Welcome to WEEK FIVE of the 10 week Marijuana Business Training Course!

This week’s course will cover: SELECTING a LOCATION

Finding appropriate premises for operation is the first step, and then getting written permission from the landlord to have a medical Marijuana business is the second step. The point is not to be disruptive in the community, so take your time and be selective about the location you decide upon. As a business owner you have the right to locate in a place that is convenient for your customers, but at the same time you want to be seen as a positive entity. Intentionally being disruptive and going against the grain does little to attain this goal.

“Distance to Restricted Entities” is a commonly used term for locating businesses that can be perceived as having a negative impact on the community. This language is often found in locating businesses and applications for liquor licenses, tobacco shops, strip clubs, and the like. It is your responsibility as a business owner to educate your local officials and fellow community members that dispensaries actually provide a positive and quality service to residents in need, and that your business is not at all like other organizations requiring an appropriate “distance to restricted entities.” This understanding will come in time to the general population, and no doubt with help from positive impacts through businesses like yours. Examples of civic facilities commonly requiring distance from the dispensary include elementary or secondary schools, playgrounds, recreation center or facilities, child care centers, public parks, public transit centers, libraries or any game arcade (where admission is not restricted to persons age twenty-one or older). The next step would be to locate zoning maps and look for commercial districts as these are commonly separated from restricted entities. This map will also assist you in determining what area your selected location is zoned, and whether or not you have specific ordinances to follow in respect to the zoning code. This process will help you to identify what codes and ordinances govern the location you decide to establish your business.

The easiest way to find a place is to do it in an unincorporated area, but this really should be considered as a last resort. It is ideal to find a location that fits into the community and functions as a positive entity so the dispensary is wanted in its area. Unincorporated areas are really a reservation if the city will not allow your dispensary anywhere else, because the city has no jurisdiction over unincorporated areas. So if there are moratoriums or flat out bans on dispensaries, these will not apply to the unincorporated area.

If you do not have the capitol to purchase a facility to operate from, you will have to deal with renting a commercial space and approaching your prospective landlord will involve some tact and consideration. Quite simply, mentioning anything that has to do with Cannabis, even if it’s Medical Cannabis, has a likelihood of falling on a deaf ear. This is mostly due to the fact that certain quantities of “drugs” on a property can result in Federal seizure of said property. Most savvy landlords know this and do not want to take a chance with their property. Because it is so unlikely, this is one of the biggest myths, and it is up to you to dispel it to the landlord.

That is why you have to find the right landlord, and approach him/her with calm and collected presentation of educational materials about Federal Law and how it applies when State Law dictates different regulations. You must be reassuring to your landlord about how you will run your business, and the fact that the Feds will not bother your establishment if you are adhering to state laws.

Therefore, when you begin your presentation to your prospective landlord is that you are opening up a COMPLETE WELLNESS CENTER. Showing them you are an expert on the law and that you have done your research will put them at ease about the way you will be conducting your business. Informing them that the risk is extremely minimal, almost every city has dispensaries, and that the city and its citizens have
petitioned for your dispensary to operate in the community will greatly put them at ease. Here again, having done your homework and research in writing your business plan will prepare you with materials to present showing that you are prepared to be a responsible business owner.

You also need to tell your landlord about the benefits of having a highly profitable facility as a tenant. After all, your landlord is in business to make money. Dispensaries are cash cows, and you can guarantee your landlord you will be the best tenant they have ever had. You can even make improvements to the facility, with the signing of a guaranteed long term lease (which is highly recommended), to vouch for your presence as a valuable and profitable tenant for landlord.

Delivery Services

Ok, so you’ve decided that your community is just too difficult to locate a storefront place, or perhaps the perfect locations are just too costly in rent or for purchase. Or maybe the location you’ve found is perfect for some of your patients, but you know there is a large population that won’t be able to make the trip to your facility on a regular basis, if even at all. These are common factors that lead some dispensary owners to establish a delivery service. There are, of course, additional caveats to owning a delivery service, many of which revolve around the proper transportation of medicine, but none that are insurmountable.

First and foremost, medical delivery services require emailed or faxed copies of their patients’ medical Marijuana registration cards, and usually only accept electronic payments prior to delivery. The major advantage is, of course, cost savings in retail store frontage and labor required for store staffing. Delivery services usually give themselves a 48 hour window for deliveries, although depending on the patient and the circumstance, exceptions are sometimes made. The value added to the patient, especially those without the capacity to physically come into the store, is the convenience. The major complication comes from patients who want to inspect wares upon delivery, and at worst request an exchange. This scenario can be drastically reduced through establishing certain parameters about sampling, providing the maximum amount of information about a strain through store websites and advertisements, and the use of shop credits.

Once again, it is your onus to ensure that transportation is not expressly prohibited by state law, as some states directly specify that production location and patient pickup location be the same spot. More commonly though, there are no specifications on transportation, and delivery services often operate in the safety of this gray area in the law.

READ THE TWB GUIDE FOR MORE INFO ON – The Zoning Department ; Rental property ; In Marijuana policy, the confusing smoke signals continue ; Networking for Success ; Creating Jobs Study: Medical Marijuana will create 1,500 jobs in Arizona ; Be Aware of the Rules and Rule Changes ; How Much Money Can Be Expected Running a Delivery Service? ; Delivery Services are Helpful

 

YOUR SIXTH ASSIGNMENT

Find your location and establish a contract with your landlord. This step might not happen in a week, and you should NOT rush this process. Your location might just be the single most important decision you make, so take your time and do it right. All of your following tasks for the remainder of this course can be conducted simultaneously to securing the right location. You should be excited that the process is gaining momentum, and the knowledge that finding the perfect location is the first step toward having something tangible to show for all of your hard work. The next section is on storefront operations, and a lot of the work, like market and product research that encompass the final stages of setting up your dispensary, can begin while the storefront is set up.

We are here to help and want to see you succeed! If you have questions you can email The Weed Business directly at info@theweedbusiness.com.

 

Happy Trails!

The Green Ninja, DANKO and the Weed Business Team

The Green Ninja has business experience from owning two companies, has operated The Weed Business since 2009, and follows news providers to stay as current on issues and business laws of Medicinal and Recreational Marijuana use in the United States. DANKO is from a Medical Marijuana state and has many card carrying friends providing first hand insights from patients and caregivers, in addition to researching and writing in-depth articles about the most current issues of the industry. Combined, we have spent hundreds of hours looking into different states’ medical Marijuana laws and the industry to make sure the information included is the most cutting-edge and up to date information there is. The Weed Business has a number of other contributors and a large support network, so if you have a question we can’t answer there’s a good chance we know someone who can.

 

Move On to WEEK SIX