FranDev Players: Kathryn Blackwell, CEO and Co-Founder of The Open Dør

Kathryn Blackwell, CEO and co-founder of The Open Dør, comes from an international franchising background. Prior to entering the cannabis market, Blackwell co-founded international franchisor Kahala Corp, which owned more than 12 brands, among them Cold Stone Creamery, TacoTime, Samurai Sam’s, and others, including more than 3,500 locations operating in 23 countries. 

1851 Franchise spoke with Blackwell to learn more about her story, as well as to learn about some common mistakes she sees franchisors making in today’s industry.

1851 Franchise: Tell me about your brand.

Kathryn Blackwell: Our new brand is The Open Dør, a retail cannabis dispensary franchise available to any license holders where cannabis is legal. Our brand’s goal is to remove the complexity of opening a cannabis dispensary for our operators. The retail world is so competitive and the cannabis industry is so highly regulated, so we wanted to utilize a franchise model to guide operators through the complexities of both. Our COO and co-founder, Chelsea Mulligan, has a ton of experience in the cannabis industry and has opened dispensaries in every state where it is legal. 

The Open Dør brand is focused on the customers and helping them find the ideal cannabis product for their particular needs. The design and decor of the store is modern, welcoming and comfortable. Cannabis is shrouded in a lot of mystery, and one of our biggest goals is helping everyone feel welcome and educated, whether they are seeking a new option for healing or are an experienced user. We want everyone to know that we are the place to come to receive expert knowledge and top-level products. 

1851: How did you get into franchising? 

Blackwell: I have 30 years of experience in the franchising industry. My husband and I owned three Surf City Squeeze juice bars inside a chain of health clubs. We loved doing it, and eventually the health club chain offered us the opportunity to open additional locations, some close by and some across the country. In order to uphold our standards, we realized we needed to create a franchising model to train operators and maintain consistency over all of our procedures. The franchising model really worked for us, and we built that brand to almost 360 locations, both inside health clubs and inside malls. That was the very first brand of what ended up becoming the international franchisor Kahala Corp company. Through some acquisitions and other brand development, we were able to grow and acquire several other brands, including both national brands like Cold Stone Creamery and TacoTime, as well as regional brands. At the time of selling the company in 2013, we had grown to feature 12 brands and over 3,000 locations in 20 countries.  

1851: Are there any keys to consistent franchise growth? 

Blackwell: Consistency is the key word — that is the whole idea behind franchising. Maintaining a level of consistency over service, product offering and branding is the most important factor in creating successful growth for a franchise model. Also, consistency in location is very important — people are expecting to see your brand in a certain environment, so franchisors need to make sure to choose sites that are consistent for their brand and not rush into anything. At The Open Dør, we’ve worked hard to create a very detailed training and oversight program to make sure our business will be consistent across every location.

1851: What are the biggest hurdles to successful franchise growth right now? How did the COVID crisis affect franchise growth opportunities? 

Blackwell: In terms of growth, the biggest hurdle is the fear — prospective franchisees are contemplating putting their life savings into a business, which is a huge risk especially if you don’t know if you’ll be able to bring customers into the door. That fear is definitely hindering growth for a lot of franchise brands. On the more positive side of things, brands are getting creative and figuring out how to offer their product safely, whether it be curbside pickup, contactless payments, or even virtual consultations at jewelry stores. As bad as the year has been on the business side, it has been exciting to see so much creativity in retail franchising. As far as growth for The Open Dør, we feel that our potential for growth hasn’t been affected by COVID-19 as most states have deemed discrepancies an essential business. We have a lot of potential franchisees that are relying on that. 

1851: Are there any common mistakes you see franchisors making when trying to grow? 

Blackwell: One mistake that some brands make when they are trying to grow from being corporate-owned into franchisee-owned is that they don’t take the time to really build out their operational models and training programs. When you only have a few locations, there is a level of assumed knowledge that is shared among the small network of owners. If those best practices and procedures aren’t put down onto paper, brands can lose that level of consistency as they grow. Whether it be record keeping or simple checklists, if brands don’t document these things, it can lead to operators who are just winging it, which is never good. With The Open Dør and all of our experience in operations, we have developed comprehensive manuals and compliance guidelines that will help new operators dive in and grow their business successfully from day one. 

1851: What are your biggest goals/plans for 2021?

Blackwell: We are a new franchise, so we are really looking forward to guiding some of these operators through the process of opening. One of my overall goals with The Open Dør is to build education around the benefits of marijuana use. There is so much research being done in the cannabis world and so many great companies providing this material, and I want to create a platform where franchisees, employees and customers have access to all of that important information.