About Peace Pipes Franchise
Peace Pipes is a smoke shop franchise offering legal cannabis products, clothing, home décor, and various smoking-related accessories under the trade name "Peace Pipes." Franchisees operate retail storefronts typically located in strip centers ranging from 2,000 to 3,000 square feet, serving adult customers primarily over the age of 21.
Day-to-day operations involve managing inventory of CBD and hemp-derived products, electronic cigarettes, branded merchandise, and smoking accessories, while providing knowledgeable customer service in a highly regulated retail environment.
The Peace Pipes franchise model operates as a brick-and-mortar retail business with an exclusive territory of approximately 50,000 people, typically defined as a 3-mile radius around the franchisee's location.
Peace Pipes Franchise Cost & Fees
Minimum Investment
$75K
Average Investment
$288K
Maximum Investment
$500K
| Fee Type | Amount | Notes |
|---|---|---|
| Initial Franchise Fee | $10,000 | One-time payment upon signing |
| Royalty Fee | 5% of Gross Sales of gross sales | Ongoing; paid monthly |
| Marketing/Ad Fund | 1% of Gross Sales | National brand fund |
| Total Investment Range | $75,000 – $500,000 | Includes build-out, inventory, working capital |
The investment range of $75K–$500K reflects variability in build-out costs, store size, lease terms, and market. The combined royalty (5% of Gross Sales) and marketing fee (1% of Gross Sales) are ongoing costs paid as a percentage of gross sales.
Investment Breakdown (Item 7)
| Item | Low | High |
|---|---|---|
| Initial Franchise Fee | $10,000 | $10,000 |
| Rent and Lease Security Deposit | $2,000 | $10,000 |
| Utilities | $500 | $2,000 |
| Leasehold Improvements | $5,000 | $100,000 |
| Market Introduction Program | $2,500 | $10,000 |
| Furniture, Fixtures, and Equipment | $2,000 | $10,000 |
| Computer Systems | $1,000 | $5,000 |
| Insurance | $1,000 | $12,000 |
| Signage | $2,000 | $10,000 |
| Inventory | $25,000 | $243,000 |
| Licenses and Permits | $500 | $10,000 |
| Professional Fees (lawyer, accountant, etc.) | $2,000 | $5,000 |
| Travel and Lodging for Initial Training | $1,500 | $3,000 |
| Additional Funds (first 3 months) | $20,000 | $70,000 |
Additional Fees (Item 6)
| Fee Type | Amount |
|---|---|
| Transfer Fee | $7,500 plus broker fees and out-of-pocket costs |
| Renewal Fee | $2,000 |
| Technology Fee | $85 per month (software subscription) |
| Audit Fee | Cost of audit plus 18% interest per annum on understated amount |
| Local Advertising | Greater of $500 per month or 4% of Gross Sales |
| Market Cooperative Contribution | As determined by co-op, currently none (max 5% of Gross Sales) |
| Replacement/Additional Training Fee | $600 per day |
| Non-compliance Fee | $500 initial, then $250 per week |
| Late Fee | $100 plus 18% annual interest |
| Insufficient Funds Fee | $30 |
| Special Support Fee | $600 per day plus expenses |
| Special Inspection Fee | $600 plus out-of-pocket costs |
| Annual Conference | Up to $1,000 per franchise |
| Liquidated Damages | Royalty and marketing fees for lesser of 2 years or remaining term |
| Reimbursement | Amount spent on behalf plus 10% |
| Non-compliance Cure Costs | Out-of-pocket costs plus 10% |
Training Program (Item 11)
| Detail | Information |
|---|---|
| Total Duration | 20 hours total |
| Classroom Training | 0 hours |
| On-the-Job Training | 20 hours |
| Training Location | Virtual |
| Additional Training | Franchisor may require up to two separate sessions of two days of refresher/update training per year. On-site opening support of 2-5 days is provided. Replacement/additional training available at $600 per day. Annual Convention attendance required. |
Territory Rights (Item 12)
| Detail | Information |
|---|---|
| Territory Type | Exclusive |
| Exclusive Territory | Yes |
| Territory Size | Approximately 50,000 population, typically a 3-mile radius around location |
| Description | Franchisor will not establish company-owned or franchised outlets selling the same or similar goods/services under the same or similar trademarks within the territory. Territory continuation does not depend on sales volume or market penetration. However, franchisor reserves rights to use other channels of distribution (internet, catalog, telemarketing) within the territory and to sell products through channels other than Peace Pipes outlets. |
Renewal, Termination & Transfer (Item 17)
| Detail | Information |
|---|---|
| Initial Term | 10 years |
| Renewal Term | Up to 2 additional 5-year terms |
| Renewal Fee | $2,000 |
| Renewal Conditions | Advance notice 90-180 days before term end; compliance with all agreements; renovate to current standards; sign then-current franchise agreement (may have materially different terms); sign general release; pay renewal fee |
| Transfer Fee | $7,500 plus broker fees and out-of-pocket costs |
| Transfer Conditions | Pay transfer fee; buyer meets franchisor standards; buyer is not a competitor; buyer signs then-current franchise agreement; all payments current and in compliance; buyer completes training; franchisee signs general release; business complies with current system specifications |
| Termination for Cause | Non-payment (10 days to cure); other violations (30 days to cure); non-curable defaults include misrepresentation, false information, bankruptcy, loss of location, violation of law/confidentiality/non-compete/transfer restrictions, slander/libel, refusal to cooperate with inspection, cease operations 5+ days, three defaults in 12 months, cross-termination, felony charge/conviction |
| Non-Compete Period | 2 years |
| Non-Compete Details | For 2 years after termination or expiration, no ownership or employment by a competitor located within 5 miles of former territory or territory of any other Peace Pipes business operating on date of termination |
Operations & Supply (Items 8 & 15)
| Detail | Information |
|---|---|
| Owner-Operator Required | No |
| Participation Details | Franchisee is not required to participate personally in direct operation but it is recommended. A Principal Executive must be designated who owns at least 10% of the business, completes initial training, and attends required meetings. The business must at all times be under on-site supervision of the Principal Executive or a trained general manager. |
| Required Suppliers | All products sold must be purchased from vendors specified or approved by the franchisor. All Peace Pipes trademarked merchandise must be purchased from the franchisor or an approved affiliate. |
| Supply Restrictions | Franchisor has the right to require franchisees to purchase or lease all goods, services, supplies, fixtures, equipment, inventory, computer hardware and software from the franchisor, its designee, or approved suppliers. Required purchases and leases represent 80-90% of establishment costs and 95-100% of ongoing operating purchases. |
| Franchisor Revenue from Suppliers | Revenue derived from required purchases of trademarked/branded items. Prior fiscal year revenue was $0 as the franchisor is new. |
Financing (Item 10)
| Detail | Information |
|---|---|
| Financing Available | No |
| Description | The franchisor does not offer direct or indirect financing and does not guarantee notes, leases, or obligations. |
Peace Pipes Franchise Earnings — Item 19
Peace Pipes does not make an Item 19 financial performance representation in their FDD. This means they do not disclose revenue, profit, or earnings data for franchised locations. Before investing, ask the franchisor directly for franchisee contact information so you can speak with existing owners about their actual financial performance.
Peace Pipes does not include an Item 19 financial performance representation in their FDD. Contact information for current and former franchisees is listed in Item 20 of the FDD.
Peace Pipes Litigation & Risk Flags
Clean Litigation RecordPeace Pipes has no pending litigation actions listed in their FDD. There is also no bankruptcy history disclosed.
Litigation and bankruptcy data is sourced from Items 3 and 4 of the FDD. Always verify current status directly from the most recent FDD.
Peace Pipes System Growth
Total Units
3
Franchised
0
Company-Owned
3
Peace Pipes currently operates 0 franchised locations and 3 company-owned units. Unit count data is sourced from Item 20 of the FDD.
Unit History (Item 20)
| Year | Opened | Closed | Total |
|---|---|---|---|
| 2021 | 0 | 0 | 2 |
| 2022 | 1 | 0 | 3 |
| 2023 | 0 | 0 | 3 |
Transfers: 0 | Closures: 0
State Registrations
Registered in 15 states: CA, HI, IL, IN, MD, MI, MN, NY, ND, OR, RI, SD, VA, WA, WI
Franchisor Financials (Item 21)
Total Assets
$3K
Peace Pipes Franchise — FAQ
The total investment to open a Peace Pipes franchise ranges from $75,000 to $500,000, per their Franchise Disclosure Document. This includes the initial franchise fee of $10,000. The investment covers build-out, inventory, equipment, signage, working capital, and other startup costs.
Peace Pipes charges a royalty fee of 5% of Gross Sales of gross sales, plus a 1% of Gross Sales contribution to the marketing/advertising fund. These fees are paid on an ongoing basis.
You can download the Peace Pipes Franchise Disclosure Document free on this page. The FDD is a public document filed with state franchise registries. Always also request the current FDD directly from Peace Pipes to ensure you have the most up-to-date version.
Peace Pipes does not provide an Item 19 financial performance representation in their FDD, which means they do not disclose franchisee revenue or earnings data. Prospective investors should contact existing franchisees directly (listed in Item 20 of the FDD) to gather real-world financial performance information.
Peace Pipes has been franchising since 2024. The FDD shows an investment range of $75,000-$500,000, a 5% of Gross Sales royalty, and no Item 19 earnings disclosure. There is no pending litigation. Review the full FDD and contact current franchisees listed in Item 20 before making any investment decision.
The franchise fee is $10,000 and the total investment ranges from $75,000 to $500,000 depending on location size and market. Contact the franchisor directly for current net worth and liquid capital requirements, territory availability, and application details.
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Data Source & Disclaimer: This website is for informational purposes only. It is not an offer to sell or buy a franchise. This profile is based on publicly available FDD data sourced from state franchise registry filings. All information is for research purposes only and does not constitute legal, financial, or investment advice. Data may be outdated or contain errors. Always obtain the current FDD directly from Peace Pipes and consult a qualified franchise attorney before making any investment decision. FranchiseOverview.com is operated by Franchising Compliance, LLC and is not affiliated with Peace Pipes or any of its subsidiaries. To report an inaccuracy: info@franchiseoverview.com