrity and transparency, the company ensures that every aspect of its operations upholds these principles.

Moreover, the company places a strong emphasis on community engagement, recognizing its responsibility to give back to the communities it serves. Embracing a holistic perspective, Native Ceuticals believes in addressing wellness from a comprehensive standpoint, integrating physical, mental, and emotional health considerations. As a testament to its dedication to quality and American values, all products are grown and formulated in the U.S., with the company’s headquarters located in Mooresville, N.C.

Native Ceuticals has a Seed to Shelf approach, overseeing every stage of production from cultivation to distribution. With complete control over growing, extracting, and distributing its products, the company is well-equipped to mitigate supply chain challenges. Offering transparency and inviting consumers to visit their farms enhances trust in both the brand and its products as customers gain insight into the origins of Native Ceuticals’ offerings. Franchise Journal Recognized Native Ceuticals as a Top Brand in 2023.

9

We categorize the Brand Management as High Engagement.

Scale

Low to High Engagement
4

What role is the franchisee expected to play in starting, ramping and the ongoing operation of the business?

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Native Ceuticals Licensee Role

The role of a licensee at Native Ceuticals varies depending on their level of involvement, with three distinct categories: Owner Operator, Semi-Absentee, and Absentee.

For owner-operators, their typical day involves hands-on management of day-to-day business operations. This includes tasks such as managing finances, ensuring customer satisfaction, cultivating B2B accounts, providing customer education, and overseeing employee training and management.

Semi-absentee owners have the flexibility to hire a team to handle daily operations, allowing them to focus on networking and securing larger B2B accounts. Their responsibilities include leading, hiring, and training employees, networking, pursuing larger accounts, and managing marketing and community relations efforts.

Absentee ownership is also an option, where licensees are not directly involved in the day-to-day operations. Instead, they rely on technology such as the Square APP to track store performance, sales, and inventory remotely. This allows them to maintain oversight and make informed decisions about their business without being physically present.

7

We categorize the Franchisee Role as Business Manager.

Scale

Service Executor to Business Manager Role
5

What type of location, if any, is needed to deliver the product or service? If real estate is needed, are the requirements flexible or stringent? Is real estate essential to the product or brand experience or required for services to be performed onsite?

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Real Estate Needs

Native Ceuticals provides flexible options for its licensees’ real estate needs, catering to various business models and preferences. While brick-and-mortar locations typically range from 600 to 1,500 square feet, this size requirement is not mandatory, offering licensees the freedom to adapt to their specific circumstances.

In addition to physical storefronts, licensees have the option to operate online stores, tapping into the vast digital marketplace. Moreover, they can explore alternative retail channels such as pop-up shops, farmers’ markets, and B2B sales, expanding their reach and engaging with diverse customer bases. This versatility in real estate options allows Native Ceuticals licensees to tailor their businesses to their unique visions and target demographics, maximizing opportunities for success in the burgeoning CBD market.

9

We categorize the regulatory climate as basic need.

Scale

Basic to Essential Needs

Organization Factors

1

How experienced is the franchisor at being a franchisor?

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Licensing Experience

Native Ceuticals was established in 2019 by co-founders Walter Tribolet and Steve Brown. Since then, the duo has expanded the brand to 80 locations across the country run by passionate licensees.

9

We categorize the Franchising Experience as Extensive.

Scale

Limited to Extensive
2

What is the tenure, background, and commitment of the franchise’s leadership?

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Business Leadership

Co-founder and CEO Walter Tribolet has driven growth through his financial acumen, cost-effective operations, and new business opportunities across consumer products and service organizations. While at Native Ceuticals, he has created everything from e-commerce to retail locations and has overseen marketing, manufacturing, and supply chain, as well as the nationwide rollout of locations.

Co-founder and Chief Product Officer & Head Formulator Steve Brown is a strategist with a history of working in the health and wellness field, specializing in phytocannabinoid product research, development, formulation, and manufacturing. He is also skilled in sales, product-market fit, marketing strategy, sourcing, and logistics management.

9

We categorize the Franchising Leaders as Highly Experienced.

Scale

Limited to Highly Experienced
3

How often and how well does the franchisor engage franchisees? What assistance is provided in starting and operating your business.

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Licensee Engagement

Native Ceuticals seeks individuals embodying an entrepreneurial spirit, demonstrating a desire to reap the rewards of their own efforts. Emphasis is placed on understanding the day-to-day demands of the role rather than prior business experience.

Essential to the ethos of the business owners is the acknowledgment that success stems from within. They are provided with comprehensive tools for success, including unique products, high-profit margins, and opportunities for online sales. However, autonomy is key, as there is no constant guidance provided. Ultimately, the responsibility for running the business rests with the individual. The desired attributes include an entrepreneurial spirit, pioneering mindset, business acumen, self-motivation, and resilience, with a focus on delivering exceptional customer service. Retail experience is optional but beneficial.

8

We categorize the Franchisee Engagement as Highly Engaged.

Scale

Low to Highly Engaged
4

In what kind of financial shape is the franchisor?

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Financial Health*

Native Ceuticals is not a franchise and therefore is not required to file a Franchise Disclosure Document (FDD). The company reports licensees have great growth potential based on a number of factors that vary from licensee to licensee. According to the brand’s data, their average gross sales increased significantly year-over-year during the first three years in business. During the first year, licensees average $227,247.50, $339,660 in the second year, and $413,972.50 in the third. As with all financial claims, you should independently verify with trusted professionals.

FDA Disclaimer; These products and statements are not evaluated by the Food and Drug Administration and are not intended to diagnose, treat, cure or prevent any disease.

FranchiseExpert.com’s review of this opportunity does not constitute endorsement. This site and any information contained herein is for information purposes only. As with any investment, please seek advice from trusted financial and legal professionals.

7

We categorize the Financial Health as Sound.

Scale

Weak to Sound Financial Health

Key Points

Investment Range

$62,000 – $120,000

One-time License Fee

$500

Financial Performance Representation

No

(Item 19)

Average Number of Employees

1

Franchised Units

37

Locations

80

Royalty Fee

0

Passive Ownership

Yes

Veteran Discount

Yes
10% off initial franchise fee

Visa Candidates

Yes

Home Based

Yes

Total Evaluator Score

109

0 – 24

Missing fundamental, internal or external factors

25 – 49

More investigation is needed

50 – 74

Worth exploring further with caution

75 – 99

Add to consideration set

100 – 140

Sound opportunity and likely a great fit

Learn more about Native Ceuticals

Meet with one of our wellness franchise experts for guidance and to answer any questions you have or to request other Native Ceuticals franchise information.