open a tobacco shop

There are about 16 million smokers in France. The tobacco market is a lucrative market. If you want to become fond of tobacco then this article is for you. We are going to explain the steps to follow to open your own press tobacconist.

What are the conditions for opening a tobacco shop?

Legal obligation to open a tobacco shop

To open a tobacconist, you must meet the following obligations:

  • to be of age;
  • not be under guardianship or curatorship;
  • have a clean criminal record on slip two;
  • be French, European or Swiss;
  • There has been a favorable opinion from an occupational therapist approved by the ARS (Regional Health Agency).

To be able to open a tobacconist, you will sign a management contract with the state that commits you to three years. Whether or not you must renew this contract every three years.

Qualities Required to Be a Tobacconist

When you open a tobacconist, you become a trader. This is why you must have good interpersonal skills, be helpful and patient. These qualities will help you build customer loyalty.

Opening a tobacco shop requires a lot of organization and rigor. You have to manage your employees, stock and don’t forget to keep yourself informed about the applicable rules.

What is the legal status of opening a tobacconist?

When you open a tobacconist, you have three options:

  • Acquisition of an existing tobacco shop;
  • open a new tobacco shop;
  • Create a tobacconist in an existing business (usually bar or press).

Whichever option you choose, the options for legal status remain the same.

You can opt for a sole proprietorship, i.e. you, the manager, are treated as a natural person. Thus, if you are in debt, no distinction is made between your company assets and your personal assets (except your original residence). Therefore creditors can be reimbursed by your company and, in the event of default, by your assets.

The only company approved to open a tobacco shop is SNC (Societe en Nome Collectif). All associates of this company are considered natural persons. However, an exception is made for managers occupying a public domain, i.e. AOT (Temporary Business Authority). In this case, the partners are considered legal persons.

What are the rules for opening a tobacco shop?

The tobacco market is highly regulated. You must undergo a training course of three to four days at a center approved by the State and Customs Department (refer to the centers listed here). This training will cost you around €800 and will allow you to obtain your operating permit.

Before renewing your three-year management contract, you must complete ongoing training. Training must be validated six months prior to the contract renewal date.

Please note, it is important to know that if you become the owner of a tobacco player, you will not be able to turn it off more than two days a week. These days may or may not be continuous. However, you can set the time as you wish.

During the entire time of your activity, you must be the sole owner of the goodwill associated with your tobacco.

With regard to the price of tobacco, it is determined by JORF (Official Journal of the French Republic). You should respect these prices and buy only from state approved suppliers.

You are also prohibited from selling tobacco to a minor and advertising tobacco.

5 key steps to open your own tobacco shop

1 – Do a market study

Before starting your project, you should analyze what you want to do. The first step is to see if your project is viable. Market research is necessary for this.

Market research involves analyzing the area in which you will develop. You should ask yourself about:

  • consumer trends;
  • your target customers;
  • Demand ;
  • market risk.

All this information will be able to give you a more accurate idea of ​​your project.

2 – Work on your finances

Opening a tobacco shop requires substantial financial investment. You should invest in a security system, buy back a business, and take out insurance. You will also have to pay different taxes, for this we recommend you to hire an accountant or use an online accountant.

Writing a business plan is essential to ensuring the viability of your project with your investors. Don’t hesitate to attach provisional financial documents like Provisional Balance Sheet. This approach will show both your knowledge of the project and your credibility.

3 – Choose a strategic location

Competition in the tobacco market is fierce. So the choice of location is very important. Select a commuting location near shops or means of transportation. Make sure your location is accessible by public transportation or the presence of car parks.

4 – Complete the manufacturing process

To complete the manufacturing process, we advise you to contact government bodies such as the customs department of your area.

You have three options for opening a tobacconist.

1 – You want to acquire existing tobacco:

  • Apply for the National Business Transfer Grant here;
  • Obtain the consent of the tobacco seller who gives you his tobacco;
  • The tobacconist submits your application to the customs department of the region;
  • wait for a favorable opinion of the customs department;
  • start compulsory training;
  • Sign a management contract with the state.

2 – You want to open a new tobacco shop:

  • You should find an offer in the newspapers of legal declarations;
  • Apply by sending your application to the Customs Department;
  • wait for their favorable opinion;
  • complete mandatory training;
  • Sign a management contract with the state.

3 – Finally, you want to open a tobacconist in an already existing business:

  • Check that your business is located in an authorized area;
  • Make a request to DRDDI (Regional Directorate of Customs and Indirect Rights);
  • wait for their favorable opinion;
  • complete mandatory training;
  • Sign a management contract with the state.

In these three cases, you should buy the goodwill associated with the tobacconist. This purchase should be made alone and make you the sole owner of the business.

5 – List your tobacconist on the web

To promote your tobacconist, you can use Google My Business. Indicate the address, opening hours and days. To inspire more confidence, you can also add photos.

We also recommend that you take an interest in online directories. Many users use their smartphones to locate the open and nearest tobacco lit in their location.

What are the other obligations to open a tobacconist?

open a professional account

Don’t forget to open a business bank account. This will allow you to separate your personal banking from your tobacco seller.

Subscribe to Good Insurance

When you open a tobacconist, you must carry liability insurance. You can also take multi-risk professional insurance or guarantee of premises and property.

Equip yourself with the right tools

You have to equip yourself with a lot of equipment. Even if it costs, don’t hesitate to invest in quality equipment. So your equipment will last longer. Don’t hesitate to turn to a professional for advice.

Requirements for opening a tobacco shop are:

If you work with employees, we also recommend looking into payroll software.

questions to ask

Who can open a tobacco shop?

Any adult person who is neither under curatorship nor under guardianship may open a tobacco shop without a court sentence.

Can we open a tobacconist without contribution?

No, you are going to buy the goodwill associated with your tobacconist. Even if you take a loan, you will still be asked for a substantial contribution.

How to finance opening a tobacco shop?

To finance the opening of a tobacconist, you can take a loan from a bank or persuade investors.

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