HomeMy WebLinkAboutC-20-60 Megan's Organic Market RedactedApplicant (Entity) Information
Application Type
Proposed Location
Commercial Cannabis Business
Permit Application
C-20-60
Submitted On: Dec 04, 2020
Applicant
Megan Souza
805-709-0662
Applicant (Entity) Name:
MOM FR LLC
DBA:
Megan's Organic Market
Physical Address:
630 QUINTANA ROAD, SUITE #113
City:
MORRO BAY
State:
CA
Zip Code:
93442
Primary Contact Same as Above?
Yes
Primary Contact Name:
Megan Souza
Primary Contact Title:
President and CEO
Primary Contact Phone:
805-709-0662
Primary Contact Email:HAS ANY INDIVIDUAL IN THIS APPLICATION APPLIED FOR
ANY OTHER CANNABIS PERMIT IN THE CITY OF FRESNO?:
Yes
Select one or more of the following categories. For each
category, indicate whether you are applying for Adult-Use (“A”)
or/and Medicinal (“M”) or both
Both
Please make one selection for permit type. If making multiple
applications, please submit a new application for each permit
type and proposed location.
Permit Type
Retail (Storefront)
Business Formation Documentation:
Limited Liability Company
Property Owner Name:
Nattalia Merzoyan, Carol Cromarty, Mia Cromarty, and Monica
Cromarty
Proposed Location Address:
851 East Fern Avenue
City:
Fresno
State:
CA
Zip Code:
93728
Property Owner Phone:Property Owner Email:
Assessor's Parcel Number (APN):Proposed Location Square Footage:
Supporting Information
Application Certification
451-264-04 4464
List all fictitious business names the applicant is operating under including the address where each business is located:
Some of the owners of MOM FR INC are also owners of MOM SLO LLC which operates under the following fictitious business
name:
- Megan's Organic Market: 280 Higuera Street, San Luis Obispo, CA 93401
- Red Truck Management: 2979 Clark Valley Rd, Los Osos, CA 93402
Has the Applicant or any of its owners been the subject of any
administrative action, including but not limited to suspension,
denial, or revocation of a cannabis business license at any time
during the past three (3) years?
No
Is the Applicant or any of its owners currently involved in an
application process in any other jurisdiction?
Yes
If so, please list and explain:
Some of MOM FR LLC's owners are currently involved in cannabis storefront retail applications in the following jurisdictions:
- Tracy, CA
- Santa Barbara County, CA
- El Centro, CA
I hereby certify, under penalty of perjury, on behalf of myself
and all owners, managers and supervisors identified in this
application that the statements and information furnished in this
application and the attached exhibits present the data and
information required for this initial evaluation to the best of my
ability, and that the facts, statements, and information
presented are true and correct to the best of my knowledge and
belief. I understand that a misrepresentation of fact is cause for
rejection of this application, denial of the permit, or revocation
of a permit issued.
In addition, I understand that the filing of this application grants
the City of Fresno permission to reproduce submitted materials
for distribution to staff, Commission, Board and City Council
Members, and other Agencies to process the application.
Nothing in this consent, however, shall entitle any person to
make use of the intellectual property in plans, exhibits, and
photographs for any purpose unrelated to the City's
consideration of this application.
Furthermore, by submitting this application, I understand and
agree that any business resulting from an approval shall be
maintained and operated in accordance with requirements of
the City of Fresno Municipal Code and State law. Under penalty
of perjury, I hereby declare that the information contained in
within and submitted with the application is true, complete, and
accurate. Iunderstand that a misrepresentation of the facts is
cause for rejection of this application, denial of a permit or
revocation of an issued permit. A denial or revocation on these
grounds shall not be appealable (FMC 9-3319(d)).
Name and Digital Signature
true
Title
President & CEO/Managing Member
Please note: the issuance of a permit will be determined based
on the application you submit and any major changes to your
business or proposal (i.e. ownership, location, etc.) after your
application is submitted may result in a denial.
All applications submitted are considered public documents for
Public Records Act request purposes.
For details about the information required as part of the
application process, see the Application Procedures &
Guidelines, City of Fresno Municipal Code Article 33 and any
additional requirements to complete the application process. All
documents can be found online via this link.
For questions please contact the City Manager’s Office at
559.621.5555.
12/2/2020
COMMERCIAL LEASE AGREEMENT
between
Carol Cromarty, Mia Cromarty, Monica Cromarty and Nattalia Merzoyan,
as Landlord
and
MOM FR LLC,
as Tenant
dated as of
December 2, 2020
DocuSign Envelope ID: 53FC0970-9344-4AE5-9524-9B4A0B09BC81
12/2/2020
TABLE OF CONTENTS
1. Demise ........................................................................................................................................ 5
1.1 Premises ................................................................................................................................ 5
1.4 Quiet Enjoyment ................................................................................................................... 5
2. Term ............................................................................................................................................ 5
2.1 Lease Term ............................................................................................................................ 5
2.3 Rent Commencement Date ................................................................................................... 6
2.4 Lease Year ............................................................................................................................ 6
3. Rent ............................................................................................................................................. 6
3.1 Fixed Rent ............................................................................................................................. 6
3.3 Tax Payments ........................................................................................................................ 6
3.4 Operating Expense Payments ............................................................................................... 7
3.5 Utilities .................................................................................................................................. 7
3.6 Additional Rent ..................................................................................................................... 8
3.7 Late Fee ................................................................................................................................. 8
4. Condition of the Premises ........................................................................................................... 8
4.1 No Representations ............................................................................................................... 8
4.2 Tenant's Work ....................................................................................................................... 8
4.3 Tenant's Signs ....................................................................................................................... 9
5. Use .............................................................................................................................................. 9
5.1 Permitted Use ........................................................................................................................ 9
5.2 Prohibited Uses ................................................................................................................... 10
5.3 Tenant Operation ................................................................................................................ 10
6. Common Areas ......................................................................................................................... 11
6.2 Changes to Common Areas ................................................................................................ 11
7. Repairs and Maintenance .......................................................................................................... 11
7.1 Landlord's Obligations ........................................................................................................ 11
7.2 Tenant's Obligations ........................................................................................................... 12
7.3 HVAC. ................................................................................................................................ 12
7.4 Landlord Remedy ................................................................................................................ 12
8. Security ..................................................................................................................................... 12
8.1 Security Deposit .................................................................................................................. 12
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9. Laws .......................................................................................................................................... 13
9.1 Tenant's Compliance ........................................................................................................... 13
9.2 Tenant's Permits .................................................................................................................. 13
10. Hazardous Substances ............................................................................................................. 14
10.1 Tenant Restrictions ........................................................................................................... 14
10.2 Disposal............................................................................................................................. 14
10.3 Indemnity .......................................................................................................................... 14
11. Insurance ................................................................................................................................. 15
11.1 Tenant's Insurance ............................................................................................................. 15
11.2 Certificates ........................................................................................................................ 15
11.4 Release .............................................................................................................................. 15
11.5 Subtenants ......................................................................................................................... 16
12. Casualty ................................................................................................................................... 16
12.1 Loss by Casualty ............................................................................................................... 16
12.5 Tenant's Repair ................................................................................................................. 16
13. Condemnation ......................................................................................................................... 17
14. Assignment and Subletting ..................................................................................................... 17
15. Default ..................................................................................................................................... 17
15.1 Monetary Default .............................................................................................................. 17
15.3 Non-Monetary Default ...................................................................................................... 17
15.4 Bankruptcy or Insolvency ................................................................................................. 17
15.5 Failure to Open or Operate ............................................................................................... 18
16. Landlord's Remedies ............................................................................................................... 18
16.1 Landlord Cure Right ......................................................................................................... 18
16.2 Termination ....................................................................................................................... 18
16.3 Right to Re-Enter .............................................................................................................. 18
16.5 Forcible Entry and Detainer .............................................................................................. 19
16.6 Cumulative Remedies ....................................................................................................... 19
16.7 Exhaustion of Remedies ................................................................................................... 19
16.8 Attorneys' Fees .................................................................................................................. 19
17. Access ..................................................................................................................................... 19
19. Subordination .......................................................................................................................... 20
19.3 Permitted Exceptions ........................................................................................................ 20
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22. Notices .................................................................................................................................... 20
22.1 Addresses. Notices to Landlord shall be sent to: .............................................................. 20
23. Waiver ..................................................................................................................................... 21
25. Tenant Indemnity .................................................................................................................... 21
26. Waiver of Liability .................................................................................................................. 21
27. Miscellaneous ......................................................................................................................... 22
27.1 No Oral Amendment ......................................................................................................... 22
27.2 Execution .......................................................................................................................... 22
27.3 No Surrender ..................................................................................................................... 22
27.4 Captions ............................................................................................................................ 22
27.5 Severability ....................................................................................................................... 23
27.6 No Presumption ................................................................................................................ 23
27.7 Joint and Several Liability ................................................................................................ 23
27.8 Construction ...................................................................................................................... 23
27.9 Confidentiality .................................................................................................................. 23
27.10 No Recording .................................................................................................................. 23
27.11 Governing Law ............................................................................................................... 23
DocuSign Envelope ID: 53FC0970-9344-4AE5-9524-9B4A0B09BC81
12/2/2020
This Commercial Lease Agreement (this “Lease”), dated as of December 2, 2020 (the “Effective
Date”), by and among Carol Cromarty, Mia Cromarty, Monica Cromarty and Nattalia Merzoyan
(individually and collectively, the “Landlord”), and MOM FR LLC (“Tenant”). Landlord and
Tenant are also sometimes referred to herein, collectively, as the “Parties” or individually as a
“Party.” The Parties agree as follows:
1. Demise
1.1 Premises. In consideration of the payment of the Rent reserved, the mutual
covenants, and each and every act to be performed by Landlord and Tenant under this Lease,
Landlord hereby lets and demises to Tenant and Tenant hereby leases from Landlord for the
Term (as defined below) and upon the terms and conditions set forth in this Lease the
several units at the corner of E. Fern Ave and N. Maroa Ave; 851, 855, 857, and 861 E. Fern
Street; consisting of multiple adjacent commercial spaces totaling approximately 4,464
square feet of retail space (square footage to be re-assessed at or prior to the Retail
Operation Commencement Date (as defined herein)) and a vacant lot to be re-assessed a (the
“Premises”) located at 855 E Fern Ave, Fresno, CA 93728.
1.2 Quiet Enjoyment. Upon payment by Tenant of all Rent and other charges and
the performance of all the covenants, conditions, and provisions on Tenant's part to be
observed and performed under this Lease, Tenant shall have quiet enjoyment of the
Premises for the Term, subject to all terms of this Lease and the Permitted Exceptions (as
defined in Section 18).
2. Term
2.1 Lease Term. The Initial Term of this Lease (“Initial Term” and, as extended in
connection with one or more Renewal Terms, the “Term”) shall begin on the Retail
Operation Commencement Date (as defined below) and will terminate five (5) years from
such date (as the same may be extended in connection with one or more Renewal Terms, the
“Expiration Date”).
2.2 Renewal Term. The Initial Term of this Lease may be extended at the option of
Tenant (each, a “Renewal Option”) for an aggregate of three (3) consecutive Renewal Terms
of five (5) years each (each, a “Renewal Term”). For example, if the Retail Operation
Commencement Date was July 1, 2021, the Initial Term of five (5) years would end on June
30, 2026. Tenant has the option to exercise the first of three subsequent Renewal Options by
notifying the Landlord in writing of its intent to exercise its Renewal Option for an
additional five (5) year term no later than thirty (30) days before the termination of the
Initial Term, and no earlier than one hundred and eighty (180) days before the termination of
the Initial Term (the “Renewal Notice”). Similarly, the Tenant may exercise the second of
three subsequent Renewal Options by delivering a Renewal Notice to Landlord for an
additional five (5) year term no later than thirty (30) days before the termination of the first
five-year Renewal Term, and no earlier than one hundred and eighty (180) days before the
termination of the first 5-year Renewal Term. Tenant may exercise the third of three
subsequent Renewal Options by delivering a Renewal Notice to Landlord for an additional
five-year term no later than thirty (30) days before the termination of the second 5-year
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renewal term, and no earlier than one hundred and eighty (180) days before the termination
of the second 5-year renewal term.
2.3 Retail Operation Commencement Date. Subject to duly receiving all necessary
licenses and permits to operate its business in the City of Fresno, the “Retail Operation
Commencement Date” shall be the earlier of (a) nine months from such date that all licenses
and permits are received (to be confirmed by written notice to Landlord within three (3)
days of receiving such approvals) and (b) the date the Tenant’s retail business opens for
retail sales to customers.
2.4 Lease Year. As used in this Lease, “Lease Year” shall mean: (a) for the initial
Lease Year, the period that commences on the Retail Operation Commencement Date and
that ends on the first anniversary thereof; and (b) thereafter, each Lease Year shall be a
period of twelve calendar months that commences on the anniversary of the Retail Operation
Commencement Date and that ends on the day immediately preceding the next anniversary
of the Retail Operation Commencement Date.
3. Rent. Tenant hereby agrees to pay Fixed Rent and Additional Rent (as such terms are
defined below and collectively referred to herein as “Rent”) for the right of use and occupancy of
the Premises during the Term.
3.1 Fixed Rent.
(a) “Fixed Rent” for the Term shall be determined in accordance with the
following chart:
Initial 5-year Term First 5-year Option
Term
Second 5-year Option
Term
Third 5-year Option
Term
(b) All Fixed Rent shall be payable in monthly installments in advance, on
the first (1st) day of each calendar month included within the term of this Lease. All
Rent payments and other payments to be made by Tenant to Landlord shall be made
payable to Landlord and sent to Landlord at the place to which notices to Landlord are
required to be sent, unless Landlord shall direct otherwise by notice to Tenant. Rent
for any fraction of a month at the commencement or expiration of the Term, or in
which the rate thereof changes pursuant hereto, shall be prorated on a per diem basis.
3.2 Tax Payments.
(a) Commencing on the Retail Operation Commencement Date, and
thereafter during each Lease Year throughout the Term, Tenant shall pay to Landlord,
Real Estate Taxes assessed against the Premises. As used herein, the term “Real Estate
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Taxes” shall mean any form of tax or assessment, general, special, ordinary, or
extraordinary, and any license fee, commercial rental tax, improvement bond or bonds,
levy, or tax (other than inheritance, personal income, or estate taxes) imposed on the
Premises by any governmental authority (each an “Authority”) having the direct or
indirect power to tax, including any city, state, or federal government, or any school,
agricultural, sanitary, fire, street, drainage, business improvement or other
improvement district thereof, levied against any legal or equitable interest of Landlord
in the Premises or any portion thereof, Landlord's right to rent or other income
therefrom, and/or Landlord's business of leasing the Premises.
(b) Tenant shall make payments with respect to Real Estate Taxes monthly
in advance at the same time as the payment of the Fixed Rent. The monthly Real
Estate Taxes payment shall be in an amount reasonably estimated by Landlord. The
initial monthly Real Estate Taxes payment shall be
and Tenant shall be given written notice of any change to
this estimated payment amount. When the actual amount of the Real Estate Taxes for
the Premises for each Lease Year is known, the amount of such equal monthly
advance payments shall be adjusted as required to provide the funds needed to pay the
applicable Real Estate Taxes for that Lease Year. Tenant shall pay any additional
monies due within forty-five (45) days after Landlord notifies Tenant of a deficiency.
3.3 Operating Expense Payments. Commencing on the Retail Operation
Commencement Date, and thereafter during each Lease Year throughout the Term, Tenant
shall pay the Operating Expenses incurred in the operation of the Premises for each Lease
Year. “Operating Expenses” means all costs and expenses necessary to own, operate, and
maintain the Premises and all Common Areas (as defined in Section 6.1), including, but not
limited to, utilities (including, without limitation, electric, gas, water, and sewer), insurance
(including, without limitation, Landlord's insurance costs for fire and casualty, loss of rents,
and liability insurance of the Premises), costs otherwise payable by Landlord pursuant to
any Permitted Exceptions, repairs, replacement costs (due to ordinary or extraordinary wear
and tear or catastrophe), trash and snow/ice removal (including removal from parking areas,
abutting roadways and walkways), landscaping and lawn maintenance, painting, sign
installation and maintenance, repair and replacement of utility systems, depreciation of
machinery and equipment used in such repair and replacement, cost of all personnel to
implement such services. The foregoing list of items is provided for illustrative purposes
only and shall not be deemed a full, complete, or exhaustive list of all possible Operating
Expenses.
3.4 Utilities. Tenant shall directly contract for the provision of, and shall pay
(before delinquency) for, all water, gas, heat, light, power, telephone, telecommunications,
and other utilities and services supplied to the Premises, together with any taxes thereon and
hook-up or connection fees associated therewith. Without limiting the foregoing, all
telecommunications services (voice, video, and data) desired by Tenant shall be obtained at
Tenant's sole cost and risk from providers authorized by Landlord and the appropriate
Authorities to provide such services to the Premises. If any utility services are not separately
metered to Tenant, Tenant shall pay a reasonable proportion to be determined by Landlord,
of all charges jointly metered.
DocuSign Envelope ID: 53FC0970-9344-4AE5-9524-9B4A0B09BC81
3.5 Additional Rent. “Additional Rent” shall mean and be deemed to include all
sums other than Fixed Rent payable by Tenant to Landlord under this Lease, including,
without limitation, payments with respect to Real Estate Taxes, Operating Expenses, late
fees, overtime or excess service charges, damages, and interest and other costs related to
Tenant’s failure to perform any of its obligations under this Lease.
3.6 Late Fee. If Tenant fails to pay when due any installment of Rent, Tenant
covenants and agrees to pay to Landlord a late payment fee in an amount equal to 7.0% of
such installment, provided that no such late payment shall be due if payment of such
installment of Rent is made by Tenant within three (3) days after such payment is due.
Acceptance of any late payment fee shall not constitute a waiver of Tenant's default with
respect to the overdue amount, or prevent Landlord from exercising any of the other rights
and remedies available to Landlord.
4. Condition of the Premises.
4.1 No Representations. Tenant acknowledges that: (a) neither Landlord nor
Landlord's agents or employees have made any representations or warranties as to the
suitability or fitness of the Premises for the conduct of Tenant's business or for any other
purpose; (b) except as expressly provided herein, neither Landlord nor its agents or
employees have agreed to undertake any alterations or construct any improvements to the
Premises; (c) Tenant has been advised to satisfy itself regarding the condition of the
Premises including without limitation the heating, ventilation, and air conditioning
(“HVAC”) systems, electrical and fire sprinkler systems, and any structural or
environmental matters and the present and future suitability of the Premises for Tenant's
intended use; and (d) Tenant has been advised to satisfy itself regarding the Premises'
compliance with the Americans with Disabilities Act and all other applicable requirements,
including all municipal, county, state and federal laws, ordinances, rules and regulations,
orders, permits and zoning, the requirements of any applicable fire insurance underwriter or
rating bureau, and any covenants, restrictions, or other matters of record relating to the
Tenant, the Premises, or the use thereof (collectively, “Laws”). Tenant further
acknowledges, by taking possession of the Premises, that as of the Retail Operation
Commencement Date: (a) Tenant has been given access to the Premises and has made such
investigation as it deems necessary with reference to the matters set forth in this Section, is
satisfied with reference thereto, and assumes all responsibility therefor as the same relate to
Tenant's occupancy of the Premises and/or the terms of this Lease; and (b) neither Landlord
nor any of its agents or employees has made any oral or written representations or warranties
regarding said matters or the condition of the Premises other than as expressly set forth in
this Lease.
4.2 Tenant's Work. Tenant shall accept the Premises in its current condition. All
finish work including installation of trade fixtures and furnishings and items listed in Section
4.3 below, required from time to time to make the Premises suitable for Tenant's occupancy
and operation of its business therein shall be referred to herein as “Tenant's Work.” Before
performing Tenant's Work, Tenant shall deposit with Landlord certificates of insurance as
required by this Lease, and comply with other requirements which may be set forth herein or
reasonably imposed by Landlord. After the Retail Operation Commencement Date, Tenant
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shall obtain Landlord's written approval of Tenant's plans and specifications (including,
without limitation, any alterations, signs, colors, materials, and lighting for the Premises),
Landlord shall use commercially reasonable efforts to approve or reject Tenant's plans and
specifications within ten (10) days of receipt. Landlord's review of Tenant's plans and
specifications are solely for Landlord's convenience, and Landlord's approval of such plans
and specifications shall not constitute evidence of compliance of such plans with any
applicable local or state governmental code or regulation governing the same or the
adequacy thereof for Tenant's proposed use of the Premises.
4.3 Tenant Access Prior to Beginning of Lease Term and Authorization to Begin
Tenant/Leasehold/Lot Improvements. It is the intention of the Parties that upon execution of
this Lease, Tenant shall have access to the Premises and the Lot to manage, oversee and
complete the Tenant’s Work. “Tenant’s Work” shall be leasehold improvements as follows:
(a) Lessor shall allow Tenant to improve the vacant lot at the rear of the
building to create a parking lot, at the Tenant’s expense.
(b) Leasehold improvements to bring the building up to code and such
improvements made are made at the sole discretion of Tenant.
(c) Combining the multiple units into a different configuration.
(d) Creation of a “vault” room; create and reconfigure new rooms/spaces
such as a lobby, a delivery bay.
(e) Facade and interior remodel.
4.4 Tenant's Signs. Before opening its store, Tenant shall install a sign above the
front entrance to the Premises. Tenant's signage shall at all times be consistent with the
signage design criteria for the Premises as the same may be amended from time to time,
including the manner and method of attachment of the signage to the building. Landlord
agrees to allow Tenant to install and maintain the maximum signage permitted under
applicable Laws. All signs must comply with all Laws, including, but not limited to, any
applicable city and county code requirements. Tenant shall be solely responsible for all costs
associated with the manufacture, installation, and maintenance of the signs. At the expiration
of this Lease, Tenant shall remove all signs, at its sole expense, and shall repair any damage
resulting from the installation or removal of the signs.
5. Use.
5.1 Permitted Use. Tenant shall operate its business within the Premises for the
operation of a cannabis retail store that is open to the public under the trade name of
Megan’s Organic Market or Megan’s or such other MOM brand name as mutually agreed to
by Tenant and Landlord (“Tenant's Trade Name”), and for no other business or purpose
without the prior written consent of Landlord (the “Permitted Use”). It is the intention of the
Parties that Tenant take such actions as necessary and reasonable to license, permit, and
entitle the Premises for a cannabis retail business use.
DocuSign Envelope ID: 53FC0970-9344-4AE5-9524-9B4A0B09BC81
5.2 Prohibited Uses.
(a) Tenant shall not use or permit the use of the Premises in a manner:
(i) that violates any Permitted Exception;
(ii) that is unlawful under any Laws of the State of California or the
City of Fresno;
(iii) that creates damage, waste, or a nuisance;
(iv) that emits any objectionable odors, sounds or vibrations, or
allows any pests, insects, or vermin; or
(v) that overloads the floors or impairs the structural soundness of
the Premises.
(b) Tenant shall not conduct, nor permit to be conducted, any auction, fire
sale, bankruptcy sale, going out of business, or similar sale, on the Premises without
Landlord's prior written consent.
Improvements or alterations or other installations made by Tenant to or in the
Premises that are permanently attached to the structure of the Premises shall remain on and
be surrendered with the Premises on expiration of the Term or earlier termination of the
Lease, except that Landlord may elect within thirty (30) days before expiration of the Term,
or within five (5) days after termination of the Lease, to require Tenant at Tenant's sole
expense to remove any alteration, addition, installation or improvements made by Tenant to
the Premises, including, but not limited to Tenant's signs, and repair any damage to the
Premises or Building caused by such removal, which repair shall include the patching and
filling of holes and repair of any structural damage, as specified by Landlord.
5.3 Mechanics’ Liens. Tenant shall pay all costs for construction or work done by
Tenant or caused to be done by Tenant on or to the Premises and shall keep the Premises
free and clear of mechanics’ liens and any other charges or claims filed or made as a result
of labor, services or material furnished to Tenant or the Premises, and Tenant shall hold
harmless and indemnify Landlord against any and all such claims, charges and liens,
including any and all attorney's fees, costs and expenses incurred by Landlord as a result
thereof.
5.4 Tenant Operation. Tenant shall use commercially reasonable efforts to
complete Tenant's Work and open for business to the public for the Permitted Use not later
than the Retail Operation Commencement Date. Thereafter, Tenant covenants and agrees to
operate its business on the Premises diligently and continuously throughout the Term at all
times and on all days that the Premises is open. Tenant will operate its business on the
Premises in a first class and reputable manner. Tenant shall keep the Premises well lighted
and in a safe, neat, and clean condition throughout the Term. Tenant agrees to take such
actions as may be necessary or as Landlord may require to prevent or remedy any nuisance
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to or impact on the improvements related to the Permitted Use. Tenant shall not permit or
suffer the Premises, or the walls or floors thereof, to be endangered by overloading.
6. Common Areas.
6.1 Common Areas Defined. “Common Areas” means all improved and
unimproved areas within the boundaries of the Premises (including any off site employee or
overflow parking areas and any additional land acquired by Landlord) which are made
available from time to time for the general use, convenience, and benefit of Landlord,
tenants, and other persons entitled to occupy any portion of the Premises and/or their
customers, patrons, employees, and invitees. Tenant and all persons having business with
Tenant shall have the right, without charge, to use, in common with all other occupants of
the Premises and all persons having business with such other occupants, and no other
persons, all Common Areas of the Premises, for parking and access in connection with
business in the Premises, and for no other purpose.
6.2 Changes to Common Areas. Landlord reserves the right to any time and from
time to time to make or permit changes to the Premises, including increasing, reducing, or
changing the number, type, side, location, elevation, nature, and use of any of the buildings
or Common Areas, walkways, parking areas, driveways, or access ways. If the Premises
shall be changed as aforesaid, Landlord shall not be subject to any liability to Tenant and
Tenant shall not be entitled to any compensation, or diminution or abatement of rent, not
shall such change, alteration, or diminution be deemed to be a constructive eviction or actual
eviction.
7. Repairs and Maintenance.
7.1 Landlord's Obligations. Subject to the remainder of this Section 7 and all
provisions in this Lease relating to damage, destruction, or condemnation of the Premises
and to Tenant's indemnification of Landlord, Landlord shall maintain, repair and keep in at
least the same condition as of the Retail Operation Commencement Date (ordinary wear and
tear excepted) the roof of any building containing the Premises. If Landlord shall be called
on to make any such repairs occasioned by the negligent act or omission of Tenant, its
employees, agents, servants, customers and other invitees, the entire cost of such repair shall
be borne by Tenant. Except as provided above, it is intended by the Parties hereto that
Landlord have no obligation, in any manner whatsoever, to repair and maintain the
Premises, or the equipment therein, all of which obligations are intended to be that of
Tenant. It is the intention of the Parties that the terms of this Lease govern the respective
obligations of the Parties as to maintenance and repair of the Premises, and they expressly
waive the benefit of any statute now or hereafter in effect to the extent it is inconsistent with
the terms of this Lease. Landlord shall use reasonable efforts to cause any necessary repairs
for the roof to be made promptly; provided, however, that Landlord shall have no liability
whatsoever for any delays in causing such repairs to be made, including, without limitation,
any liability for injury to or loss of Tenant's business, nor shall any delays entitle Tenant to
any abatement of Rent or damages, or be deemed an eviction of Tenant in whole or in part.
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7.2 Tenant's Obligations. Subject to provisions in this Lease relating to damage,
destruction, or condemnation of the Premises, Tenant shall, at Tenant's sole expense, keep
the Premises in good order, condition, and repair (whether or not the need for such repair
occurs as a result of Tenant's use, any prior use, the elements, or the age of such portion of
the Premises), including, but not limited to, all equipment or facilities, such as plumbing,
heating, ventilating, air-conditioning, electrical, lighting facilities, boilers, pressure vessels,
fire protection system, fixtures, interior walls, the interior and exterior finish surface of
exterior walls, ceilings, floors, windows, doors, plate glass, skylights, landscaping,
driveways, parking lots, fences, retaining walls, signs, sidewalks, and parkways located in,
on, or adjacent to the Premises. Tenant, in keeping the Premises in good order, condition,
and repair, shall exercise and perform good maintenance practices. Tenant's obligations shall
include restorations, replacements, or renewals when necessary to keep the Premises and all
improvements thereon or a part thereof in good order, condition, and state of repair. Tenant
shall, during the Term of this Lease, keep the exterior appearance of the Premises in the
same condition as on the Retail Operation Commencement Date, including, when necessary
the exterior repair of the Premises. Tenant is responsible for removal of snow and ice from
the sidewalks adjacent to the Premises.
7.3 HVAC. Tenant shall, at Tenant's sole cost and expense, procure and maintain a
contract, with copies to Landlord, in customary form and substance, for and with a
contractor specializing and experienced in the inspection, maintenance, and service of the
HVAC (as defined in Section 4.1) system for the Premises. However, Landlord reserves the
right, upon on notice to Tenant, to procure and maintain the contract for the HVAC systems,
and if Landlord so elects, Tenant shall reimburse Landlord, on demand, for the cost thereof
as Additional Rent.
7.4 Landlord Remedy. In addition to other rights and remedies available to
Landlord under this Lease, if Tenant fails to perform Tenant's obligations under this Article
7, Landlord may enter on the Premises after seven (7) days’ prior written notice to Tenant
(except in the case of an emergency, in which case no notice shall be required), perform
such obligations on Tenant's behalf, and put the Premises in good order, condition, and
repair, at Tenant's expense and Tenant shall reimburse Landlord, on demand, for the cost
thereof as Additional Rent.
8. Security.
8.1 Security Deposit. The “Security Deposit” shall be the sum of
On such date that all licenses and permits are received
(to be confirmed by written notice to Landlord within three (3) days of receiving such
approvals), Tenant shall deliver the first half of the Security Deposit equal to
and on the Retail Operation
Commencement Date, Tenant shall deliver the second half of the Security Deposit equal to
to Landlord as security for the
full, faithful, and timely performance of each and every provision of this Lease to be
performed by Tenant.
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(a) If Tenant defaults with respect to any provision of this Lease, including
but not limited to the provisions relating to the payment of Rent, Landlord may, in
Landlord's discretion, use, apply, or retain all or any part of the Security Deposit for
the payment of any Rent, or any other sum in default, or for the payment of any other
amount which Landlord may spend or become obligated to spend by reason of
Tenant's default, or to compensate Landlord for any other loss or damage which
Landlord may suffer by reason of Tenant's default, including, without limitation,
prospective damages and damages recoverable pursuant to California Civil Code
Section 1951.2.
(b) If Tenant has fully and faithfully performed and observed all of
Tenant's obligations under this Lease, any remaining balance of the Security Deposit
(over any amount retained for application by Landlord as provided herein) shall be
paid to Tenant no later than ninety (90) days after the last to occur of: (i) the
Expiration Date; (ii) full vacation and surrender of the Premises by Tenant to Landlord
in accordance with this Lease; or (iii) the date, as reasonably determined by Landlord,
that all Additional Rent pursuant to this Lease has been computed by Landlord and
paid by Tenant. In no event shall any payment of Security Deposit balance be
construed as an admission by Landlord that Tenant has performed all of its obligations
under this Lease.
(c) Landlord shall not be required to keep the Security Deposit separate
from its general funds, and Tenant shall not be entitled to interest on the Security
Deposit. The Security Deposit shall not be deemed a limitation on Landlord's damages
or a payment of liquidated damages or a payment of the Rent due for the last month of
the Term.
(d) Landlord may deliver or otherwise credit the Security Deposit to the
purchaser of the Premises if the Premises are sold, and after such time, Landlord will
have no further liability to Tenant with respect to the Security Deposit.
(e) Tenant waives the provisions of California Civil Code Section 1950.7,
or any similar or successor laws now or hereinafter in effect that may restrict
Landlord's use or application of the Security Deposit or provide specific time periods
for return of the Security Deposit. Landlord's return of the Security Deposit or any part
thereof shall not be construed as an admission that Tenant has performed all of its
obligations under this Lease. No trust relationship is created herein between Landlord
and Tenant with respect to the Security Deposit.
9. Laws.
9.1 Tenant's Compliance. Tenant shall, at Tenant's expense, comply with all Laws
(as defined in Section 4.1) relating to: (a) Tenant's occupancy of the Premises; (b) Tenant's
Work; (c) Tenant's property; or (d) the Premises.
9.2 Tenant's Permits. Tenant shall, at its own cost and expense, secure and
maintain throughout the Term, all necessary licenses and permits from such Authorities as
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shall be necessary for, or incidental to, the conduct of its business in the Premises and shall
comply with all Laws relating to the operation of its business. Landlord does not covenant,
warrant, or make any representation that any particular license or permit that may be
required in connection with the operation of Tenant's business will be granted, or if granted,
will be continued in effect or renewed, and any failure to obtain, maintain, or renew such
license or permit, or its revocation after issuance, shall not affect Tenant's obligations under
this Lease.
9.3 Accessibility. Without limiting the generality of Sections 9.1 and 9.2:
(a) To Landlord's actual knowledge, the Premises have not undergone
inspection by a Certified Access Specialist (CASp).
(b) Tenant acknowledges that: (i) Tenant will be responsible for any
accommodations or alterations to the Premises required by Law during the Term to
accommodate disabled employees and customers of Tenant, including, without
limitation, the requirements under the Americans with Disabilities Act and other
applicable disabilities Laws; and (ii) Landlord will be responsible for any
accommodations or alterations to the Common Areas required by the Americans with
Disabilities Act and other applicable disabilities Laws during the Term, any costs of
which will be included in Operating Expenses.
10. Hazardous Substances.
10.1 Tenant Restrictions. Tenant shall not, and shall not permit any of its
subtenants, employees, contractors, agents, or invitees, to introduce into the Premises or the
Premises, use in the Premises or the Premises or cause to be released from the Premises or
the Premises any Hazardous Substances. Notwithstanding the preceding sentence, Tenant
may use cleaning and office products in accordance with their customary use, provided that
Tenant complies with all applicable Laws in connection therewith, and further provided that
in no event may Tenant release or discharge such cleaning and/or office products into the
plumbing, drainage, or sewer system in excessive amounts. If Tenant breaches its
obligations hereunder, Tenant, at Tenant's expense, shall immediately take all remedial
action necessary to clean up any release, spill or discharge of Hazardous Substances.
"Hazardous Substances" mean any flammable or otherwise hazardous material, any
explosive and/or radioactive material, hazardous waste, hazardous or toxic substance or
related material, asbestos and any material containing asbestos, petroleum and any
petroleum derivative, pollutants, contaminants, and any other substance or material which is
defined as, determined to be, or identified as, a hazardous or toxic material or substance
under any applicable Laws.
10.2 Disposal. If Tenant shall be obligated to remediate any Hazardous Substances,
it shall remove and dispose of any such Hazardous Substances in compliance with all
applicable Laws. Tenant's remediation plan shall be subject to Landlord's approval and
Tenant shall keep Landlord fully apprised of the progress of Tenant's remediation efforts.
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10.3 Indemnity. Tenant shall indemnify, defend, and hold harmless Landlord, its
managing agent, and their respective members, shareholders, partners, directors, managers,
officers, employees, and agents, from and against all liabilities, damages, losses, fines, costs,
and expenses (including reasonable attorneys' fees and disbursements) resulting or arising
from Tenant's possession, use or misuse of the Premises, except with respect to Landlord's
gross negligence.
11. Insurance.
11.1 Tenant's Insurance. Tenant, at Tenant's expense, shall at all times during the
Term and at all times when Tenant is in possession of the Premises maintain the following:
(a) commercial general liability insurance (or successor form of insurance
designated by Landlord) in respect of the Premises, on an occurrence basis, with a
combined single limit (annually and per occurrence and location) of at least
naming as additional insureds Landlord and any
other person designated by Landlord. Tenant's liability insurance policy shall include
contractual liability, fire, and legal liability coverage. Landlord shall have the right at
any time and from time to time, but not more frequently than once every year, to
require Tenant to increase the amount of the commercial general liability insurance
required to be maintained by Tenant under this Lease provided the amount shall not
exceed the amount then generally required of tenants entering into leases for similar
permitted uses in similar buildings in the general vicinity of the Premises;
(b) property insurance in an amount equal to one hundred (100%) percent
of full replacement value, covering Tenant's Work (including improvements and
betterments, whether or not the improvements and betterments are restored), Tenant's
property and the property of third parties located in the Premises, against fire and other
risks, including business interruption insurance covering a period of twelve (12)
months;
(c) workers' compensation and employer's liability insurance providing
statutory benefits for Tenant's employees at the Premises; and
(d) such other insurance as Landlord shall agree in writing with Tenant.
11.2 Certificates. Tenant shall deliver to Landlord and each additional insured
certificates in form reasonably acceptable to Landlord evidencing the insurance required by
this Lease to be maintained by Tenant before the Retail Operation Commencement Date
(and with respect to any insurance required under Section 4, before the commencement of
any Tenant's Work), and on request, a copy of each insurance policy. All required insurance
shall be primary and non-contributory (as shown on endorsement), issued by companies
satisfactory to Landlord, and contain a provision whereby it cannot be canceled unless
Landlord and any additional insureds are given at least ten (10) days’ prior written notice of
the cancellation. Tenant may carry any required insurance under a blanket policy if that
policy complies with the requirements of this Lease and provides that Tenant's insurance for
the Premises is on a "per location basis."
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11.3 Release. Provided its right of full recovery under its insurance policy is not
adversely affected, Landlord and Tenant each hereby releases the other (and the other's
agents and employees) with respect to any claim (including a claim for negligence) it may
have against the other for damage or loss covered by its property insurance (including
business interruption and loss of rent). Landlord and Tenant shall, to the extent obtainable,
each procure a clause in, or endorsement on, any property insurance carried by it, under
which the insurance company waives its right of subrogation against the other party to this
Lease and its agents and employees or consents to a waiver of the right of recovery against
the other party to this Lease and its agents and employees. If an additional premium is
required for the waiver or consent, the other party shall be advised of that amount and may,
but is not obligated to, pay the same. If that party elects not to pay the additional premium,
the waiver or consent shall not be required in favor of that party.
11.4 Subtenants. Any subtenant or other occupant of the Premises shall be obligated
to comply with the provisions of this Article.
12. Casualty.
12.1 Loss by Casualty. If the Premises are damaged by fire or other casualty (any of
such causes being referred to herein as a “Casualty”), but the Premises shall not be thereby
rendered wholly or partially untenantable, the damage shall be repaired, subject to the
availability of and there shall be no abatement of Rent. If, as a result of Casualty, the
Premises shall be rendered wholly or partially untenantable, then, subject to the provisions
of Section 12.2, such damage shall be repaired and a just portion of the Rent shall be abated
until the Premises are restored; provided, however, if such Casualty was caused by the
negligence of Tenant, its agent or those acting under it, then there shall be no such
abatement. Notwithstanding any other provision of this Lease, Landlord shall not be
required to undertake any repair to the Premises under such circumstances beyond that
described in this Lease. In the event of such Casualty, Landlord shall not be liable for
interruption to Tenant’s business or for damage to or repair of Tenant’s personal property or
fixtures or for any damage to any leasehold improvements installed in the Premises by or on
behalf of Tenant, the repair of which shall be the obligation of Tenant. Tenant waives the
provisions of Civil Code sections 1932 (2) and 1933 (4).
12.2 Option to Terminate Lease. If, as a result of Casualty, (a) the Premises are
rendered untenantable, or (b) the Premises are damaged as a result of any cause which is not
covered by Landlord’s insurance, or (c) the Premises are damaged or destroyed in whole or
in part during the last year of the Term, or (d) if fifty (50%) or more of the Premises are
damaged, Landlord may elect to terminate this Lease by giving written notice to Tenant with
one hundred twenty (120) days after the occurrence of such event. If such notice of
termination is given, the Lease shall terminate as of the date of such notice, and the Rent and
other amounts due Landlord shall be adjusted, provided that Tenant shall remain responsible
to repair the Premises in accordance with the terms and conditions of this section. In
satisfaction of such obligation, Tenant may assign and transfer to Landlord any and all
claims and rights to insurance proceeds or other rights arising as a result of such Casualty. If
the Lease is not terminated as provided in this Section, then this Lease shall remain in full
force and effect, and the parties waive any provisions of any law to the contrary.
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12.3 Tenant's Repair. If Landlord is obligated or elects to repair any damage to the
Premises, Tenant shall promptly replace or fully repair all inventory, goods, exterior signs,
trade fixtures, equipment, display cases, and Tenant's Work. Tenant shall continue the
operation of its business in the Premises during the Repair Period to the extent reasonably
practical from the standpoint of good business.
13. Condemnation. If the Premises or any portion thereof are taken under the power of
eminent domain or sold under the threat of the exercise of said power (collectively
“Condemnation”) this Lease shall terminate as to the part taken as of the date the condemning
Authority takes title or possession, whichever first occurs. Landlord may terminate this Lease as
to the portion of the Premises not taken if Landlord determines, in its discretion, that the taking
renders operation of the Premises uneconomical. If more than fifty percent (50%) of any portion
of the Premises occupied by a building is taken by Condemnation, Tenant may, at Tenant's
option, to be exercised in writing within ten (10) days after the condemning Authority shall have
taken possession, terminate this Lease as of the date the condemning Authority takes such
possession. If neither Landlord nor Tenant terminates this Lease in accordance with the
foregoing, this Lease shall remain in full force and effect as to the portion of the Premises
remaining, except that the Fixed Rent shall be reduced in proportion to the reduction in area of
the Premises caused by such Condemnation.
14. Assignment and Subletting. Tenant shall not assign, mortgage, or otherwise transfer or
encumber all or any part of Tenant's interest in this Lease or in the Premises (collectively, an
“Assignment”) or sublet all or any part of the Premises or otherwise permit all or any part of the
Premises to be occupied by any other Person, (collectively, a “Sublet”) without Landlord's prior
written consent which consent shall not be unreasonably withheld or delayed. Any Assignment
or Sublease shall not release Tenant from its obligations hereunder. Notwithstanding anything
herein to the contrary, in lieu of consenting to any proposed Assignment or Sublease, Landlord
may, by written notice to Tenant, elect to terminate this Lease and recapture the Premises as of a
date specified in said written notice (the “Recapture Date”), and enter into a direct lease with the
proposed assignee or subtenant, in which event this Lease and the Term shall come to an end on
the Recapture Date with the same force and effect as if the Term were, by the terms hereof, fixed
to expire on such date.
15. Default. Each of the following is a material default (a “Default”) by Tenant under this
Lease:
15.1 Monetary Default. Tenant fails to pay when due any Rent and the failure
continues for ten (10) days following Landlord's notice (which notice shall also be
considered any demand required by any Laws). If, however, Landlord gives such a notice of
failure to pay Rent two (2) times in any twelve (12) month period, any additional failure to
pay any Rent when due within that twelve (12) month period shall be considered a Default,
without the requirement of any notice by Landlord.
15.2 Non-Monetary Default. Tenant fails to comply with any other term of this
Lease and the failure continues for twenty (20) days following Landlord's notice. If,
however, compliance cannot, with diligence, reasonably be fully accomplished within that
twenty (20) day period, Tenant shall have an additional period not to exceed three (3) days
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to fully comply, provided Tenant notifies Landlord of its intention to comply (and
specifying in reasonable detail the steps to be taken) and commences compliance within that
three (3) day period and thereafter pursues compliance to completion with diligence.
15.3 Bankruptcy or Insolvency. A third party institutes against Tenant any legal
action seeking any relief from its debts under any applicable bankruptcy or insolvency Laws
which is not dismissed within ninety (90) days, or Tenant or Guarantor, if any, institutes any
legal action seeking such relief, and/or a receiver, trustee, custodian or other similar official
is appointed for Tenant or Guarantor, if any, or for all or a substantial portion of its assets, or
Tenant or Guarantor, if any, commits any other act indicating insolvency such as making an
assignment for the benefit of its creditors.
15.4 Failure to Open or Operate. Except as otherwise expressly permitted under
this Lease, Tenant fails to open for business and continuously operate its business within the
Premises, or vacates or abandons the Premises before the Expiration Date.
16. Landlord's Remedies. Upon the occurrence of any Default, Landlord shall have the
right, at Landlord's election, then or at any time thereafter, to exercise any one or more of the
following remedies to the fullest extent allowed by applicable law:
16.1 Landlord Cure Right. Landlord may, without releasing Tenant from any
obligations under this Lease, make any payment or take any action as Landlord may deem
necessary or desirable to cure any such Default in such manner and to such extent as
Landlord may deem necessary or desirable, and Landlord may do so without demand on, or
written notice to, Tenant and without giving Tenant an opportunity to cure such Default.
Tenant covenants and agrees to pay to Landlord, within thirty (30) days after demand, all
advances, costs, and expenses of Landlord in connection with the making of any such
payment or the taking of any such action, including reasonable attorneys' fees, from the date
of payment of any such advances, costs, and expenses by Landlord.
16.2 Termination. In the event of the failure of the conditions or the breach of any
covenant set forth in this Lease, Landlord may terminate this Lease, effective at such time as
may be specified by written notice to Tenant, and recover possession of the Premises from
Tenant. Tenant shall remain liable to Landlord for damages in an amount equal to the Rent
and sums which would have been owing by Tenant hereunder for the balance of the Term
had this Lease not been terminated, less the net proceeds, if any, of any reletting of the
Premises by Landlord after such termination, after deducting all Landlord's expenses in
connection with such recovery of possession or reletting. Landlord shall be entitled to
collect and receive such damages from Tenant on the days on which the Rent and amounts
would have been payable if this Lease had not been terminated. At the termination of this
Lease, the Premises will be left in a condition such that it can be leased and reasonably used
by ordinary commercial uses without any undue, unreasonable, or excessively costly
modifications to Landlord.
16.3 Right to Re-Enter. Landlord may re-enter and take possession of the Premises
or any part thereof, without demand or Notice, and repossess the same and expel Tenant and
any party claiming by, under or through Tenant, and remove the effects of both, and without
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prejudice to any remedies for arrears of Rent or right to bring any proceeding for breach of
covenants or conditions. No such re-entry or taking possession of the Premises by Landlord
shall be construed as an election by Landlord to terminate this Lease unless a written notice
of such intention is given to Tenant. No notice from Landlord hereunder or under a forcible
entry and detainer statute or similar law shall constitute an election by Landlord to terminate
this Lease unless such notice specifically so states. After recovering possession of the
Premises, Landlord may, from time to time, but shall not be obligated to, relet the Premises,
or any part thereof, for the account of Tenant, for such term or terms and on such conditions
and upon such other terms as Landlord, in its discretion, may determine. Landlord may
make such repairs, alterations, or improvements as Landlord may consider appropriate to
accomplish such reletting, and Tenant shall reimburse Landlord upon demand for all costs
and expenses, including attorneys’ fees, which Landlord may incur in connection with such
reletting. Landlord may collect and receive the rents for such reletting but Landlord shall in
no way be responsible or liable for any failure to relet the Premises, or any part thereof, or
for any failure to collect any rent due upon such reletting. Notwithstanding Landlord's
recovery of possession of the Premises, Tenant shall continue to pay on the dates herein
specified the Rent and other amounts which would be payable hereunder if such
repossession had not occurred, less a credit for the net amounts, if any, actually received by
Landlord through any reletting of the Premises.
16.4 Cumulative Remedies. No remedy or election hereunder shall be deemed
exclusive but shall, wherever possible, be cumulative with all other remedies at law or in
equity.
16.5 Exhaustion of Remedies. Upon any Default, Landlord may proceed directly
against Tenant or any other party guaranteeing or responsible for the performance or
Tenant's obligations under this Lease, including any assignee or subtenant, without first
exhausting Landlord's remedies against any other person or entity responsible therefor to
Landlord, or any security held by Landlord.
16.6 Attorneys’ Fees. If Landlord brings an action or proceeding involving the
Premises to enforce the Terms hereof or to declare rights hereunder, then Landlord shall be
entitled to reasonable attorneys’ fees, if it is the Prevailing Party (as hereafter defined) in
any such proceeding, action, or appeal thereon. Such fees may be awarded in the same suit
or recovered in a separate suit, whether or not such action or proceeding is pursued to
decision or judgment. The term, “Prevailing Party” shall include, without limitation, a Party
who substantially obtains or defeats the relief sought, as the case may be, whether by
compromise, settlement, judgment, or the abandonment by the other Party of its claim or
defense. The attorneys’ fees award shall not be computed in accordance with any court fee
schedule, but shall be such as to fully reimburse all attorneys’ fees reasonably incurred. In
addition, Landlord shall be entitled to attorneys’ fees, costs, and expenses incurred in the
preparation and service of notices of default and consultations in connection therewith,
whether or not a legal action is subsequently commenced in connection with such default.
17. Access. Landlord and Landlord's employees, agents, contractors, and other authorized
representatives shall have the right to enter the Premises at any time, in the case of an
emergency, and otherwise at reasonable times upon not less than 24 hours’ prior notice for any
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purpose of inspections, showing the same to prospective purchasers, lenders, or tenants, or
making such alterations, repairs, improvements, or additions to the Premises as Landlord may
deem necessary, or performing any obligation of Landlord under this Lease. In an emergency,
Landlord or Landlord’s employees, agents, contractors, and other authorized representatives
shall have the right to enter the Premises at any time, without prior notice.
18. Permitted Exceptions. This Lease and all of Tenant's rights hereunder are subject to all
the matters, restrictions, and encumbrances of record (whether now existing or hereafter arising)
and all restrictions in this Lease (collectively, the “Permitted Exceptions”). Landlord reserves to
itself the right, from time to time, to grant, without the consent or joinder of Tenant, such
easements, rights, and dedications as Landlord deems necessary, and to cause the recordation of
parcel maps and restrictions, so long as such easements, rights, dedications, maps, and
restrictions do not unreasonably interfere with the use or occupancy of the Premises by Tenant.
When granted or recorded, such easements, rights, dedications, maps, and restrictions will be
additional Permitted Exceptions. Tenant agrees to sign any documents reasonably requested by
Landlord to effectuate any such easements, rights, dedications, maps, or restrictions. Tenant shall
have no right to seek damages or to cancel or terminate this Lease, and the rights and obligations
of Landlord and Tenant hereunder otherwise shall not be affected, because of any rights, changes
or other matters allowed or set forth in the Permitted Exceptions.
19. Notices. All notices required or permitted by this Lease shall be in writing, may be
delivered by registered mail and electronically, and shall be deemed sufficiently given if served
in a manner specified in this Section.
19.1 Addresses. Notices to Landlord shall be sent to:
Primary Mailing Address for Landlord – [to be provided prior to the Retail Operation
Commencement Date]
Carol Cromarty
Mia Cromarty
Monica Cromarty
Nattalia Merzoyan
Notices to Tenant shall be sent to:
MOM FR LLC
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Such addresses may be changed from time to time by any party by providing notice as set forth
above. Notices mailed in accordance with the above provisions shall be deemed received on the
third day after posting.
20. Waiver. No waiver by Landlord of the violation of any term, covenant, or condition
hereof by Tenant, shall be deemed a waiver of any other term, covenant, or condition hereof, or
of any subsequent violation by Tenant of the same or of any other term, covenant, or condition
hereof. Landlord's consent to, or approval of, any act shall not be deemed to render unnecessary
the obtaining of Landlord's consent to, or approval of, any subsequent or similar act by Tenant,
or be construed as the basis of an estoppel to enforce the provision or provisions of this Lease
requiring such consent. The acceptance of Rent by Landlord shall not be a waiver of any such
violation or any Default by Tenant. Any payment by Tenant may be accepted by Landlord on
account of moneys or damages due Landlord, notwithstanding any qualifying statements or
conditions made by Tenant in connection therewith, which such statements and/or conditions
shall be of no force or effect whatsoever unless specifically agreed to in writing by Landlord at
or before the time of deposit of such payment. No payment by Tenant, nor receipt by Landlord,
of a lesser amount than the Rent herein stipulated shall be deemed to be other than on an account
of the earliest stipulated Rent, nor shall any endorsement or statement on any check or any letter
accompanying any check or payment as Rent be deemed an accord and satisfaction, and
Landlord shall accept such check for payment without prejudice to Landlord's right to recover
the balance of such Rent or pursue any other remedy available to Landlord.
21. Indemnity. Tenant shall indemnify, protect, defend, and hold harmless the Premises,
Landlord and its members, managers, employees, agents, contractors and partners from and
against any and all claims, actions, demands, suits, proceedings, orders, losses (including loss of
rents), damages, liens, judgments, penalties, attorneys' and consultants' fees, expenses, and/or
liabilities (collectively, “Claims”) arising out of, involving, or in connection with: (a) the use
and/or occupancy of the Premises by Tenant; (b) the conduct of Tenant's business on the
Premises, including in the event of any actual or threatened Federal enforcement of cannabis
policy in conflict with California law which directly affects the Premises; provided, if any
Federal enforcement proceedings are initiated or threatened to be initiated, in connection with
Tenant’s use of the Premises, Tenant shall take reasonable steps to terminate any non-
conforming use or activity in connection with the Premises and prevent any further Claims
against the Premises or Landlord; (c) any act, omission, fault, or neglect on or about the Premises
of Tenant, its agents, employees, contractors, subtenants, licensees, visitors, or invitees; or (d)
any violation of any terms hereof by Tenant, except to the extent such Claim is the result of
Landlord's gross negligence or willful misconduct. If any action or proceeding is brought against
Landlord by reason of any of the foregoing matters, Tenant shall upon notice defend the same at
Tenant's expense by counsel reasonably satisfactory to Landlord and Landlord shall reasonably
cooperate with Tenant in such defense. Landlord need not have first paid any such claim in order
DocuSign Envelope ID: 53FC0970-9344-4AE5-9524-9B4A0B09BC81
to be defended or indemnified. This Section shall survive the expiration or sooner termination of
this Lease.
22. Waiver of Liability. Landlord and Landlord's agents and employees shall not be liable
for, and Tenant waives all claims for, damage to property sustained by Tenant, employees,
agents or contractors, or any other person claiming through Tenant, resulting from any accident
in or upon the Premises or the Premises of which they shall be a part, including, but not limited
to, claims for damage resulting from: (a) any equipment or appurtenances becoming out of
repair; (b) Landlord's failure to keep the Premises or the Premises in repair; (c) injury done or
occasioned by wind, water, or other act of God; (d) any defect in, or failure of, plumbing,
heating, or air-conditioning equipment, electric wiring, or installation thereof, gas, water, and
steam pipes, stair, porches, railings, or walks; (e) broken glass; (f) the backing-up of any sewer
pipe or downspout; (g) the bursting, leaking, or running of any tank, tub, sink, sprinkler system,
water closet, water pipe, drain, or any other pipe or tank in, upon, or about the Premises or
Premises; (h) the escape of steam or hot water; (i) water, snow, or ice being upon, or coming
through the roof, skylights, doors, stairs, walks, or any other place upon, or near the Premises, or
the Premises, or otherwise; (j) the falling of any fixtures, plaster, or stucco; (k) fire or other
casualty; (l) any act, omission, or negligence of other tenants, or of other persons or occupants of
the Premises, or of adjoining or contiguous buildings, or of adjacent or contiguous property.
Landlord shall not be liable to Tenant for any damage by or from any act or negligence of any
tenant or other occupant of the Premises or the Premises, or by any owner or occupant of
adjoining or contiguous property. Landlord shall not be liable for any injury or damage to person
or property resulting in whole or in part from the criminal activities of others. To the extent not
covered by normal fire and extended coverage insurance, Tenant agrees to pay for all damage to
the Premises and the Premises caused by Tenant, or any of its employees, agents, or contractors.
23. Miscellaneous
23.1 Amendments. This Lease may not be changed or terminated, in whole or in
part, except in a writing signed by Landlord and Tenant. Notwithstanding the foregoing, this
Lease may be amended at or prior to the Retail Operation Commencement Date without
Tenant’s consent in order to:
(a) re-assess the square footage of the Premises;
(b) provide for the organizational structure of the Landlord into a limited
liability company or such other business entity that will be the successor Landlord and
be substituted for the Landlord under this Lease; and
(c) such other actions as may be agreed to in writing by Landlord and
Tenant.
23.2 Execution. Notwithstanding any provision of this Lease, or any Laws, to the
contrary, or the execution of this Lease by Tenant, this Lease shall not bind or benefit
Landlord or Tenant, unless and until this Lease is signed and delivered by both Landlord and
Tenant.
DocuSign Envelope ID: 53FC0970-9344-4AE5-9524-9B4A0B09BC81
23.3 No Surrender. No act or omission of Landlord or Tenant, or their respective
employees, agents or contractors, including the delivery or acceptance of keys, shall be
deemed an acceptance of a surrender of the Premises, and no agreement to accept such
surrender shall be valid unless it is in a writing signed by Landlord.
23.4 Captions. The captions in this Lease are for reference only and do not define
the scope of this Lease or the intent of any term. All Section references in this Lease shall,
unless the context otherwise specifically requires, be deemed references to the Sections of
this Lease.
23.5 Severability. If any provision of this Lease, or the application thereof to any
person or circumstance, is invalid or unenforceable, then in each such event the remainder of
this Lease or the application of such provision to any other person or any other circumstance
(other than those as to which it is invalid or unenforceable) shall not be affected, and each
provision hereof shall remain valid and enforceable to the fullest extent permitted by all
applicable Laws.
23.6 No Presumption. There shall be no presumption against Landlord because
Landlord drafted this Lease or for any other reason.
23.7 Joint and Several Liability. If Tenant is comprised of two or more persons, the
liability of those persons under this Lease shall be joint and several.
23.8 Construction. Wherever appropriate in this Lease, words of any gender used in
this Lease shall be construed to include any other gender, and words in the singular shall
include the plural and vice versa, unless the context otherwise requires.
23.9 Confidentiality. Each party agrees to keep the terms of this Lease confidential
and shall not disclose same to any other person not a party hereto without the prior written
consent of the other, provided that either party may disclose the terms hereof to such
accountants, attorneys, managing employees, and others in privity with any such party to the
extent reasonably necessary for either party's business purposes.
23.10 No Recording. Tenant shall not record this Lease or any memorandum of this
Lease.
23.11 Governing Law. This Lease shall be governed by, and construed in accordance
with, the laws of the State of California.
DocuSign Envelope ID: 53FC0970-9344-4AE5-9524-9B4A0B09BC81
12/2/2020
IN WITNESS WHEREOF, Landlord and Tenant have executed this Lease as of the
Effective Date.
Landlord:
Carol Cromarty
______________________________
Name: Carol Cromarty
Landlord:
Mia Cromarty
______________________________
Name: Mia Cromarty
Landlord:
Monica Cromarty
______________________________
Name: Monica Cromarty
Landlord:
Nattalia Merzoyan
______________________________
Name: Nattalia Merzoyan
Tenant:
MOM FR LLC,
a California limited liability company
By:______________________________
Name: Megan Souza
Title:
DocuSign Envelope ID: 53FC0970-9344-4AE5-9524-9B4A0B09BC81
12/3/2020
12/2/2020
Managing Member
12/3/2020
12/3/2020
12/3/2020
INDEMNIFICATION AND HOLD HARMLESS AGREEMENT
FOR COMMERCIAL CANNABIS BUSINESS PERMIT APPLICATION
To the fullest extent permitted by law, the City of Fresno (City) shall not assume any liability whatsoever with respect to
having issued a commercial cannabis business permit pursuant to Fresno Municipal Code Section. 9-3333 or otherwise
approving the operation of any commercial cannabis business or cannabis retail business.
In consideration for the submittal of an application for a commercial cannabis business permit application and/or issuance
of a cannabis business permit, and to the furthest extent allowed by law, Applicant does hereby agree to indemnify, hold
harmless and defend the City and each of its officers, officials, employees, agents and volunteers from any and all loss,
liability, fines, penalties, forfeitures, costs and damages (whether in contract, tort or strict liability, including but not limited
to personal injury, death at any time and property damage) incurred by City, Applicant or any other person, and from any
and all claims, demands and actions in law or equity (including reasonable attorney's fees and litigation expenses), arising
or alleged to have arisen directly or indirectly out of the issuance of a cannabis business permit. Applicant’s obligations
under the preceding sentence shall not apply to any loss, liability, fines, penalties, forfeitures, costs or damages caused
solely by the gross negligence, or caused by the willful misconduct, of City or any of its officers, officials, employees,
agents or volunteers.
Applicant must, at the time of permit issuance, maintain insurance at coverage limits and with conditions thereon
determined necessary and appropriate from time to time by the City Manager.
Applicant shall conduct all defense at his/her/its sole cost. The fact that insurance is obtained by Applicant shall not be
deemed to release or diminish the liability of Applicant, including, without limitation, liability assum ed under this Agreement.
The duty to indemnify shall apply to all claims regardless of whether any insurance policies are applicable. The duty to
defend hereunder is wholly independent of and separate from the duty to indemnify and such duty to defend exists
regardless of any ultimate liability of Applicant. The policy limits do not act as a limitation upon the amount of defense
and/or indemnification to be provided by Applicant. Approval or purchase of any insurance contracts or policies shall in no
way relieve from liability nor limit the liability of Applicant, its officials, officers, employees, agents, volunteers or invitees.
City shall be reimbursed for all costs and expenses, including but not limited to legal fees and costs and court
costs, which the city may be required to pay as a result of any legal challenge related to the city's approval of the
applicant's commercial cannabis business permit. The City may, at its sole discretion, participate at its own
expense in the defense of any such action, but such participation shall not relieve any of the obligations imposed
hereunder.
This Indemnification and Hold Harmless Agreement shall survive the expiration or termination of the Application
and/or Permit.
The undersigned acknowledges that he/she (i) has read and fully understands the content of this Indemnification
and Hold Harmless Agreement; (ii) is aw are that this is a contract between the City and Applicant; (iii) has had the
opportunity to consult with his/her attorney, in his/her discretion; (iv) is fully aware of the legal consequences of
signing this document; and (v) is the Applicant or his/her/its authorized signatory.
Signed on this day of 2020.
Applicant Signature City Employee Signature
Print Name and Company Name Print Name
Address Title
Telephone Number Telephone Number
Megan Souza, MOM FR LLC
2nd December
MOM FR LLC
630 Quintana Road, Suite #113
Morro Bay, CA 93442
December 2, 2020
City of Fresno
Office of the City Manager
2600 Fresno Street
Fresno, CA 93721
To whom it may concern,
MOM FR LLC will employ, within one year of receiving a commercial cannabis business permit,
one supervisor and one employee who have completed a Cal-OSHA industry outreach course
offered by a duly authorized training provider (FMC 9-3316(c)).
Further, Vice-President Eric Powers has completed a Cal-OSHA 30-hour General Industry Safety
and Health course. A copy of Mr. Power’s OSHA card is enclosed with this letter.
Sincerely,
Megan Souza, CEO & Owner
OWNERSHIP ACKNOWLEDGEMENT FORM
FOR COMMERCIAL CANNABIS BUSINESS PERMIT APPLICATION
It is the intent of the City of Fresno to promote equitable ownership and employment opportunities in the cannabis industry to
decrease the disparities in life outcomes for marginalized communities and to provide opportunities for local residents to
compete for cannabis business permits. Therefore, this notice is to clarify the eligibility requirements in order to receive
qualification as a Social Equity Applicant or points for Local Preference by establishing this acknowledgement to provide
additional protections to mitigate against potential predatory practices.
In order to qualify as a social equity applicant, or for the full points relating to the local preference criteria, the business entity
must have ownership that meets the respective eligibility factors and hold at least 51% ownership interest. The social equity
eligibility requirements are identified in FMC section 9-3316(b)(6), while the local preference criteria is identified in FMC 9-
3317(a) and the application evaluation criteria 2.5 (Appendix A). This majority interest can be made up of a single individual that
meets this criteria, or any combination of individuals that hold at least 20% interest individually and meet the definition of an
owner in FMC 9-3304(j). The cannabis social equity permits, and the local preference criteria are intended for the benefit of the
Social Equity or Local Preference Individual Applicants related to business profits, proceeds of the sale of business assets, voting
rights and additional protections. This also requires the Social Equity or Local Preference Owner to receive the Equity Share
percent of the retained earnings and 100 percent of the unencumbered value of each share of stock, member interest or
partnership interest owned in the event of the dissolution of the entity to their equity share, or 100 percent of the value of each
of stock, member interest or partnership interest in the event that the stock, member interest or partnership interest is sold.
Chief among the concepts of equity share, is unconditional ownership which means such individual(s) will receive equal profits,
and distributions or other payments proportionate to their ownership interests. This is intended to ensure true ownership by the
Social Equity or Local Preference Individual Applicant and as such, prohibits the divestment or relinquishment of any part of their
ownership under any circumstance. In addition, the Equity Share is also expanded to address voting rights on fundamental
decisions relating to the business and control of at least the equity share percent of the voting rights on all decisions involving
the operation of the business. Furthermore, it requires the Social Equity or Local Preference Individual owner be the highest
officer position of the business or that another individual is appointed to that position by mutual agreement of the parties. This
requirement is also subject to being audited to assess compliance and the Social Equity or Local Preference Owner can initiate
legal action due to a breach of contract agreement, and the City may suspend and/or revoke a license if any provision in an
operating agreement violates any of the Equity Share or Local Preference requirements. Lastly, all applicants will be required to
incorporate an addendum into their operating agreements that makes any provision ineffective, unenforceable, null and void, if
it is inconsistent with, or in violation of, the Equity Share requirements. As proposed, Social Equity Applicants or Local Preference
Applicants will be required to verify under Section 9-3316(b)(6), 9-3317(a), and Criteria 2.5 of appendix A that they meet the
definition of a Social Equity or Local Preference Owner at the time of applying for a permit or permit renewal. The City shall have
the sole and absolute discretion to determine whether the Applicant qualifies as a Social Equity Applicant and the number of
points for Local Preference.
The undersigned acknowledges that he/she has read and fully understands the content of this Agreement and is
the Applicant or his/her/its authorized signatory.
__________________________________________________ __________________________________________________
Applicant Signature Date Signed
__________________________________________________ __________________________________________________
Print Name Title
__________________________________________________
Company Name Address/Telephone
MOM FR LLC
Megan Souza Managing Member
PLANNING AND DEVELOPMENT DEPARTMENT
2600 Fresno Street • Third Floor Jennifer K. Clark, AICP, Director
Fresno, California 93721-3604
(559) 621-8277 FAX (559) 498-1026
November 25, 2020 Please reply to:
Marisela Martínez
(559) 621-8038
Megan Souza
MOM FR LLC
Dear Applicant:
SUBJECT: ZONING INQUIRY NUMBER P20-04368 REQUESTING INFORMATION
REGARDING CANNABIS RETAIL FOR PROPERTY LOCATED AT 851
EAST FERN AVENUE (APN 451-264-04)
Thank you for your inquiry regarding the allowance of new cannabis retail uses. The
requested information about cannabis retail uses was analyzed using Article 27,
Chapter 15 of the Fresno Municipal Code (FMC) of the City of Fresno. Please note, all
research for this inquiry is based on existing land development of the subject property. If
there are multiple buildings on the subject property, this research was based on the
address provided in the request. This research does not take into effect of future
development unless provided in your application request. With that, research of a
proposed cannabis retail business on the subject property conveys the following:
1. All cannabis retail businesses must be located on property zoned DTN
(Downtown Neighborhood), DTG (Downtown General), CMS (Commercial Main
Street), CC (Commercial Community), CR (Commercial Regional), CG
(Commercial General), CH (Commercial Highway), NMX (Neighborhood Mixed-
Use), CMX (Corridor/Center Mixed-Use), RMX (Regional Mixed-Use), and must
meet all of the requirements for development in these zones, including, but not
limited to, parking, lighting, building materials, etc.
The subject property is zoned CMS, which is one of the allowable zone districts
for cannabis retail businesses. Development standards of the CMS zone district
are available in Sections 15-1203, 15-1204, and 15-1205 of the FMC. The
subject location meets the zone district requirement, per Section 15-
2739.B.1.a of the FMC, for a cannabis retail business.
2. All building(s) in which a cannabis retail business is located shall be no closer
than 800 feet from any property boundary containing the following: (1) A
cannabis retail business; (2) A school providing instruction for any grades pre-
school through 12 (whether public, private, or charter, including pre-school,
transitional kindergarten, and K-12); (3) A day care center licensed by the state
Zoning Inquiry P20-04368
851 East Fern Avenue
Page 2
November 25, 2020
Department of Social Services that is in existence at the time a complete
commercial cannabis business permit application is submitted; and, (4) A youth
center that is in existence at the time a complete commercial cannabis business
permit is submitted.
The subject property is not located within 800 feet of the property boundary of
any of the above-mentioned uses. The subject building meets the separation
requirements, per Section 15-2739.B.1.b of the FMC, for a cannabis retail
business.
3. Prior to commencing operations, a cannabis retail business must obtain a
Cannabis Conditional Use Permit from the Planning and Development
Department per Section 15-2739.N of the FMC.
4. No more than two cannabis retail businesses may be located in any one Council
District. If more than 14 are ever authorized by Council (more than two per
Council District), they shall be dispersed evenly by Council District.
The subject property is in Council District 1. There are currently no cannabis
retail businesses located in Council District 1. This location requirement is
satisfied for a cannabis retail business.
Please review the entirety of Article 33, Chapter 9 (Cannabis Retail Business and
Commercial Cannabis) and Section 15-2739 (Adult Use and Medicinal Cannabis
Retail Business and Commercial Cannabis Business) of the FMC to understand
other requirements of cannabis retail businesses, including but not limited to,
application requirements, signage, etc.
This information was researched by the undersigned per the zoning request. The
undersigned certifies that the above information contained herein is believed to be
accurate and is based upon, or relates to, the information supplied by the requestor.
The City of Fresno assumes no liability for errors and omissions. All information was
obtained from public records held by the Planning and Development Department.
A copy of the Fresno Municipal Code may be obtained by contacting the City Clerk’s
office at 559-621-7650. The Fresno Municipal Code may also be searched on the
Internet, free of charge, by going to www.fresno.gov. If you have questions regarding
this matter, please contact me by telephone at 559-621-8038 or at
Marisela.Martinez@fresno.gov.
Cordially,
Marisela Martínez, Planner I
Development Services Division
Planning and Development Department
APPLICANT MOM FR LLC DOCUMENTATION OF PROOF AND LEVEL OF
CAPITALIZATION FOR CITY OF FRESNO COMMERCIAL CANNABIS BUSINESS
PERMIT APPLICATION
DocuSign Envelope ID: E3888944-EC50-437E-BC3C-A72AEAB0008B
City of Fresno
Commercial Cannabis Business Permit Application
Storefront Retail (Adult-use and Medical)
December 2, 2020
1-2
01. Business Operations Plan
Improving the
health of our
community with
access to quality
cannabis.
This section provides a complete overview of the Megan’s Organic
Market proposal for Fresno.
1.
BUSINESS PLAN
KEY TAKEAWAYS
Trusted Cannabis Operators (7+ Years)
A Wholesome Brand that Resonates with a Broad Demographic
Significant Revitalization of a Vacant Blighted Building
A Team Who Values the Environment and Community
1-3
Executive Summary
The Megan’s Organic Market team
is pleased to submit this application
and looks forward to becoming one
of the first retail cannabis storefronts
in the City of Fresno.
Officially called MOM FR LLC, dba
Megan’s Organic Market (MOM), we
are a California limited liability company, 95% owned by MOM USA LLC, which in
turn is owned by Megan Souza, Allison Borges, and Mark Cardona. This application
seeks approval from the City to operate a cannabis retail shop at 851 East Fern Ave,
Fresno, CA 93728. Accordingly, team MOM respectfully submits this application for a
Cannabis Retail Storefront Permit (the “Permit Application”).
MOM and its owners are a thoughtfully assembled team of experienced professionals
who share a genuine commitment of community building and service, and a desire to
provide patients and customers with access to quality products. We are experienced
and knowledgeable in our trade, excited about what this new industry will bring to
Fresno, and appreciate the opportunity to present this application for consideration.
We believe our planned project will improve the surrounding community, and our
team of best-in-class business owners is prepared to open and operate a truly
exemplary cannabis retail shop. As you will see in reviewing our application, our
venture meets—and exceeds—all criteria specified in the City’s cannabis ordinance,
regulations and beyond.
Megan’s Organic Market was originally founded in 2010 by Megan Souza and Eric
Powers as a medical cannabis cultivation operation and later a Prop. 215 medical
cannabis delivery service. For years, MOM delivery service worked hard to improve
the health of residents by providing safe and reliable access to quality organic medical
cannabis. With its iconic, apron-clad staff delivering the best customer service in
the industry, MOM quickly became one of the most respected Prop. 215 cannabis
collectives in California.
Today, after adult-use legalization, MOM’s 2-acre cultivation site is the largest
licensed cannabis operation in the County of San Luis Obispo, with another 3-acres
currently nearing the end of the Land Use Permit process. MOM also operates the
1-4
first adult-use and medical cannabis retail storefront in the City of San Luis Obispo.
Now, MOM hopes to bring it’s unique and wholesome retail experience to Fresno.
MOM’s mission is to “make cannabis wholesome” and it does this through commitments
to community, stewardship, and education. Community involvement has been a
central part of MOM’s company culture since its founding, and will continue to be
a priority with the proposed Fresno location. From adopting a two-mile stretch of
roadway, to sponsoring community workshops, blood drives, and homeless dinners,
and even hosting a local educational radio show, MOM has an exemplary track
record of responsible community stewardship. Additionally, the owners’ commitment
to community development has led them to serve on multiple nonprofit boards and
commissions including the City of SLO Human Relations Commission, Morro Bay
Neighborhood Watch, Central Coast Cannabis Council, and the Cal Poly Hemp
Business Advisory Group.
The knowledge and experience the MOM team has accumulated through their
entrepreneurial cannabis projects provides the management skills that will guarantee
success. Their extensive commercial cannabis cultivation, retail delivery, and retail
storefront experience can offer Fresno a world-class cannabis retail establishment.
A solid track record of tax compliance, community involvement, and social &
environmental stewardship, make MOM and the Fresno, a perfect match.
The details of our proposal are outlined in the following application and we hope to
work alongside the City as we embark on this new venture. Thank you for your time
and consideration!
Sincerely,
Team MOM
1-5
Megan’s Organic Market is on a mission to
redefine society’s relationship with cannabis
through responsible stewardship. We’re
continually seeking market opportunities
to improve the health of others, and our
community, through education, awareness,
and access to sustainable, high-quality
cannabis products.
Our Mission
Tagline: Making Cannabis Wholesome
Our Values
Making the world a better
place starts with the
community we live in. MOM
is dedicated to charitable
causes and doing good.
Community
MOM is committed to a
high level of corporate
responsibility, setting a
standard for this new and
emerging industry.
Stewardship
Business and the
community benefit from a
more educated world. MOM
strives to spread knowledge
and understanding.
Education
Based on our values, MOM makes decisions holistically, considering the impacts to
the community and the environment in addition to profit.
1-6
We will change society’s negative perceptions of cannabis use, cannabis users, and cannabis
industry workers by embodying wholesomeness. Our employees, products, store design, client
experience, brand aesthetic, marketing campaigns, everything must reflect our commitment to
wholesomeness, breaking stereotypes - cultivating trust - leading with heart.
• our employees are chosen for their personal character, passion for helping others, and history
of community involvement
• our products are chosen for their quality, safety, efficacy, and sustainability
• our reputation comes from maintaining and building our client’s trust
Wholesomeness
We strive for the total thriving of our organization and all the members within it.
• we promote from within
• we invest in our employees
• we care about work-life balance
Positive Holistic Growth
Operation Details
Overview
MOM proposes a medical & adult-use cannabis retail storefront at 851 East Fern Ave, Fresno,
CA 93728, APN: 451-264-04, Zoned: CMS. The vacant and blighted property consists of multiple
adjacent commercial spaces and a dirt lot at the corner of E. Fern Ave and N. Maroa Ave. Associated
addresses are: 851, 855, 857, and 861 E. Fern Street. The combined units total approximately
4,464 square feet of retail space and the site has historical heritage that MOM seeks to revitalize.
A complete overhaul of the property is proposed, including but not limited to:
• Complete facade rehabilitation and major interior renovations
• Visual blight removal
• Beautifying the property through drought tolerant landscaping and wall climbing vines
• Creation of a new parking lot with 17 spaces
• A Net Zero Energy project through solar and energy efficient fixtures
• Three electric vehicle car chargers (including 1 Tesla charger) and a bike rack
• “Dark sky” compliant exterior lighting
• Rain water recapture system
• LEED certification
1-7
Before After
The project will be an upscale, world-class cannabis retail facility that fits in seamlessly with the
community. With commitments to Net Zero Energy, electric vehicle chargers, a bike rack, LED
lighting, drought tolerant landscaping, and rainwater recapture, this project is also in alignment with
Fresno’s environmental commitments. Further, MOM’s proposal would actually decrease impacts
on the community by removing a blighted property that has consistently attracted criminal activity
and for years has burdened law enforcement. MOM’s complete renovation and the installation
of advanced security equipment will decrease crime and beautify the area, making it an ideal
location for a cannabis retail storefront.
The facility plans coupled with MOM’s extensive experience and wholesome brand provide for an
unmatched customer experience that is emblematic of Fresno’s high standards.
Conceptual Interior Rendering
1-10
1.1 Owner Qualifications
MOM is a highly experienced team in both cannabis and general business.
MOM FR LLC is 97% owned by MOM USA LLC, which in turn is owned 65% by Megan Souza, 30%
by Allison Borges, and 5% by Mark Cardona. MOM FR LLC is 3% owned by Catalyst Consulting &
Acquisitions, Inc. which in turn is owned 50% by William Skinner and 50% Tyler Skinner. Pursuant
to Fresno municipal code “an individual who will be participating in the direction, control, or
management” is also defined as an owner. Therefore MOM Vice-President Eric Powers, COO
Nick Andre, and CMO Tarrah Graves are also listed in this section.
MOM FR LLC Shareholder Breakdown
MOM USA LLC 97%
Catalyst Consulting
& Acquisitions, Inc.
3%93.65% Women Owned.
MOM’s San Luis Obispo Cannabis Retail Storefront
1-11
Megan’s Organic Market
Family of Companies
Megan’s MarketsFamily of CompaniesCommercial
Cannabis
Operations
Commercial Hemp
Operations
American Pastoral LLC
Cannabis Retail
MOM SLO LLC
American Pastoral
Hemp Product Line
Megan’s CBD Market
Morro Bay
Hemp Retail Storefront
Megan’s Organic Market San
Luis Obispo
Cannabis Storefront Dispensary
2-Acres Clark Valley
Los Osos, CA
Cannabis Cultivation
Red Truck Management LLC
3-Acres Carrizo
Santa Margarita, CA (Pending)
Good Botany
Hemp Product Line
Powers Labs
Hemp Product Line
Megan’s Markets
Hemp Product Line
The owners of MOM have extensive compliant cannabis experience in retail and cultivation with
no history of state or local violations. Megan Souza & Eric Powers are the owners of San Luis
Obispo’s first cannabis storefront, Megan’s Organic Market (MOM SLO LLC), which is on track
to do sales in its first 12 month period. They also own Red Truck Management
LLC which owns and operates an approximately 2 acre, fully licensed, outdoor cultivation site in
Los Osos, CA. Another 3 acre site in Santa Margarita is nearing the end of the permitting process.
Prior to that they cultivated cannabis under Prop 215 from 2010-2018 in Cayucos, CA and Los
Osos, CA, and ran the popular Megan’s Organic Market medical delivery service from 2013-2018,
which served over 3,000 registered Central Coast patients. Megan’s Organic Market delivery
service has a long history of tax compliance, paying proper sales tax returns since its inception.
Copies of historical returns can be provided upon request. Megan and Eric’s Prop 215 operations
then transitioned to the adult-use entities that operate today. To learn more about the Megan’s
Organic Market story view this short video: https://youtu.be/4bgPISef0cc. See the table on the
following pages for a list of state licenses previously and currently held.
1-12
State License List
Description Location License Type License #
MOM SLO, LLC - Megan
Souza & Eric Powers
280 Higuera St, San
Luis Obispo, CA
BCC Type 10 Adult-
Use & Medicinal -
Retailer
C10-
0000728-
LIC
Red Truck Management
LLC - Eric Powers
2979 Clark Valley Rd,
San Luis Obispo, CA
(Los Osos)
Provisional
Cultivation - Medium
Outdoor
CCL20-
0000232
Red Truck Management
LLC - Eric Powers
2979 Clark Valley Rd,
San Luis Obispo, CA
(Los Osos)
Provisional Cultiva-
tion - Small Outdoor
CCL20-
0000389
Red Truck Management
LLC - Eric Powers
2979 Clark Valley Rd,
San Luis Obispo, CA
(Los Osos)
Provisional Cultiva-
tion - Small Outdoor
CCL20-
0000390
Red Truck Management
LLC - Eric Powers
2979 Clark Valley Rd,
San Luis Obispo, CA
(Los Osos)
Provisional Cultiva-
tion - Small Outdoor
CCL20-
0000391
Red Truck Management
LLC - Eric Powers
2979 Clark Valley Rd,
San Luis Obispo, CA
(Los Osos)
Provisional Cultiva-
tion - Small Outdoor
CCL20-
0000392
Red Truck Management
LLC - Eric Powers
2979 Clark Valley Rd,
San Luis Obispo, CA
(Los Osos)
Provisional Cultiva-
tion - Small Outdoor
CCL20-
0000393
Red Truck Management
LLC - Eric Powers
2979 Clark Valley Rd,
San Luis Obispo, CA
(Los Osos)
Provisional Cultiva-
tion - Small Mixed
Light Tier 1
PAL19-
0001238
Red Truck Management
LLC - Eric Powers
2979 Clark Valley Rd,
San Luis Obispo, CA
(Los Osos)
Provisional Cultiva-
tion - Small Mixed
Light Tier 1
CCL19-
0001238
Red Truck Management
LLC - Eric Powers
2979 Clark Valley Rd,
San Luis Obispo, CA
(Los Osos)
Temporary Cultiva-
tion - Small Outdoor
TAL18-
0010012
MOM’s San Luis Obispo Cannabis Retail Storefront
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1.2 Budget
MOM FR LLC
Start-Up Budget
2021
1-21
1.3 Proof of Capital
1-27
1.5 Hours of Operation
Overview
MOM proposes the hours of operation for it’s upscale, world-class cannabis retail storefront be
7AM - 10PM, or other hours determined in cooperation with Fresno PD, which are within the
requirements of state and local law (CCR 16-42-3 5403 and FMC SEC. 9-3310(a)(1)). MOM will
limit deliveries of inventory to the storefront to Monday-Friday 9am-6pm. MOM will be closed on
some major holidays so employees may be with their friends and family.
Opening Procedures
1. Staff Arrives to the Shop
a. Ideally by about 6:00 am. The security company personnel should be on site.
b. DO NOT enter the premises without security being present.
c. Take a moment to survey the grounds surrounding the shop.
- Note any issues with the property i.e. trash in the parking lot, dumpster gates left open,
condition of the storefront, south side of building, etc.
2. Once Security is onsite, enter the building.
a. Enter through the large wooden doors of the delivery bay.
b. Take out the kiosk, stool and mat for the security stand.
c. Unlock the steel security gate covering the back door. There should be three deadbolts to
unlock.
d. Unlock the back door, here, there should be two deadbolts to unlock.
e. Use the provided security door fob to unlock the back door.
f. Ask staff to stay outside until you are able to disarm the alarm system and confirm the shop is
safe for staff to enter.
g. Use your key fob to unlock the back door and enter the building.
3. Disarm the Alarm System.
a. Alarm keypad is located on the wall at approximately chin height, just to the left of the back
door as you enter. It is a small, white touch screen approximately 5” x 7” and will begin
beeping an audible countdown as soon as the door is opened.
b. You have 30 seconds to disarm the alarm using your personal code. Simply type in code, the
alarm system will disarm automatically.
4. Turn on the Lights
a. Intake room light switch is located on the wall at approximately elbow height, just to the left of
the back door as you enter. Tap the top of the switch to turn on the lights in the intake room.
b. Sales Floor light switches are located on the East wall of the intake room, just to the right of
the A/C control. The four square buttons turn on/off lights on the sales floor. Click each once
to turn on. The two tall switches control the shelf lighting. Press and hold the top portion of the
switch to turn the shelf lights on.
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5. Make Sure the Shop is Secure
a. Do a quick visual sweep of the shop to ensure the location is secure before allowing staff into
the building.
6. Raise the Security Door/Window Shutters
a. The shutter controls are located on the East wall of the Intake room, in a lockable plastic box,
just above the A/C controls.
b. Unlock the box. The same key that opens the A/C controls can be used to open the Shutter
controls.
c. Press the “^” symbol to raise the shutters.
d. Observe the opening to ensure no malfunctions occur.
7. Staff Enter to Begin Setting Up Shop
a. Unlock and open the front door to allow staff to enter.
b. Begin COVID Precautions
- Take all staff temps with touchless thermometer
- Record that temps have been taken on Daily Staffing Sheet
- Review any “Red Flags” created by staff “Self Check Pre-Clock In”
c. Unlock the “Vault”
- Unlock the steel security gate covering the Vault door. There should be three deadbolts
to unlock.
- Unlock the Vault door, here, there should be two deadbolts to unlock.
- Use the provided security door fob to unlock the Vault door.
d. Start Staff on Setting the Sales Floor
- With the help of the opening Inventory staff, remove all rolling carts from the vault.
- Only one door of the Intake room can be open at a time, so move the carts from the
vault then into the Intake room.
- Once all carts are out of the vault and in the Intake room, close the Vault and begin
moving the carts onto the Sales Floor.
- Sales floor should be completely set by 9am.
- Continually give staff time updates to gently push them to open on time.
- Reference the “Sales Floor Set Up” SOP for further specifics
8. Turn on the Stereo
a. The main stereo amp is located in a black metal box, approximately head height, on the West
wall of the Intake room, to the right as you enter.
b. Simply press the “>ll” symbol to start the music.
c. On the “Music/MOD” iPad, ensure that only approved Sonos stations are playing.
d. Ensure proper music levels exist to optimize guest experience.
9. Turn on A/C
a. The A/C control is located on the East wall of the Intake room, approximately chest height, in a
clear plastic box.
b. Unlock the clear box using the key already stationed in the lock or possibly in the lock of the
clear plastic box above it.
c. A/C should be set to between 69 and 71 degrees and “cool”. If any other setting is engaged,
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use the “mode” button located in the bottom left corner of the unit to cycle through options until
“cool” is selected.
10. Fill Out Daily Staffing Sheet
a. Reference “Daily Staffing Sheet SOP” for further specifics
11. Start the Daily “Manager Wrap Up” doc.
a. Copy and Paste the template to the bottom of the document
b. Fill in appropriate information
12. Assign Opening Cash Drawers
a. Reference “Assigning Cash Drawers SOP” for further specifics
13. Count the Safe
a. Reference “AM/PM Safe Count SOP” for further specifics.
14. Conduct the Opening “Talk Into Position”
a. TIP/TOP should take between 5 and 10 minutes
b. Review each staff member’s location/position in the store for their shift.
c. Discuss the weekly TIP/TOP action items.
d. Review any specials or promotions occurring in the store.
e. Open discussion to feedback
f. Begin a great shift
15. Observe Exterior of Building
a. Ensure “Open” signs are in place
b. Clear parking lot of any debris/trash
c. Walkways are swept and clean
d. Note any issues in the “Manager Wrap Up” doc.
16. MOM is Open for Business at 7am!
Closing Procedures
1. Be Proactive
a. Starting around 9:30 or 9:45, assess the need for staff to be on drawers, on the floor or begin-
ning the closing process.
b. Closing procedures that can be done ahead of actual closing should be done at this time.
Trash, cardboard, bathroom cleaning, office cleaning, etc.
c. Having an extra cash wrap on at close may seem like a corner that can be cut, but in order to
have all transactions complete by 10pm, it may be worth the while.
d. Communicate with your floor staff that this is the time to communicate openly and respectfully
with our guests regarding our closing time. If a guest makes it to the register, after 9:45 and
unaware of our closing time, the team has missed an opportunity to give an excellent guest
experience.
e. Gather the rolling carts in the inventory intake room in preparation for a quick close.
f. If staffing allows, send a staff member to retrieve the floor mop/vacuum.
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2. As the Last Guest Leaves the Building
a. The idea of a hard stop to business, while absolutely essential, may be viewed from a guest
perspective as odd or distasteful. It is with this in mind that we must ensure that our last guests
receive as good service as our first guests.
b. Once the last guest has left after 9:55 pm, inform security of the store closing, close and lock
the door.
3. Begin to Take Down the Floor
a. Once all guests have left the building (and not before!) and the front door is locked, run out the
rolling carts so that staff may begin to take down the floor product immediately.
b. Leads should assign budtenders to individual sections for an efficient close.
c. As product is placed onto the rolling carts, remind budtenders that this is a great time to sup-
port our opening team by storing product in an organized and well thought out way.
4. Drawers
a. Gather all drawers from registers
b. Be sure to note which staff was assigned to which drawer and the number of the drawer.
c. Take all drawers to the Inv Intake office. So as to not leave cash in drawers during close and
also to not leave drawers in the intake room, proceed to close all drawers as soon as possible.
d. See “Closing a Drawer” SOP
e. Note any major discrepancies in the drawer counts on the Manager ’s Daily Wrap Up spread-
sheet and the MOM Daily Drop Log.
5. Count the Safe
a. Once all drawers have been counted and balanced, all vendor payments for the day have
been completed and cash transactions are no longer needed, count the safe.
b. Please refer to the “Safe Count” SOP.
c. Utilize the “MOM Safe Count” sheet to count quantities of individual bills/coin. Record each on
the safe count sheet.
d. Total both bills and coin separately and then total both together for the full count.
e. Record the total count on the “MOM Monthly Safe Count’ sheet.
f. Note any and all discrepancies in the count on the Manager ’s Daily Wrap Up spreadsheet.
g. Close and lock the safe. Remember to always spin the combination wheel each time you close
the safe.
6. Lock Up Product
a. As staff fills rolling carts with floor product, gather carts on the retail floor near the Intake room
door.
b. Once all product has been added to the rolling carts and shelves/downstock cabinets are clear
of all cannabis product, take all product to the vault.
c. While in the Intake room, only one door can be open at a time. While moving rolling carts into
the Intake room, ensure all other doors to the Intake room remain closed.
d. Once all the product has been moved from the retail floor to the Intake room, close door be-
tween the two rooms, then open the vault and begin moving product into the vault.
e. Once all cannabis product has been secured in the vault, close and lock the vault.
f. The main door will require two deadbolts be locked, the security gate will require three dead-
bolts be locked.
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7. Verification
a. Once the team has made it known that they have finished their closing duties, verify to ensure
all duties are complete.
b. Check the cleanliness of the shop. Floors should be vacuumed and dry mopped. All counters
should be clear of items and wiped down. Register area should be orderly and wiped down,
etc.
c. Check all shelves (especially up on high shelves) for product.
8. Exit
a. Turn off lights and music, check locks on inventory doors, roll down window covers.
b. All employees clock out of Homebase as they leave.
c. Make your way out the front door, go to alarm.com app and ARM the system first, then physi-
cally lock the door.
d. Security guard conducts a final inspection of the exterior of the building and parking lot before
leaving the premises.
1.6 Day-to-Day Operations
Target Market
MOM has a successful history of targeting the 55 and over demographic, first-time users,
medical users, and women. Our wholesome branding and diverse selection of high CBD products
has attracted cannabis users who appreciate cannabis more for its medical benefits than its
psychoactive effects. This is the fastest growing segment of the market and is a major focus of
the retail operation. MOM will continue its mission of Making Cannabis Wholesome in its Fresno
storefront.
Retail Operation Standards
MOM retail procedures will reflect the following objectives:
• Promoting both compliant and efficient operations;
• Ensuring that no unlawful sales transactions or transfers are permitted or tolerated;
• Implementing handling procedures that prevent contamination of cannabis products; and
• Ensuring transparency of all retail operations.
MOM does not dispense cannabis from, obtain cannabis from, or transfer cannabis to a location
outside of the State of California. Shipments of cannabis goods may only be accepted from
a licensed distributor and must be inspected for freshness. Cannabis goods that may not be
accepted include:
• Goods that have exceeded their expiration or sell-by date;
• Goods that are damaged or contaminated; or
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• Goods containing alcohol or tobacco.
Cannabis goods may only be sold, delivered, and accepted between 6:00 a.m. and 10:00 p.m. PT,
however MOM has voluntarily proposed more restrictive hours stated earlier in this application.
Policy Citation: CCR 16-42-3 5403(a) (2019).
In addition to cannabis goods, only sell cannabis accessories and MOM branded merchandise.
Policy Citation: CCR 16-42-3 5407 (2019)
Only sell live, immature cannabis plants if they meet the following conditions:
1. The plants are not flowering;
2. The plants or seeds were purchased from a nursery holding a valid Type-4 license;
3. Labels are affixed to the plants or packages containing any seeds with the following warning:
“This product has not been tested pursuant to Medicinal and Adult-Use Cannabis Regulation
and Safety Act”; 4. No pesticides are applied to the plants while in retail inventory.
Policy Citation: CCR 16-42-3 5408(c) (2019) and CCR 16-42-3 5408(a) (2019)
Only sell cannabis goods to customers under the following conditions:
1. The cannabis goods were received by COMPANY from a licensed distributor or licensed
microbusiness authorized to engage in distribution;
2. MOM has verified that the cannabis goods have not exceeded their best-by, sell-by, or
expiration date if one is provided;
3. In the case of manufactured cannabis products, the product complies with all requirements
of the California Business and Professions Code;
4. The cannabis goods have undergone laboratory testing as required by the Bureau;
5. The batch number is labeled on the package of cannabis goods and matches the batch
number on the corresponding certificate of analysis for regulatory compliance testing; and
6. The packaging and labeling of the cannabis goods complies with the California Business
and Profession Code, all applicable regulations, and the California Code of Regulations.
Policy Citation: CCR 16-42-3 5406 (2019)
Refuse sales to anyone:
1. Who is unable to produce valid proof of identification;
2. Who appears to be using a fraudulent ID and/or medical registration identification card;
3. Who has exceeded the sales limit for that business day; or
4. Who is acting in an unsafe way that would result in employees or other customers being
harmed.
Never provide free samples of adult-use cannabis, cannabis products, or cannabis accessories
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to any person as part of a business promotion or other commercial activity. Never allow a
representative of another organization, such as a vendor’s sales agent, to do the same. Policy
Citation: CCR 16-42-3 5411(a) (2019)
Unless you are placing a barcode or similar sticker on the packaging of cannabis goods to be used
in inventory tracking, do not package or label cannabis goods.
Policy Citation: CCR 16-42-3 5412(c) (2019) and CCR 16-42-3 5412(b) (2019)
Do not allow a customer who has purchased cannabis goods to leave MOM’s premises unless the
goods are placed in an opaque exit package. Policy Citation: CCR 16-42-3 5412(c) (2019)
Only sell adult-use cannabis goods to individuals who are at least 21 years of age after confirming
their age and identity by inspecting a valid form of identification provided by the customer. Policy
Citation: CCR 16-42-3 5404(a) (2019)
Only sell medicinal cannabis goods to individuals who are at least 18 years of age and possess a valid
physician’s recommendation after confirming their age, identity, and physician’s recommendation.
Policy Citation: CCR 16-42-3 5404(b) (2019)
Never allow a customer or patient to be in the retail area when an employee is not present. Policy
Citation: CCR 16-42-3 5402(b) (2019)
Never sell cannabis goods anywhere besides the designated retail area. Policy Citation: CCR 16-
42-3 5402(c) (2019)
Do not sell cannabis goods that have been removed from their packaging for display. Destroy
cannabis goods no longer used for display, following MOM’s waste policies. Policy Citation: CCR
16-42-3 5405(c) (2019)
Refuse sales to anyone who has exceeded the sales limit for that business day.
Adult-use customers: up to 1 ounce (28.5 grams) of non-concentrate (flowers and pre-rolls),
measured by total weight of the product AND; up to 8 grams of concentrate (as measured by the
total cannabinoid content). Medical patients: up to 8 ounces of non-concentrate (flowers and pre-
rolls), measured by total weight of the product AND; up to 8 grams of concentrate (as measured
by the total cannabinoid content). Policy Citation: CCR 16-42-3 5409(a) (2019)
Only allow for customers to return cannabis goods if all returns are investigated to ascertain the
reason for the return and the customer’s account is notated. Returned product, even if sealed,
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must be destroyed and wasted following MOM’s waste procedures. Policy Citation: CCR 16-42-3
5410(b) (2019)
In coordination with the Director of Security, will ensure the following standard security requirements
are being met:
• At each point-of-sale location, cameras are placed in a way that they are constantly recording
the facial features of patients, caregivers, and employees with sufficient clarity;
• All entrances and exits to the center are recorded from both indoor and outdoor vantage
points;
• The facility is being continually monitored;
• An alarm system is installed and properly working;
• All doors into and within the center are equipped with the proper access control; and
• The facility is continuously recorded 24 hours a day.
Food or beverages may not be consumed in the restricted access areas of the retail facility.
Exceptions may be made, on a case-by-case basis, for customers that require food or beverage
for medical reasons. Note: Employees are allowed to consume food if it is done in an employee
designated break room area that includes a room with floor to ceiling walls and a door that
separates the room from cannabis goods. Policy Citation: CCR 16-42-1 5025(d) (2019)
Loitering on MOM’s licensed premises is strictly prohibited, and measures will be taken to ensure
that individuals will not be permitted to remain on the licensed premises if they are not engaging
in an activity expressly related to the operation of MOM’s facility.
Consumption, smoking, or vaporizing cannabis, tobacco, alcohol, or any illicit drug in the center,
the parking lot, or the surrounding area is strictly prohibited.
Policy Citation: CCR 16-42-1 5025(d) (2019) and CCR 16-42-1 5025(f) (2019)
No cannabis goods packages may be opened on the premises.
Any inappropriate conduct or language will not be tolerated and is cause for being asked to leave
the facility. Repeated offenses may result in permanent refusal of service. For the protection of
consumer privacy and for security reasons, photography or video recording is prohibited within
the facility.
Insurance
MOM currently carries General Liability Insurance and Product Liability Insurance for its
existing operations and will do the same for Fresno storefront.
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Staffing
MOM will have one General Manager who oversees the entire operation of the store. Four
Assistant Managers report to the GM, 1 of which exclusively manages the inventory department.
The 3 Assistant Managers who oversee the floor operations manage several Lead Budtenders
and a staff of approximately 25 Budtenders. The 1 Assistant Manager who oversees the Inventory
Department manages 6 Inventory Associates, 1 of which is designates as a Lead. This consists
of approximately 30-45 employees total. A detailed description of the title/positions and their
respected responsibilities, pay rates, benefits, and programs can be found in Section 2 of this
application. A staffing chart can be found below.
MOM also contracts security guard services and a minimum of 1 security guard, licensed by the
Bureau of Security and Investigative Services, is on the premises during all operating hours,
pursuant to CCR 16-42-1 §5045. Below are abbreviated job descriptions.
MOM FR Staffing Chart: 30-45 Initial Employees
More Than Median Labor Peace AgreementOver Minimum
YesAverage Pay Wage Floor
Employee Benefits
Yes
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i) Describe customer check-in procedures.
• Arriving at MOM customers will be directed by signage to the secure well-lit private parking lot.
• Once in the parking lot, customers will have 17 off-street parking spots to choose from including
1 ADA compliant spot.
• The single customer entry is at the corner of E Fern Ave and N Maroa Ave and is easily visible
to arriving customers.
• As customers approach the (bulletproof) glass storefront with attractive double doors, they will
enter into a secure and well appointed lobby .
• There they will be greeted by a friendly receptionist who will check to make sure they have their
ID (and their medical identification card or physician’s recommendation if they are a medicinal
cannabis patient or primary caregiver). An individual will not be admitted to the premises unless
a receptionist has verified the individual’s proof of identification. The identification must contain
a name, photograph, and date of birth, and shall be limited to one of the following:
1. A document issued by a federal, state, county, or municipal government, or a political
subdivision or agency thereof, including, but not limited to, a valid motor vehicle operator’s
license, that contains the name, date of birth, height, gender, and photo of the person;
2. A valid identification card issued to a member of the Armed Forces that includes the
person’s name, date of birth, and photo; or 3. A valid passport issued by the United States
or by a foreign government. MOM will refuse to grant access to the retail sales floor or sell
cannabis goods to any individual who is under 21 years of age. Policy Citations: CCR 16-
42-3 5404(a) (2019) CCR 16-42-3 5404(b) (2019)
• Individuals who are not at least 21 years of age will be politely asked to leave. Refusal to leave
will be considered trespassing and local law enforcement will be notified.
• If it is discovered that the individual’s identification, registration card, or physician’s
recommendation is invalid, expired, or fraudulent, the individual will be asked to leave the
premises and any fraudulent identifications will be confiscated and reported to the Bureau of
Cannabis Control and local law enforcement.
• Once an individual is verified as having the appropriate identification, the receptionist will
enter the eligible customer’s information into the Point of Sale system. This includes but is not
limited to full name, address, date of birth, ID number, and ID expiration date.
• The receptionist will then allow the patient, caregiver, or adult consumer to proceed inside
the store by “buzzing” them in through the remotely controlled secure door, unless maximum
occupancy has been reached. Receptionists can see into the retail floor through glass windows
and also communicate with retail floor employees via two-way radio so that occupancy limits
can be properly adhered to. When capacity is reached, customers will wait in the lobby. The
next customer will enter as one exits the store. This will create a smooth flow during high traffic
times.
• Once in the retail space, a staff member will greet the customer with a smile and a warm
introduction before escorting the customer onto the retail floor. Under no circumstance will a
customer be allowed to enter the retail space without the presence of employees.
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The Customer Experience Post Check-In
• The customer will then engage in the shopping and education experience and select items
they wish to purchase with the assistance of a customer service representative. The store
will offer a visual display of cannabis products protected in glass display cases (unless
the City expressly allows otherwise as seen in the San Luis Obispo storefront). Cannabis
goods for inspection and sale will only be displayed in the retail area and in a place not
visible from outside the licensed premises. Customers will be allowed to inspect packaged
cannabis products without opening them. Megan’s Organic Market will also provide display
samples of packaged cannabis products that will be stored in transparent sealed containers.
Customers must be supervised by a customer service representative when handling
cannabis samples and cannabis samples will not be readily accessible to customers. For
cannabis flower samples, customers prefer to be able to smell the product; to provide for
this while still maintaining the security of the sample, we will use Sensory Pod™ from Bud
Bar Displays. These pods secure the product while offering a closable area of small holes
so that the cannabis product can share its aroma. Cannabis goods removed from their
packaging for display will not be sold, will not be consumed, and will be destroyed when the
cannabis products are no longer used for display. Megan’s Organic Market may also carry
non-cannabis items for retail, however under no circumstance will alcohol (except where
allowed in cannabis tincture), tobacco products, or non-cannabis plants be available for
purchase.
• All Megan’s Organic Market staff are continually trained to be as knowledgeable as possible
about our products. Once the customer has had all of their questions answered and has
made a purchase selection, the customer service representative will then go over how to
use the products selected as well as provide educational pamphlets that teach customers
about everything from dosing to modes of ingestion. Sample pamphlets are included in
this application, see Exhibits. Customer service representatives and educational pamphlets
emphasize preventing the consumption of too much cannabis, especially too much of
an edible product. Ingesting an excess of cannabis, although generally safe, may be an
uncomfortable and unpleasant experience for some customers. Megan’s Organic Market
takes responsibility to do its part in preventing such incidents.
• Once the customer has completed their shopping, they will be escorted to one of at least
five register stations where a customer service representative will check-out the customer.
Another ID verification will take place and the items being purchased by the customer are
tracked in the Point-of-Sale in a customer account that tracks daily purchasing limits.
• Adult-use customers will be restricted to the daily limit of up to 28.5 grams (g) of cannabis
flower and up to 8 grams (g) of cannabis concentrate.
• Customers will then make payment at the time of sale and will be given a receipt. All items
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will be placed in an opaque exit bag and then given to the customer.
• The customer will then exit the premises through the designated exit. No loitering or
consumption of any cannabis products on the premises (including the parking lot) is allowed.
Security guards are trained to watch for such activity.
ii) Identify location and procedures for receiving deliveries during business
hours.
The first step in procuring product at MOM is due diligence performed by the Purchasing Manager.
Prior to executing a purchasing agreement all products are carefully evaluated in several categories:
compliance, consumer safety, local preference, quality, price, and aesthetic compatibility. Each
product must be compliant with all state and local regulations and the Purchasing Manager must
obtain and verify documentation from each vendor including but not limited to: copies of state
licenses, valid Certificates of Analysis, sellers permit, a completed IRS Form W-9, etc.
The Purchasing Manager also obtains product samples and verifies quality, and whether the
packaging and labeling requirements are met. MOM has developed checklists and a detailed SOP
for each product type with extensive compliance checking procedures. An example of what the
Purchasing Manager would be examining for an edible product is below:
1. Edible cannabis goods may not exceed 10 milligrams of THC per serving and may not
exceed 100 milligrams of THC per package.
1. No package or label is made to be attractive to children. CA BPC 26120(b) (2017)
2. The labeling is not false or misleading in any way. Note: This includes any indication that the
cannabis or cannabis product is organic, unless the National Organic Program authorizes
organic designation and certification for cannabis and the cannabis or cannabis product
meets the requirements for such designation and certification. This includes the use of the
word “organic” on the labeling, or variants in spelling such as “organix”. CCR 17-01-13 40410(c)
(2019) and CCR 17-01-13 40410(f) (2019) and CA BPC 26121(a)(2) (2017)
3. Is not labeled as beer, wine, liquor, spirits, or any other term that may create a misleading
impression that the product is an alcoholic beverage.
4. The product is in its finished form and is labeled and packaged in final form for sale. CCR
17-01-13 40401(a) (2019)
5. All required label information is written in English.
6. The primary panel and informational panel contain all required information per the CA
Department of Public Health.
7. The universal symbol is at least 0.5 inches by 0.5 inches and is printed legibly and
conspicuously. CCR 17-01-13 40412(d) (2019)
8. Contains a Prop 65 warning.
9. The package is tamper-evident. CCR 16-42-2 5303(a)(1)(B) (2019) and CCR 17-01-13
40415(b) (2019)
Once all due diligence has been completed and documentation has been verified a purchase
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order may be placed and a delivery scheduled with a licensed distributor.
Accepting Incoming Products
MOM has strict controls for how to manage every stage of the intake process of cannabis products.
MOM has a dedicated inventory team who exclusively work in the restricted access area of the
storefront where vendor deliveries are accepted and processed.
Inventory intake tasks will be performed only upon a previously scheduled and approved delivery
of a shipment of inventory by a licensed distributor to MOM’s licensed premises. Deliveries are
accepted Monday-Friday 9am-5pm only. Vendors must check-in with security personal upon arrival
and paperwork must be verified by MOM inventory personnel before being allowed to proceed into
the secure enclosed delivery bay. Unscheduled and unapproved deliveries will not be accepted.
MOM will receive the cannabis at the designated, secured loading/unloading bay, under video
surveillance, of the licensed premises. The loading bay is protected by 12 foot tall wood or sheet
metal fencing and products are not allowed to be unloaded until the gate is closed and locked. A
set of doors from the loading bay lead directly into the restricted access inventory intake room.
Vendors/Distributors are authorized individuals and will be allowed to enter the limited access
area only if escorted by a MOM employee at all times. See diagram on the next page for exact
location of delivery bay and intake room.
Types of records produced and maintained when acquiring new inventory will include a METRC
shipping manifest and a sales invoice or receipt. The sales invoice or receipt needs to disclose,
at minimum, MOM’s legal business name and license number. MOM will not accept any delivery
of cannabis or cannabis products without receiving a copy of the METRC shipping manifest
containing necessary and accurate information from the licensed distributor responsible for making
the delivery at least 24 hours prior to delivery.
Shipments of cannabis goods must be inspected for freshness and quality. Cannabis goods that
have exceeded their expiration or sell-by date may not be accepted. MOM will not engage in
any packaging or labeling of cannabis or cannabis products, and will not accept any cannabis
or cannabis products from a distributor that are not packaged for final sale. If a MOM employee
discovers there is a defect or non-conformity in an inventory shipment, they will refuse it.
MOM has a detailed SOP and set of checklists for processing the receipt of cannabis inventory
that include but are not limited to:
• Verifying the METRC manifest matches the count of items and METRC UIDs received.
• Verifying Certificates of Analysis match the batch numbers on the product labels.
• Verifying packaging and labeling are compliant.
• Accepting manifest in METRC and ensuring driver and MOM employee sign paper copies
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that are retained, and electronically filed with invoice.
• Following MOM SOP for importing inventory from METRC into Point of Sale and printing
barcode labels.
MOM pays all vendors by check to increase security. Vendors are allowed to leave the delivery
bay only after products have been moved into the Restricted Access Inventory Intake Room. The
roll-up door is then raised and the vendor leaves the premises.
LOBBY/RECEPTIONSECURITY
COUNTER
EXIT ONLY
BUZZ-LATCH ENTRY
DOOR
OFFICE
TRAINING AND
MEETING RM.
LIMITED ACCESS
IT/SECURITY RM.
STAFF BREAK RM.
RESTROOM
RESTROOM
LIMITED ACCESS
STORAGE VAULT
LIMITED ACCESS
INVENTORY/INTAKE
ROOM
RETAIL FLOOR
LIMITED ACCESS
DELIVERY BAY
CHECKOUT COUNTER
12' REFRIGERATED
FLOOR DISPLAY
12' REFRIGERATED
FLOOR DISPLAY
1950'S FARM
TRUCK BED
FABRIC
AWNING
ABOVE
MERCH.
FRIDGE
MERCH.
FRIDGE
EXISTING WALL TO REMAIN
PROPOSED PARTITION WALL
(NON-STRUCTURAL)
34'-4"
72'-2"14'-8"78'-9"15'-10"29'-10"18'-6"37'-10"9'-8"24'-7"64'-1"8'-8"15'-11"14'-8"9'-5"17'-4"6'-2"10'-4"5'-6"6
7
'
-
3
"
NEW EMERGENCY EXIT
DOOR W/ ALARM
51
'-5
"
ACCESSIBLE PATH OF TRAVEL
PRELIMINARY FLOOR PLAN 2
DATE 12/2/20MEGAN'S ORGANIC MARKETTENANT IMPROVEMENTS845 EAST FERN AVENUEFRESNO, CADATE#DescriptionGRAPHIC LEGEND
12/3/2020 2:44:05 PMPictured: MOM Fresno Floor Plan, Secure Delivery Bay Highlighted in Red at Top Left of Diagram
Point-of-Sale Locations Highlighted in Green
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iii) Identify the name of the Point-of-sale system to be used and the number
of Point- of-Sale locations.
MOM will utilize Treez as the point-of-sale system for its retail storefront. Treez is fully integrated
with METRC track and trace software, and has robust inventory tracking and auditing functionalities.
Treez also ensures compliance with tax laws, verifies IDs and age using ID scanning, tracks
purchasing limits across all locations, and much more. Additional information about Treez can be
found at: https://treez.io
MOM will deploy at least 6 point of sale registers and have 1 express pickup station for customers
who place their order online in advance of visiting the store. The register locations are designated
on the floor plan on the previous page as “checkout counter” and highlighted in green. The registers
are strategically located for staff to be able to have a clear view of the retail floor.
MOM will also have 4 mobile point-of-sale units that utilize tablets, mobile belt-clip receipt printers,
and cash bags for customer deliveries.
iv) The estimated number of customers to be served per hour/day.
MOM expects to serve an average of 500-900 customers per day in its first 12 months of operation,
with consistent growth occurring in subsequent years. Fridays and Saturdays are expected to
be on the higher end of the stated range, while weekdays would be on the lower end. A MOM
customer spends an average of 10 minutes inside the store which allows for efficient turnover.
Peak hours are typically between 3pm-6pm where upwards of 150 transactions can occur in a one
hour period. The facility is adequately designed to handle such customer flow and has sufficient
parking. MOM has experience handling high customer volumes at its current San Luis Obispo
retail store.
Pictured Right: Example
of MOM’s vintage style
marketing collateral.
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v) Describe the proposed product
line to be sold and estimate the
percentage of sales of flower and
manufactured products.
MOM began as a Prop 215 Medical cannabis
collective and MOM’s offerings have always
geared toward the needs of medical patients.
MOM will continue providing products that
serve the medical needs of its customers by
maintaining shelf space for products such as
transdermal patches, topical salves, sublingual
sprays, capsules, and tinctures.
In addition to retail medical cannabis products,
MOM will also provide retail adult-use cannabis
products to consumers. Many adult-use cannabis consumers are medical users who choose not to
get their medical cannabis license. Other adult-use consumers use cannabis as part of a workout
routine, sleep routine, or social activity. MOM will carry products for all of these different consumer
needs.
The fastest growing category of both medical or adult-use consumers is first-time users. MOM
will carry products designed for first-time users such as low-dose THC products, CBD:THC
combination products, and ingestibles such as edibles and sublinguals. MOM will also provide
education to first-time users on proper dosing, driving under the influence, cannabis use disorder,
keeping cannabis away from kids and pets, cannabis and pregnancy, etc.
Products will not be visible through windows or by any other means from outside of the dispensary.
All of MOM’s advertising will be targeted to adult audience over 21 years old.
Product Types
High CBD
MOM’s brand was crafted to appeal to seniors and new cannabis users. Because of this, we’ve
always maintained and will continue to maintain a large offering of high-CBD products. High-CBD
products are more approachable to seniors and new cannabis users who want the benefits of
cannabis without the psychoactivity of THC. High-CBD products will remain an integral part of
MOM’s offerings.
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Low-Dose THC
Low-dose THC products are the best choice for new cannabis users who have yet to establish
their THC tolerance level as well as those who want the benefits of THC without the negative
effects of too much psychoactivity. Low-dose THC products include edibles starting at 1 mg THC
per serving as well as tinctures, dissolving strips, and sprays that allow consumers to adjust and
control dosage according to their needs.
Flower
The smokable portion of the female cannabis plant is the most popular product type and comes
in many strain varieties. Flower is the most popular product type at MOM and accounts for
approximately 36% of sales.
Edibles
Edibles, typically food products like gummies or cookies that are infused with cannabis oils, are the
2nd best selling category at MOMs. Industry-wide this is typically not the case, however MOM’s
older, more female clientele prefer edibles over other popular categories. A strong selection of
ingestible inventory will be devoted to low-dose and micro-dose edibles as these products most
appeal to MOM’s clientele. No edibles resembling candy or will be sold. Strict State regulations
control types of edibles allowable, dosage, packaging, labeling and more. Educational pamphlets
about proper dosing for cannabis edibles will be offered to new users. Edibles account for
approximately 32% of sales at MOM.
Concentrates
Concentrates are isolated cannabinoids and terpenes that come in many forms, and are an
important type of cannabis medicine. MOM will carry a wide selection as concentrates are a top
choice for patients dealing with severe pain, seizures, muscle spasms, panic attacks, and opiate
withdrawal as well as for patients who have a high tolerance for CBD or THC. MOM will provide
instruction on safe-use of cannabis concentrates as well as display educational signage warning
about the extremely high potency of cannabis concentrates. Concentrate and vape products
account for approximately 23% of sales.
Vape Products
MOM will carry a wide selection of vaporizer cartridges and accompanying batteries. Vapes heat
cannabis oils and great aerosols that are inhaled. MOM is committed to only selling vaporizer
products without potentially harmful additives and will provide educational materials about vaping
including safe and effective use as well as the need to limit use to designated smoking areas only.
MOM will not sell single-use disposable vape products due to our social commitment to limiting
single use waste. Vape and concentrate products account for approximately 23% of sales.
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Topicals
Lotions, balms, patches, other topical products are infused with cannabis oils are can be
transdermal or non-transdermal (not absorbed into blood stream and therefore non-psychoactive).
These products are popular with customers seeking relief from arthritis and other inflammatory
conditions. Topicals account for approximately 3% of sales at MOM.
Other Ingestibles
Cannabis ingestibles come in many forms and MOM will carry a wide array including: tinctures,
dissolving strips, oral sprays, capsules, cooking oils, etc. MOM will encourage non-smoking
modes of consumption such as these as they reduce consumers risk of diseases associated with
smoking. Other ingestibles account for approximately 4% of sales at MOM.
Plants & Seeds
MOM may sell clones and seeds of the cannabis plant. An informational sheet with local regulations
1-45
on personal cultivation will be included with every purchase of clones and seeds. Plants and
seeds currently account for less than 1% of sales at MOM.
Gear
MOM will carry cannabis accessories such as vaporizer batteries and pipes. MOM will also carry
branded merchandise that are approved by the BCC like clothing and re-usable water bottles.
Gear account for approximately 2% of sales at MOM.
Services
Because seniors and first-time users have traditionally made up a large part of MOM’s clientele,
patient/customer consultations are essential to determining which products are appropriate for
a given individual’s needs. MOM will readily offer free patient consultations to all customers.
Additionally, MOM will run a specialized medically-focused appointment-only free consultation
program overseen by experts in the medical field to further assist those with debilitating medical
conditions.
MOM will also offer in-store educational tours and workshops. Workshops will cover basic cannabis
knowledge including safe-use, dosing, modes of ingestion, possible risks, resources for more
knowledge, etc. MOM will also offer resources and referrals for patients/clients with addiction
issues.
Labeling and Packaging
Products sold by MOM will be properly labeled to ensure consumers are informed about what they
are purchasing and to prevent unintended use. MOM will ensure all products meet the guidelines
provided by the California Department of Public Health (Labeling Requirements Manufactures
Cannabis Products) and the requirements of Division 10 of the Business and Professions Code
(Chapter 12 Packaging and Labeling). MOM has a reputation for sourcing the highest quality
products in the industry. In accordance with State regulation, all retail products sold by MOM will
leave the dispensary in opaque exit bag.
Quality Control of Products
MOM has many operating procedures in place to ensure the highest quality of products. MOM will
ensure all cannabis and cannabis products are dispensed in a safe and sanitary manner that ensures
the identity, strength, quality, and purity of cannabis goods. MOM will properly store inventory,
properly clean the facility, and use environmental controls and pest control management to ensure
that cannabis goods are maintained in a way that prevents deterioration and contamination.
MOM’s facility is designed with a secure, designated inventory storage room (vault) that is
1-46
segregated from: All other storage areas; Employee break rooms; and Bathrooms located indoors.
Further, the inventory storage room is: Indoors;
Equipped with temperature and humidity controls designed to decrease likelihood of degradation
and preserve the quality and longevity of the inventory stored within; Contains refrigeration
equipment and environmental controls; Contains no windows; and Is kept dark, dry, pest-free, and
well-ventilated. All cannabis storage spaces will be climate regulated to 66-70 degrees Fahrenheit
and 45% to 55% Relative Humidity.
MOM has implemented the following quality control policies:
• Confirm that all employees have received Quality Control Training and are competent to
adhere to all MOM Standard Operating Procedures.
• Instruct relevant employees to complete all daily cleaning tasks and conduct a sanitation
inspection once tasks are completed.
• Check all areas (storage rooms, coolers, etc.) for visible rodent droppings and insects daily.
• Only receive and accept inventory that satisfies all internal and regulatory standards, including
identity, strength, quality and purity. This includes verifying that: All cannabis goods received
have not exceeded their best-by, sell-by, or expiration dates, if provided; All manufactured
cannabis products received comply with Business and Professions Code section 26130 and
California Code of Regulations - Manufactured Cannabis Safety; All cannabis goods received
have undergone lab testing; and The packaging and labeling of all cannabis goods received
is compliant. Policy Citations: CCR 16-42-3 5406(b) (2019) and CCR 16-42-3 5406(c) (2019)
and CCR 16-42-3 5406(f) (2019) and CCR 16-42-3 5406(d) (2019)
• Store and handle inventory in a manner that prevents the deterioration of any cannabis goods
stored at MOM. This includes, but is not limited to: Confirming that all area environmental
controls within the inventory storage room and on the sales floor, including temperature,
light, and humidity, are operational and functioning as desired; Verifying products needing
refrigeration or freezing are properly stored in refrigerators and freezers in the storage room
and the sales floor; Product is not to be placed directly on the ground, always use designated
inventory bins for product storage.
• Never sell product that is expired or past its “best by” date.
From the moment the product is received from the distributor, the product will be handled with
extreme care so as to minimize physical damage. The product will immediately be stored in the
secure inventory intake area which will be climate regulated. From there they will be moved into
the climate regulated vault. The vault will be carefully organized using inventory bin organizational
systems in a way that will prevent damage to the products. Products will then be able to be
transferred to the retail floor as needed which will also provide a climate controlled environment.
Care will be taken to ensure that products are not damaged from light exposure. Product rotation
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will be observed by moving the newest products to the back of the inventory shelf. No products
past their expiration date will be sold. Employees will seek customer input as to their satisfaction
with product quality. Product quality control is also governed by which products MOM chooses to
retail and secondary quality inspections occur at intake. MOM has always done and will continue to
do extensive research on available products and the products it chooses to carry. By only carrying
products from the most reputable producers and distributors, MOM can ensure the highest quality
consumer experience.
Cannabis goods removed from their packaging for display will not be sold, will not be consumed,
and will be destroyed when the cannabis products are no longer used for display.
Contamination Prevention Procedures
Hazardous materials other than normal household cleaners may not be brought onto site without
written consent of MOM officers. No chemicals or hazardous materials of any kind may be stored in
the cannabis products vault where products are stored. Cannabis products may only be cleaned with
water and a clean towel. When possible all cleaning products should be made of natural ingredients.
When cleaning, care must be taken to not overspray or contaminate cleaning products onto cannabis
products. No commercial pest control methods may be applied by any MOM employee, only a licensed
pest control commercial applicators may use pesticides. Pesticides for pest control of commercial pests
may only be considered as a last resort due to the possibility of cannabis product contamination. Special
care and preparation would need to be taken to ensure that no cannabis product was contaminated
during any commercial pesticide application.
Product Handling Procedures
Stocking Inventory to the Sales Floor
Using Treez all inventory is tracked by product batch and by “room”. MOM designates the sales
floor and the vault as separate rooms within the system to allow for easy spot check audits in either
location. Inventory must be transferred in Treez to the sales floor before physically moving the
product. Doing so is done using a handheld barcode scanners that scan the barcode of product,
ensuring that the system transfers the correct batch of the product being moved. Inventory staff
periodically run reports throughout each day to determine which products need to be re-stocked
from the vault to the sales floor. Only inventory staff members are allowed to move inventory
between rooms.
A comprehensive overview of product handling procedures is further described in Section 1.8.
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vi) Describe delivery service procedures, number of vehicles and product security
during transportation.
MOM will operate storefront and delivery retail services from the retail licensed premises. MOM
will have 3 delivery vehicles to offer in-person cannabis goods delivery to MOM’s valued patients,
caregivers, and adult-consumers at any valid physical address within our the permissible delivery
radius. Only authorized and properly trained employees of MOM’s licensed retail operation will
be permitted to deliver cannabis goods from the licensed premises to consumers. Each delivery
employee must be 21 years of age or older. MOM will maintain an accurate list of delivery
employees and will provide it, upon request, to representatives of the Bureau and local and state
law enforcement. MOM will not deliver cannabis goods through the use of an unmanned vehicle.
Deliveries of cannabis goods may only be made between the hours of 6:00 a.m. and 10:00 p.m.
PT, or within a more restrictive delivery time specified by the Bureau or the locality in which the
delivery is made. Delivery employees will carry no more than $5,000 worth of cannabis goods
(calculated using the current retail price of the cannabis goods) at any given time. No more than
$3,000 worth of those cannabis goods may be prepared for orders that have not yet been received
and processed by MOM. Policy Citations: CCR 16-42-3 5418 (2019); CCR 16-42-3 5415(a) (2019); CCR 16-42-3
5415(b) (2019); CCR 16-42-3 5415(c) (2019); CCR 16-42-3 5415(f) (2019).
Product Security During Transportation
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Tracking and Monitoring
Returning to Premise
If MOM’s delivery driver does not have any delivery requests to be performed for a 30-minute period, he
or she will not make any additional deliveries and will return to the licensed premises. Upon returning
to MOM, all undelivered cannabis goods will be physically returned to inventory by the delivery driver
that same day. All necessary internal inventory and CCTT-METRC records will also be updated, as
appropriate, that same day by the authorized retail employee. The delivery driver will perform the below
tasks until the undelivered cannabis goods are physically returned to COMPANY. The authorized retail
employee will, at that point, perform the rest of the below tasks.
Policy Citations: CCR 16-42-1 5049 (2019); CCR 16-42-1 5049(a)(5) (2019); CCR 16-42-3 5418(i) (2019); CCR 16-42-3
5418(j)(2019).
Delivery Documentation & Recordkeeping
A delivery employee must carry the following documentation when conducting deliveries on behalf
of MOM: A copy of MOM’s current retail license; A copy of the QR Code certificate; The employee’s
driver’s license; A MOM employee badge; A physical or electronic copy of the delivery request receipt for
each delivery in progress; A physical or electronic copy of the delivery inventory ledger; and A physical
or electronic copy of a driving log. The documents required for delivery order fulfillment will include
MOM’s delivery request form, a delivery request receipt, and a delivery inventory ledger. The form
and the receipt are specific to each individual order, while the ledger includes all on-hand inventory for
each delivery trip. Each delivery request receipt must meet the requirements described in the Delivery
Request Receipt SOP. Delivery request documentation will comply with state and federal laws for the
protection of confidential medical information. Other records associated with delivery are all delivery
employee training documentation and delivery personnel records. Delivery records, delivery employee
training records, and delivery personnel records will be legible and stored in a secure area at MOM’s
facility where they will be protected from debris, moisture, contamination, hazardous waste, fire, and
theft. The records will be subject to inspection by the Bureau and will be maintained for a period of 7
years and will be made available to the Bureau upon request. The Director of Security is required to
notify appropriate law enforcement authorities and the Bureau within 24 hours after the discovery of
theft or physical loss of confidential records.
Policy Citation(s): CCR 16-42-3 5415(d) (2019); CCR 16-42-1 5037(a)(1) (2019); CCR 16-42-1 5037(a)(2) (2019); CCR 16-
42-1 5037(a)(3) (2019); CCR 16-42-1 5037(b) (2019); CCR 16-42-1 5037(c) (2019); CCR 16-42-3 5415(e) (2020).
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R- Delivery Overview
A.Promoting Compliant and Efficient Delivery Operations:
1.When scheduling delivery routes, schedule all routes so as to ensure that all requested orders are delivered while
making certain that the route varies from common, previously used routes and that deliveries will not be made to
public property, schools, or non-physical addresses. Schedule all delivery times according to the schedules of the
delivery employees and the receiving customers’ needs.
Please see the Delivery Route Planning SOP for MOM's policies and procedures regarding route planning and
delivery security.
CCR 16-42-3 5421 (2019) CCR 16-42-3 5416 (2019)
2.When receiving delivery requests, accept them via:
1.Delivery app, used for connecting the customer to MOM for the purpose of placing an order of
cannabis goods, not for the actual delivery of the cannabis goods;
2.Phone; or
3.Online orders.
Reference MOM's Delivery Requests SOPs for more information on the policies and procedures that must be
followed when receiving and processing consumer delivery order requests.
Best Practice
3.Upon receiving a delivery request, use CCTT-METRC or MOM's chosen computerized seed-to-sale system to
generate a delivery request receipt that includes:
1. MOM's name and address;
2.The first name and employee number of the delivery employee who will deliver the order;
3.The first name and employee number of MOM's retail employee(s) who prepared the order for
delivery;
4.The first name of the customer and a MOM-assigned customer number for the person who
requested the delivery;
5.The date and time the delivery request was made;
6.The delivery address;
7.A detailed description of the cannabis goods requested for delivery;
8.The total amount paid for the delivery, including taxes, fees, cannabis goods cost, and delivery
charges.
Refer to MOM's Delivery Request Receipts SOP for the policies and procedures that must be followed when
preparing and maintaining delivery request receipts.
CCR 16-42-3 5418(g) (2019) CCR 16-42-3 5420(a) (2019)
4. Create delivery inventory ledgers of all cannabis goods that will be provided to delivery employee. Use information
from the delivery request form and the delivery request receipt. For each cannabis good, the delivery inventory
ledger will include:
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Page 5 of 6
Type of good;1.
Brand;2.
UID;3.
Retail value;4.
An accurate measure of the good, such as the weight or volume.5.
See MOM's Preparing Cannabis Goods for Delivery SOP for the procedures that must be followed when preparing
cannabis goods for delivery.
CCR 16-42-3 5418(e) (2019)
5.After a MOM delivery employee returns to the retail facility after making deliveries, confirm that all undelivered
inventory is consistent with delivery inventory records by conducting an inventory reconciliation to reveal whether or
not there are any inventory discrepancies and account for all undelivered inventory in MOM's chosen computerized
seed-to-sale system and CCTT-METRC.
Refer to the Returning to the Retail Premises After Delivery SOP for MOM's procedures that must be followed when a
delivery employee returns to the retail premises after conducting deliveries.
CCR 16-42-3 5418(j) (2019) CCR 16-42-3 5424(b) (2019) CCR 16-42-3 5424(c) (2019) CCR 16-42-1 5049 (2019)
6.When the delivery employee returns to MOM after completing all deliveries, conduct an internal audit to ensure that
all inventory for the delivery has been accounted for in order to prevent diversion, loss, theft, or negligence. See
MOM's Auditing Delivery Activities SOP for information on the internal audit process for MOM's delivery system.
CCR 16-42-1 5036(a)(1) (2019)
B.Ensuring that No Unlawful Sales Transactions During Delivery are Permitted or Tolerated
1.1. When performing the delivery, instruct delivery employees to:
1.Use the MOM-issued mobile identification card reader to confirm the identity and age of each qualified
registered patient, caregiver, or adult-consumer.
2.Immediately exit the premises, return to the delivery vehicle, and communicate to personnel at the
retail store via radio or phone if a customer’s credentials do not match.
3.Provide the customer with a copy of the delivery request receipt after the product is in the possession
of the customer and add the date and time of the delivery to the receipt. Note: The customer is to
verify the accuracy of the delivery request receipt, initial each line item on the invoice, and place their
full signature at the bottom of the receipt to indicate receipt of the merchandise.
4.Return to MOM using an approved randomized route without making any stops in the case that no
requests are received in a 30-minute period.
5.Call MOM and report any changes and record those changes in the delivery incident log upon arrival if
employee deviates from the pre-planned route.
CCR 16-42-3 5421 (2018) CCR 16-42-3 5420(a)(9) (2019) CCR 16-42-3 5418(f)(2019)CCR 16-42-3 5415(f)(2019)
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Megan's Organic Market
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2. In coordination with the Director of Security, ensure that all delivery vehicles are installed with a GPS device that is
owned by MOM and is used to track and monitor in real time delivery employees who are conducting deliveries. CCR
16-42-3 5417(d) (2019)
C.Implementing Handling Procedures that Prevent Contamination of Cannabis Goods During
Delivery:
1.Place delivery orders in resealable, tamper-evident, child-resistant, opaque packages.
See MOM's Packaging Cannabis Goods for Delivery SOP for more information about packaging and preparing cannabis
goods for delivery.
CCR 16-42-3 5413(a)(1) (2019) CCR 16-42-3 5413(b)(1) (2019)
2.Use locked transport boxes to deliver products to ensure the security of goods as well as to further prevent
contamination of goods during delivery.
See the Securing Deliveries in the Vehicle Lock Box SOP for an overview of MOM's security measures implemented for
the storage and secured delivery of cannabis goods.
CCR 16-42-3 5417(b) (2019)
D.Ensuring the Training and Safety of all MOM Delivery Employees:
1.With the oversight of the Director of Retail Operations, ensure all delivery employees have the education, training,
and experience, or any combination thereof, to enable them to perform all assigned delivery functions.
CCR 16-42-3 5415(a) (2019)
2.Referencing MOM's Delivery Employee Training SOP, train delivery on the following subjects:
1.Delivery safety;
2.Handling inventory;
3.Delivery routes; and
4.Performing the delivery.
Best Practice
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Policy:
MOM offers an in-person delivery service to registered qualifying patients, personal caregivers, and adult consumers located at a
physical address within MOM's delivery radius in California. All delivery orders must be processed and confirmed as described in
MOM's Delivery Requests - Orders and Receipts SOP.
All deliveries will be accompanied by a delivery request receipt. Information provided on a delivery request receipt may include
protected medical information. Information contained in a physician’s recommendation and received by MOM is deemed
“medical information” within the meaning of the Confidentiality of Medical Information Act and will not be disclosed except as
necessary. As such, access to such information will be restricted to essential employees, provided that access may be granted to
representatives of the Bureau and other government officials if necessary to perform their official duties.
Communication is done through a two-way radio or phone system of MOM's choice. The delivery driver will communicate with MOM
during the following stages of each delivery trip:
The time of arrival at a patient’s, caregiver’s, or adult-consumer’s physical address
If a customer’s credentials do not match the credentials provided by MOM
If the delivery driver deviates from pre-planned route
When the delivery driver has completed a delivery
When the delivery driver has gone 30 minutes with no new deliveries and begins the drive back to COMPANY
COMPANY is to communicate with the delivery driver about any new orders to be delivered during their trip. The responsible retail
employee will send the delivery request receipts electronically to the delivery driver.
While in the process of delivery, the delivery driver is not to engage in any activities outside of delivering orders or stray from the
delivery route except for fuel, vehicle repair, needed rest, or because the continued route is unsafe, impossible, or impracticable.
Needed rest differs from breaks; delivery drivers should not take any work breaks while in the process of making deliveries.
Policy Citations: CCR 16-42-3 5415 (2019) ; CCR 16-42-3 5415(d) (2019); CCR 16-42-3 5415(e) (2019); CCR 16-42-3 5415(f) (2019);
CCR 16-42-3 5416(a) (2019); CCR 16-42-3 5417(c) (2019); CCR 16-42-3 5417(d) (2019); CCR 16-42-3 5418(e) (2019); CCR 16-42-3
5418(f) (2019); CCR 16-42-3 5418(g) (2019); CCR 16-42-3 5418(h)(3)(i) (2019); CCR 16-42-3 5420(a) (2019); CCR 16-42-3
5420(a)(9) (2019); CCR 16-42-3 5421 (2019).
Purpose:
This document describes the procedures that must be followed when delivering cannabis goods to a patient, caregiver, or adult-
consumer, at his or her in-state physical address.
This SOP can be used to fill out the Bureau's Delivery Procedures Form (see the "Resources" section of this SOP for a link to the
form).
Scope:
Retail, Delivery
Employee Responsible:
Delivery Employee
Definitions:
n/a
Resources:
A copy of MOM's current license, delivery employee’s government-issued ID, delivery employee’s MOM issued employee ID badge,
the delivery request receipt associated with each respective delivery, the delivery inventory ledger, delivery incident log, mobile
identification card reader, mobile credit card reader, order lock box, money lock box, Delivery Procedures BCC Form
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RTL - Performing the Delivery
A.Securing Deliveries in the Vehicle Lock Box
1.Place delivery orders located in the outgoing deliveries area of the secure inventory storage room in the lock boxes,
with each lock box containing one or more order and organized in a way that facilitates delivery.
Best Practice
2.Carry the lock boxes to the delivery vehicle. If there are multiple lock boxes, use a wheeled device, such as a
platform cart, to move the lock boxes securely and safely from the storage room to the delivery vehicle through an
entryway not used by the public, ensuring lock boxes are supervised at all times.
CCR 16-42-3 5422(c) (2019)
3.Using the delivery inventory ledger, confirm that the quantity of cannabis goods in the vehicle at the time of
departing MOM is worth no more than $5,000, with no more than $3,000 worth of those cannabis goods being of
orders that have not yet been received and processed by MOM.
CCR 16-42-3 5418(a) (2019)
4.Secure the lock box(es) containing the cannabis goods and the money lock box in the windowless area in the back of
the vehicle where solid or locking metal petitions, cages, or high-strength shatterproof acrylic are used to create a
secure compartment.
CCR 16-42-3 5417(b) (2019)
B. Performing the Delivery
1. Verify that the retail employee who prepared the delivery orders created each delivery request receipt with the
required information, including:
MOM's name and the address of its licensed premises
The first name and employee number of the delivery employee who will deliver the order
The first name and employee number of the licensed retail employee(s) who prepared the order for delivery
The first name of the customer and a MOM-assigned customer number for the person who requested the
delivery
The date and time the delivery request was made
The delivery address
A detailed description of the cannabis goods requested for delivery. The description must include, at
minimum, the weight, volume, or any other accurate measure of the amount of cannabis goods requested
The total amount paid for the delivery, including taxes, fees, cannabis goods cost, and delivery charges
CCR 16-42-3 5418(g) (2019) CCR 16-42-3 5420(a)(1)-(9) (2019)
2. Confirm that the delivery inventory ledger created by the retail employee who prepared the delivery orders includes
the required information for each cannabis goods, including:
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The type of good
The brand
The retail value
UID
The weight, volume, or other measure of the product
CCR 16-42-3 5418(e) (2019)
3. Verify that all cannabis goods that have been prepared for an order that was received and processed prior to delivery
driver’s departure are identified on the delivery inventory ledger.
CCR 16-42-3 5418(e) (2019)
4. Make sure that you have a copy of all of the following on your person during delivery:
MOM's current retail license
Your government-issued identification
Delivery inventory ledger
The driving log
MOM employee badge containing your picture and name
CCR 16-42-3 5415(e)(2019)CCR 16-42-3 5418(g)(2019)CCR 16-42-3 5418(f)(2019)CCR 16-42-3 5418(e)(2019)
5. Prior to leaving for a scheduled delivery route, confirm that the two way radio equipment/communication system
used and the GPS device are operational, that you have access to the mapping service used (i.e., Google Maps), and
that you have the keys needed for unlocking all of the loaded lock boxes.
CCR 16-42-3 5417(d) (2019)
6. Using the mapping service (i.e., Google Maps), begin your delivery route by driving to the first delivery address.
Best Practice
7. When you are approximately five minutes away from the delivery destination, call the adult consumer, patient, or
caregiver and inform them you will be arriving soon.
Best Practice
8. At the moment of arrival, inform personnel at the retail store of your arrival at the delivery location, via radio or
phone.
Best Practice
9. Find the delivery request receipt (or electronic device providing access) and open the back of the delivery vehicle to
remove the lock box that contains the individual’s order. After removing the lock box, close and lock the vehicle.
CCR 16-42-3 5417(c) (2019)
10. Approach the individual's door and knock or ring the doorbell.
Best Practice
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11.Upon arrival at the customer’s door, display your MOM ID badge in plain view for verification to the qualifying
patient, personal caregiver, or adult consumer.
Best Practice
12.Use the MOM-issued mobile identification card reader to confirm the identity and age of each qualified registered
patient, caregiver, or adult consumer. When a customer's credentials don't match, immediately exit the premises,
return to the delivery vehicle, and communicate to personnel at the retail store via radio or phone of the incident.
CCR 16-42-3 5415(f) (2019)
13.After you've approved an individual's credentials, unlock the lock box and give the product to the individual. Best
Practice
14.After the product is in the possession of the individual, provide him/her with a copy of the delivery request receipt.
Add the date and time of the delivery to the receipt.
Note: The patient, caregiver, or adult consumer will verify the accuracy of the delivery request receipt, will initial
each line item on the invoice, then place their full signature at the bottom of the receipt to indicate receipt of the
merchandise.
CCR 16-42-3 5420(a)(9) (2019)
15.Take the individual's payment. If he or she chooses to pay with a debit card, present the mobile credit card reader.
Best Practice
16.Take the lock box back to the delivery vehicle and secure it inside. If the order was paid for with cash, put the cash in
the secured money lock box inside the delivery vehicle.
Best Practice
17.Notify MOM that delivery has been completed and update the delivery inventory ledger to reflect the current
inventory in the vehicle.
CCR 16-42-3 5418(e) (2019)
18.Verify that the phone/radio as well as GPS device are still operational before continuing the delivery route or
returning to the retail store.
CCR 16-42-3 5417(d) (2019)
19.In the event that the phone, radio, and/or GPS are not functioning properly, attempt to troubleshoot on your own. If
they are continuing to malfunction, return to MOM.
Best Practice
20.In the case that no requests are received in a 30-minute period, return to COMPANY using an approved randomized
route without making any stops. When you must deviate from the pre-planned route, call MOM and report any
changes and record those changes in the delivery incident log upon arrival.
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1.7 Cash Handling Procedures
Transportation of Cash from MOM to Financial Institution
Once per week or as needed, cash will be transferred from the licensed premise to MOM’s financial
institution. Cash to be transferred must be prepared by a manager, officer, or owner prior to deposit.
Cash being transferred for deposit will be recorded on the cash ledger and a transfer receipt will be
provided for recordkeeping. Cash deposits will be verified with MOM’s financial institution the following
day. MOM will use a secure licensed cash transportation service when transporting cash off site. MOM
in San Luis Obispo currently banks with North Coast Credit Union and will transport cash to their
receiving facility.
Cash Drawers and Staff Deposits
Daily, prior to opening for retail, each cash drawer will be stocked with change to an amount not to
exceed With six cash drawers in the retail space at any time, the maximum amount of starting
cash in the retail space is The designated manager will count and record the exact amount of
each cash drawer before an employee can access the cash drawer. The manager will put together the
change for the cash drawers using the small bills and coins from the previous days deposit envelopes
as well as a cash inventory for change that will be kept stocked. The manager should go to a
local bank for change for the cash inventory for change as needed. Sales employees will be
designated to a cash drawer and are responsible for its accuracy. Employees are required to notify a
manager when the cash drawer exceeds . Managers will transit funds in excess of to the
slot of the drop box safe located near the door of the secure storage room. These funds will be placed
in an envelope with the amount, the date and time, and the employee from whom the funds came
before being deposited in the drop box safe slot. Each employee will keep a written record of amounts
being given to managers to be submitted at the end of their shift. At the end of the employee’s shift, an
Assistant Manager must print a drawer report from Treez indicating the expected amount of the drawer,
and then count the cash drawer and the amount of drop deposits made for the day. The Assistant
Manager must then place all the cash from the cash drawer, along with their record of deposits and
Treez drawer report, in a cash deposit envelope. They must write on the exterior of the envelope the
total amount of cash in the envelope and the total amount of deposits. The Assistant Manager will then
report any discrepancies in Treez and on their cash deposit envelope. The employee must then deposit
their cash deposit envelope to the drop box safe.
The following day a General Manager (GM) will retrieve the deposits and verify them by counting
the cash and checking Treez. Discrepancies found will be reported to owners, disciplinary action or
investigation may be required. If criminal activity is discovered, it will be reported to the BCC and local
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law enforcement within 24 hours. The GM will then sign and date the envelopes. Completed deposit
envelopes will be kept in the GM’s safe in the secure storage room. Owners will then regularly collect
and audit the deposit envelopes from the GM’s safe before sorting cash. Cash may either be stored
onsite in a separate “owner’s safe” up to or deposited to the bank. Vendors/distributors are
paid by check, not by cash, for further cash handling safeguards.
1.8 Inventory Control Procedures
MOM will utilize Treez as the point-of-sale system for its retail storefront. Treez is fully integrated
with METRC track and trace software, and has robust inventory tracking and auditing functionalities.
Treez also ensures compliance with tax laws, verifies IDs and age using ID scanning, tracks
purchasing limits across all locations, and much more. Additional information about Treez can be
found at: https://treez.io
Dedicated Inventory Staff
For maximum inventory controls, MOM deploys strict separation of duties and has a dedicated
inventory team. This team is comprised of 1 Purchasing Manager, 1 Inventory Manager, 1 Lead
Inventory Associate and 4-5 Inventory Associates. The Inventory Manager reports directly to
the General Manager, and is responsible for all inventory related tasks, from intaking of vendor
deliveries, to storage, organization, restocking, tracking of expiring product, waste procedures,
and other related tasks.
Restricted Access to Inventory Areas
The facility is designed with a restricted access inventory intake room that has direct access to
the secure delivery bay, and secure storage room (vault). Only inventory staff members, upper
management, and owners are allowed in the inventory intake room, delivery bay, and secure
storage room (vault). Access to these areas is controlled using electronic keycards that are unique
to each individual. The electronic system has card readers at each door and instantaneously
determines whether the person attempting the gain access has the correct level of permissions,
and keeps an electronic log of all interactions. In addition, all inventory areas have full camera
coverage using advanced hybrid-cloud cameras by Verkada that deploy facial recognition to
easily identify individuals who may be in an area where they are no allowed. Floor staff are never
allowed into the inventory areas of the facility. The electronic keycard and camera systems are
randomly audited at least every 30 days by security personnel to identify any possible breaches.
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Inventory Records & Electronic Track and Trace System
MOM will maintain an accurate record of its inventory at all times using the track-and-trace software
Treez, which integrates with METRC. In the system, MOM will keep a record of the following information
for all cannabis products it has in its inventory: A name, type, and description of each item; The items
unique identifier; An accurate measurement of the weight or quantity of the product; The date and time
products were received from the distributor; Any sell-by or expiration date provided on the cannabis
products’ package; The name and license number of the distributor that delivered the cannabis products
to the retail premises; The price MOM paid for the cannabis products, including taxes, delivery costs,
and any other costs; All sales data related to products.
Treez and METRC will be used for all commercial cannabis activities, including: 1. Sale of Cannabis
Product; 2. Receipt of Wholesale Cannabis Product; 3. Return of Cannabis Product (both returns from
customers and returns to vendors); 4. Destruction and Disposal of Cannabis Product (Including the
name of the entity being used to collect and process cannabis waste and description for any adjustments
made in the track-and-trace system.); 5. Any other information as required pursuant to the State of
California regulations, or by any other applicable licensing authorities. - Unless otherwise specified, all
transactions must be entered into the track-and-trace system within 24 hours of occurrence. MOM will
enter and record complete and accurate information into the track-and-trace system, and will correct
any known errors entered into the track-and-trace system immediately upon discovery. MOM will review
its track-and-trace procedures quarterly to ensure that MOM remains compliant with any changes in
activities required to be recorded pursuant to the State of California regulations, or by any other licensing
authority.
Basic inventory management policies are as follows:
• Management verifies that all MOM retail employees are always:
1. Entering required data and information into METRC whether directly or via Treez. Policy
Citation: CCR 16-42-1 5049 (2019)
2. Documenting each day’s beginning inventory, acquisitions, sales, disbursements,
destruction and disposal of cannabis waste, and ending inventory in METRC.
3. Properly returning defective cannabis goods to the selling licensee.
• Reference MOM’s Performing Inventory Reconciliation SOP and all related reconciliation
records and confirm that inventory reconciliation is being performed every 30 days. Policy
Citation: CCR 16-42-1 5051 (2019) and CCR 16-42-3 5424 (2019)
• Using MOM’s Inventory Discrepancy SOP, confirm that all discrepancies in inventory, if any,
have been, and are continuing to be handled, in compliance with MOM’s policies and the
Bureau’s requirements. Policy Citation: CCR 16-42-3 5424(e) (2019) and CCR 16-42-1 5034
(2019)
• MOM has proper disaster relief procedures in place to ensure that MOM’s inventory will not
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be damaged in the event of a disaster using MOM’s Disaster Relief SOP. Policy Citation: CCR
16-42-1 5038(h) (2019)
• Keep all inventory records in a manner so that they’re readily available to the Bureau of
Cannabis Control or local officials at all times. Note: Copies of any documentation required by
the Bureau will be maintained for at least 7 years after the date of the event. Policy Citation:
CCR 16-42-1 5037 (2019)
Track-and-Trace Loss of Access Procedures
If at any point MOM loses access to the track-and-trace system for any reason, MOM’s managers will
prepare and maintain comprehensive records detailing all commercial cannabis activities that were
conducted during the loss of access. Management will both document and notify the Bureau of Cannabis
Control immediately when: 1. Access to the system is lost; 2. Access to the system is restored; and the
cause for the loss of access identified. - Once access is restored, all commercial cannabis activity that
occurred during the loss of access will be entered into the track-and-trace system within three business
days of access being restored. MOM will not transport, transfer or deliver any cannabis products until
such time as access is restored and all information recorded in the track-and-trace system.
Receiving Cannabis Inventory
Prior to placing a Purchase Order to acquire wholesale cannabis products, the Purchasing
Manager conduct thorough due diligence as discussed in Section A8 - Product Procurement and
Delivery Plan. As also discussed in that section, vendors are required to make an appointment to
deliver goods, and the delivery is conducted using a secure delivery bay. Shipments of cannabis
goods must be inspected for freshness and quality. Cannabis goods that have exceeded their
expiration or sell-by date may not be accepted. MOM will not engage in any packaging or labeling
of cannabis or cannabis products, and will not accept any cannabis or cannabis products from a
distributor that are not packaged for final sale. If a MOM employee discovers there is a defect or
non-conformity in an inventory shipment, they will refuse it.
MOM has a detailed SOP and set of checklists for processing the receipt of cannabis inventory
that include but are not limited to:
• Verifying the METRC manifest matches the count of items and METRC UIDs received.
• Verifying Certificates of Analysis match the batch numbers on the product labels.
• Verifying packaging and labeling are compliant.
• Accepting manifest in METRC and ensuring driver and MOM employee sign paper copies
that are retained, and electronically filed with the invoice.
• Following MOM SOP for importing inventory from METRC into Treez and printing barcode
labels.
After receiving cannabis inventory each product is affixed with a barcode label that corresponds
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to its product batch for tracking purposes. Inventory is then moved into the secure storage room
(vault) and organized by batch in inventory bins placed on commercial shelving units. The METRC
UID tag for each batch is affixed to the front of each bin.
Stocking Inventory to the Sales Floor
Using Treez all inventory is tracked by product batch and by “room”. MOM designates the sales
floor and the vault as separate rooms within the system to allow for easy spot check audits in either
location. Inventory must be transferred in Treez to the sales floor before physically moving the
product. Doing so is done using a handheld “NUG” device that scans the barcode of the product,
ensuring that the system transfers the correct batch of the product being moved. Inventory staff
periodically run reports throughout each day to determine which products need to be re-stocked
from the vault to the sales floor. Only inventory staff members are allowed to move inventory
between rooms.
Sales Recording Procedures
Using Treez, MOM will maintain an accurate record of sale for every sale made to a customer. A
record of a sale will contain the following information: 1. Name and employee number of the retail
employee who processed the sale; 2. Name of the customer and a retailer-assigned customer number
for the person who made the purchase; 3. Date and time of the transaction; 4. List of all the cannabis
products purchased, including the quantity purchased; 5. Total amount paid for the sale including the
individual prices paid for each cannabis product purchased and any amounts paid for taxes. Sales
data is reported to METRC in real time via an API connection. Additionally Treez has reporting tools to
identify any transactions that failed to report to METRC via the automatic API and MOM resolves those
items every 24 hours.
Inventory Reconciliation Procedures
In addition to random daily cycle counts, MOM will perform a full reconciliation of its inventory at least
once every 30 days. Inventory will be verified by a hand count performed by two or more individuals,
then matched to MOM’s inventory records using the handheld NUG devices. Any discrepancies
are investigated by the Inventory Manager and then recorded in Treez. The resulting report of any
discrepancies will then be uploaded to METRC and retained in MOM’s records. The report will be made
available to the Bureau of Cannabis Control or the City of Fresno upon request. If MOM identifies any
evidence of theft, diversion, or loss, or if a significant discrepancy is discovered, MOM will notify the
Bureau of Cannabis Control and local law enforcement. A significant discrepancy in inventory means
a difference in actual inventory compared to records pertaining to inventory of at least 3 percent of
the average monthly sales. For the purposes of this section, average monthly sales will be calculated
by taking a per month average of the total sales for the previous 6 months. If MOM has not been in
operation for at least 6 months, only the months in which the licensee was operating will be used in
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determining average monthly sales. For the purposes of this section, the MOM’s acquisition price will
be used to determine the value of cannabis products in its inventory.
At least every 30 days a system check is also performed that compares the records in Treez with those
in METRC to ensure the system’s data match.
Cannabis Recalls
MOM will promptly quarantine goods subject to a recall and immediately notify all customers who
purchased a recalled product. Returns will immediately be quarantined and all quarantined good will be
destroyed per MOM waste SOP. All actions will be recored in Treez and METRC.
Cannabis Product Disposal Procedures
No cannabis product will be disposed of as cannabis waste unless the cannabis products have been
removed from their packaging and rendered unrecognizable and unusable following MOM’s Cannabis
Waste SOP.
Cannabis Waste Management
MOM will not sell cannabis waste. MOM will comply with all applicable waste management laws
including, but not limited to, Division 30 of the Public Resources Code. MOM will dispose of cannabis
waste in a secured waste receptacle. For the purposes of this section, “secured waste receptacle”
means physical access to the receptacle or area is restricted to the licensee and its employees and
the waste hauler franchise or contracted local agency. Public access to the designated receptacle or
area is prohibited. If a local agency, or waste hauler franchised or contracted by a local agency, is being
used to collect and process cannabis waste, MOM will provide the Bureau of Cannabis Control with
necessary information (e.g name of local agency providing waste hauling services, company business
address, primary contact person, etc.). MOM will obtain documentation regarding the date and time of
waste collected at the licensed premises, obtain a copy of a certified waste weight ticket. If MOM utilizes
self-hauling of waste to be delivered to a licensed facility, only MOM or its employees are permitted to
handle self-hauled waste. A certified waste weight ticket will be obtained from the waste facility.
Employee Theft Reduction Methods
In addition to daily cycle counts and monthly full inventory audits, MOM deploys measures to reduce
incidents of employee theft. These include only allowing sales of products to employees during
designated times of day and requiring that a manger perform such transactions, and subjecting
employees to random bag searches by security personnel. MOM also has staff that engage in loss
prevention surveillance. All employees are subject to background checks.
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1.9 Preventing Unauthorized Access
MOM has strict policies and procedures that prevent the unauthorized access of cannabis products.
Many of these policies and procedures have been outlined in previous sections of this application.
A summary of key policies are:
• A secure lobby where ID is verified before customers are granted access to the sales floor.
• Strict visitor protocols that require signing in to a visitors log.
• Ample staff of the sales floor to assist and supervise customers.
• An advanced security camera system (Verkada) used for loss prevention monitoring.
• A dedicated inventory team creating separation of duties from floor staff.
• Strict vendor delivery procedures with an enclosed delivery bay.
• Storage of cannabis products in a secure vault.
• A policy to permanently ban any customer caught illegally selling cannabis products or
diverting product to minors.
• Strict destruction and waste procedures.
1.10 Compliance
Law Review
For each new venture MOM’s team throughly reviews all applicable law to ensure all aspect of the
business and the Standard Operating Procedures are compliant. This includes but is not limited
to California Business and Professions Code Division 10, California Code of Regulations Title 16
Division 42 and Fresno Municipal Code. In the event that any set of laws conflicts with one another
or has a discrepancy, MOM always defers to the more restrictive language or interpretation. The
MOM ownership team includes Mark Cardona, a licensed attorney.
Compliance Software
MOM has an over 10 year record of
compliant cannabis business operations.
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To assist with the review above, and to track compliance across the organization, MOM utilizes the
compliance software, Simplifya. This software holds records of all Standard Operating Procedures
with regulatory citations, assists with compliance audits that are conducted monthly, and documents
and tracks all licenses, permits, and other regulatory paperwork.
Full compliance audits using Simplifya are conducted at minimum every 30 days. Any issues
identified in the audits get flagged to the appropriate personnel and mitigation measures are
immediately implemented.
Any significant discrepancies in inventory, discovery of diversion or theft, loss of records or breach
of security are promptly noticed to the City and State within 24 hours.
Coordination with Law Enforcement and Regulatory Agencies
MOM takes pride in the deep and productive relationships that are forged with local law enforcement
and regulatory agencies. MOM’s Community Outreach Manager and all upper management
periodically invite local law enforcement to meetings to proactively address issues and implement
preventative measures. If any MOM business has proposed changes in the operation or in
ownership the proper authorities (City and/or State) are notified in advance for approval.
Compliance Training
MOM has extensive initial training for new employees that covers all aspects of compliance with
applicable laws and regulations. Employees are required to also participate in ongoing education
training. Examples of training schedules and materials can be found in the Employee Training
section on the following pages.
Internal Financial Audits
MOM also conducts periodic internal financial audits to ensure proper tax reporting and payments
and to ensure compliance with all applicable laws and regulations. MOM also has outside audits
conducted by a CPA firm yearly.
10+ Years of Tax Compliance
MOM’s various operations have always operated compliantly with regards to taxes since
inception, including sales taxes during Prop 215. MOM can provide any of the following upon
request: Seller’s Permits for Megan’s Organic Market (Delivery Service), MOM SLO LLC (San
Luis Obispo Retail Store), and Red Truck Management (San Luis Obispo County Cultivation,
historical financial statements, city & county cannabis tax filings, state sales tax filings, Federal
tax filings, business licenses, etc.
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Megan’s Organic Market (MOM) has always been committed to creating knowledgeable and highly
trained employees. Employee training begins during the interview and ends when the employee is
no longer employed. As the employee training is comprehensive and includes hundreds of slides,
numerous quizzes, as well as lengthy SOPs and training documents, this application will only
include examples from these documents so as to not exceed the 150 page limit.
MOM will only hire employees that have the education, training, and experience, or any combination
thereof, to enable them to perform all assigned retail functions. Employees will not be allowed to
report to work prior to receiving orientation training or when any required critical training is eight
weeks or more past due. MOM will employ one supervisor and one employee who have successfully
completed a Cal-OSHA 30-hour general industry outreach course offered by a training provider
that is authorized by an OSHA Training Institute Education Center to provide the course.
MOM’s general employee training includes:
• Employee Handbook and The Injury and Illness Prevention Program
• Conduct Standards and Discipline
• Discrimination, Harassment, and Violence
• Health, Safety and Emergency (including COVID-19 precautions)
• Corporate Communications and Technology Systems
• Retail Operation Procedures & Compliance
• Sanitation Procedures
• Local and State Law, Licensing and Enforcement & Violations
• Inventory Tracking and Management Regulations
• Waste Handling, Management, and Disposal
• Security and Surveillance Requirements
• Permitting Inspections by Enforcement Authorities
• Maintenance of Records
• Packaging and Labeling Requirements
In addition to general employee training, Megan’s Organic Market will provide supplemental
training to employees with specific and comprehensive job duties, as needed. Diversity is also
important to MOM, therefore MOM will host yearly training seminars for its employees with a goal
of identifying unconscious biases and reducing workplace discrimination. MOM also conducts
continual in-person and virtual product and brand training sessions.
1.11 Employee Training
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MOM will ensure that the assigned supervisory personnel, the Director of Human Resources
and the General Manager , have the education, training, experience, or combination thereof
necessary to train new employees. Additionally, MOM will ensure that all new personnel receive
all training described in the New and Annual Employee Training SOP and all personnel will receive
the annual refresher training. This annual refresher training will be completed within 12 months
of the previously recorded training completion date. Policy Citations: CCR 16-42-1 5031 (2019);
CCR 16-42-1 5048(b) (2019); CCR 16-42-1 5020(d)(8) (2019).
General Cannabis Training
General cannabis training includes the review of numerous slide presentations. Cannabis 101
covers differences in products including but not limited to edibles, topicals, vapables, concentrates,
flowers, hash, and sublinguals. Cannabis 101 also covers a discussion of potency and choosing
the right dose and product.
The next presentation presented is Cannabis Basics. Cannabis Basics is a guide to the plant
known as cannabis. It describes the various parts of the cannabis plant as well as an in depth
discussion of the various cannabinoids the plant produces and their various effects. Other
presentations for cannabis training include Cannabinoids and the Endocannabinoid System and
Cannabis Concentrates. In addition to these presentations, many product vendors have supplied
Megan’s Organic Market with educational materials for their specific products. These materials
are also reviewed as part of the training program. The following is a selection of vendor talking
points which contain key product information:
In addition to the educational material provided by vendors, MOM regularly hosts vendor training
days where representatives for the various products educate the staff to the unique appeal of their
products. Managers and supervisors will work to ensure that all staff can be as educated about
the products in the store as possible.
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Compliance and Legal Training
All MOM employees who will handle inventory will have to complete CCTT-Metrc training given
by MOM CCTT-Metrc Administrator(s). MOM Administrators will have attended and successfully
completed all required CCTT-Metrc training.
Several documents are used to provide training on compliance and legal. Some documents
are specific to the inventory team including the Inventory Intake SOP, Inventory Storage SOP,
Paperwork and Filing SOP, and Inventory Audit SOP. Other documents are specific to front of
house staff such as MOM’s SOP - Closing The Shop, MOM’s SOP - Opening The Shop, and
Accepting Identification SOP. Other documents apply to all staff such as Waste SOP, Handling
of Regulatory Inspections SOP, Readiness for Regulatory Inspection SOP, Health and Sanitation
SOP, and more. An example of text from one of these SOPs follows:
Customer Service Training and the Employee Handbook
The success of MOM is based on a seven year history of excellent customer service. Good customer
service begins at the hiring process. MOM looks to hire customer service professionals with resumes
demonstrating such. Employees will be further coached to use the correct terminology instead of
slang, they will be coached in their interactions, their appearance and hygiene, as well as their
behaviour. The core of this training comes from the MOM Employee Handbook. The handbook also
covers employment topics such as jury duty, breaks, vacation, sick pay, the customer experience,
harassment policies, drug and alcohol policies, and many more very important topics.
Health and Safety Training
The MOM Health and Safety Plan includes but is not limited to: Fire prevention, Robbery training
prevention, Emergency action plans developed for various emergency situations, Procedures to
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keep employees and the public safe from injury and illness, CPR and first-aid training for Safety
and Management Teams, Numerous proprietary security features, Safety Leadership, Employee
participation, Occupational hazard identification and control, Hazard communication plan, Personal
protective equipment assessment, and Program evaluation and improvement. The following text
from the Health and Safety Plan describes the burglary and robbery procedures:
Robbery: All incidents of theft must be reported to the BCC within 24 hours. In the event of a
robbery, employees are expected to remember and enact the 6 C’s as follows
1. Calm. If someone approaches you with the intention of robbing the store, stay calm. This will
certainly be easier said than done, but it’s critical to your safety. If you panic, the robber’s
adrenaline will rise even higher and could lead to tragedy.
2. Communicate. Listen to what the robber is asking you to do.
3. Cooperate. No one expects you to be a hero in a robbery. Your safety and the safety of
customers in the store is the number one priority. Give the robbers what they want in a way
that maximizes safety.
4. Close and call. As soon as the robbers leave the building, lock the door and call 9-1-1. Once
emergency personnel arrive, call your manager.
5. Control. Once you’re safe and the threat of robbery is over, take control of your emotions and
the surroundings. Do not conduct any business, and do not touch anything. If other customers
are in the store, ask for their patience while you wait for the police to arrive. Do not give out
any information, except to police and company management.
6. Confide. Being the victim of robbery is a traumatic experience that can be difficult to process.
Talk about your feelings. If you need help, talk to a manager or your doctor.
Burglary: If a burglary has been identified to have occurred the following steps should take place:
1. Ensure that the burglary is not in progress and that the site is safe
2. Preserve and secure the crime scene
3. Call local law enforcement
4. Save any relevant security footage
5. Cooperate with officials
6. Report the incident to the BCC and any other entities required by law.
The following text from the Health and Safety Plan identifies other hazards of the cannabis
business:
Occupational Hazard Identification
Occupational hazards for budtenders and administrators include: Sensitizers/allergens,
Ergonomics, Workplace violence, and Disinfectants/cleaning chemicals.
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The following text from the Health and Safety Plan is an example of a control plan addressing one
of the cannabis business hazards identified above:
Disinfectants/Cleaning Chemicals Control Plan
• Proper ventilation is required whenever using chemicals.
• Choose safer cleaning chemicals that meet the cleaning/disinfecting needs.
• Ensure Safety Data Sheets (SDS) are provided and cleaning chemicals are labeled to identify
their contents and hazards per hazard communication standards.
• Warn employees not to mix cleaning products that contain bleach and ammonia.
• Ensure workers know which chemicals must be diluted and how to correctly dilute the cleaners
they are using.
• Provide training on the use, storage, and emergency spill procedures for cleaning chemicals.
• Operate ventilation systems as needed during cleaning tasks to allow sufficient airflow and
prevent buildup to hazardous vapors.
• Review PPE needed such as gloves and goggles.
• Provide areas where employees can wash up after using cleaning chemicals.
Employee Comprehension & Testing
Throughout the training and the employment of the employee, quizzes and testing will be required
along the way in order to demonstrate the employee’s comprehension. Documents such as
Compliance Quiz, Cannabis Basics Quiz, Recycling and Government Quiz, and Health and Safety
Quiz are just some examples of how employees are evaluated throughout their employment.
Examples of these documents are as follows:
Summary
The above narrative and examples are less than a percent of the total texts that support the MOM
training program. Although, due to page restrictions, MOM is unable to provide the complete
training program, the narrative and examples above successfully demonstrate the comprehensive
nature of the program.
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Since its formation in 2013, MOM has maintained compliance with State and local messaging guidelines
in all of its advertising and marketing activities. MOM will continue to ensure that its marketing strategy
emphasizes strict compliance with all standards, including Business and Professions Code (BPC); div.
10. Cannabis; Ch. 15. Advertising and Marketing Restrictions [26150 - 26156].
MOM’s commitment to preventing the diversion of Adult-Use cannabis to minors begins with a
marketing strategy that ensures only adult audiences are targeted. Prior to publishing any digital or
print advertisements, MOM will review audience demographics to ensure a minimum 71.6 % of the
audience is over the age of 21. (BPC 26151-B) Prior to any advertising or marketing from the licensee
involving direct, individualized communication or dialogue, MOM will use age affirmation to verify that
the recipient is 21 years of age or older. MOMs website includes an “age gate” requiring users to verify
that they are 21 or older in order to proceed and access the full site.
All product packaging and labeling will comply with State and local regulations. No products, advertising,
or branding will be attractive to children. This includes avoiding use of cartoons and other images
popularly used to advertise to children, imitating candy labeling, and using the words “candy” or
“candies” anywhere labels (BPC 26151-C).
Comprehensive Strategic Communication Plan
MOM’s Comprehensive Strategic Communications Plan to ensure successful integration of the proposed
commercial cannabis retail project into Fresno includes the following areas of focus:
Dedicated Community Liaison
MOM will designate a Community Liaison for the proposed retail project that can be reached by phone,
email, snail mail, or in person to address questions and concerns as they arise from community members
or City personnel.
Community Engagement and Local Involvement
To start off on the right foot, MOM commits to sending Letters of Introduction to businesses and residents
within 500ft of the proposed location, which will include contact information for MOM’s designated
Community Liaison.
MOM will further engage with the Fresno community through several initiatives, which are detailed
1.12 Communication & Marketing
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in Section 7 of this application. These initiatives include: creating a partnership with local non-profits
to contribute company-sponsored service hours, monetary donations, and the hosting of food drives;
opening our space for Chamber of Commerce and other business community events; establishing
a Community Fund, with the commitment of contributing 1% (a projected $200,000 annual total) of
MOM’s gross sales to supply the fund; establishing a Community Advisory Board to oversee distribution
of the Community Fund; contributing a minimum of 50 company-sponsored service hours to support
local nonprofits and other organizations or efforts that directly benefit community and its residents
(highway cleanups, resource conservation efforts, farm worker support services, and more); and
organizing quarterly community meetings & seminars with interested residents and business owners in
the surrounding in order to address neighbor concerns, build better relationships with the community,
and give residents an opportunity to ask questions regarding cannabis.
Demonstrated Compliance With State and Local Regulations
MOM is familiar with all cannabis advertising regulations and guidelines, operates its other dispensaries
in compliance with state and local guidelines, and will operate the Fresno dispensary in compliance
with these guidelines. The guidelines that MOM will comply with, as they pertain to communication and
marketing, include:
• All advertisements and marketing shall accurately and legibly identify the licensee responsible for
its content, by adding, at a minimum, the licensee’s license number (B&P §26151(a)(1)).
• Any advertising or marketing placed in broadcast, cable, radio, print, and digital communications
shall only be displayed where at least 71.6 percent of the audience is reasonably expected to be
21 years of age or older, as determined by reliable, up-to-date audience composition data (B&P
§26151(b)). Further, the licensee shall only display such advertising after a licensee has obtained
reliable up-to-date audience composition data demonstrating compliance with this requirement
(BCC § 5040(a)(1)).
• Any advertising or marketing involving direct, individualized communication or dialogue controlled
by the licensee (including in-person, telephone, physical mail, or electronic advertising) shall utilize
a method of age affirmation to verify that the recipient is 21 years of age or older before engaging
in that communication or dialogue controlled by the licensee. For purposes of this section, that
method of age affirmation may include user confirmation, birth date disclosure, or other similar
registration method (B&P §26151(c)). Further, a licensee shall use a method of age affirmation
before having a potential customer added to a mailing list (email, text, etc), subscribe, or otherwise
consent to receiving direct, individualized communication or dialogue controlled by a licensee.
(BCC § 5041(d)).
• All advertising shall be truthful and appropriately substantiated (B&P §26151(d))
• MOM shall not publish or disseminate advertising or marketing containing any statement concerning
a brand or product that is inconsistent with any statement on the labeling thereof (B&P §26152(b)).
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• MOM shall not publish or disseminate advertising or marketing containing any statement, design,
device, or representation which tends to create the impression that the cannabis originated in a
particular place or region, unless the label of the advertised product bears an appellation of origin,
and such appellation of origin appears in the advertisement (B&P §26152(c)).
• All outdoor signs and billboards used for commercial cannabis advertising must be affixed to a
building or permanent structure and comply with the provisions of the Outdoor Advertising Act,
commencing with section 5200 of the Business and Professions Code, if applicable (BCC § 5040(b)).
A licensee shall not advertise or market on a billboard or similar advertising device located on an
Interstate Highway or on a State Highway which crosses the California border (B&P §26152(d)).
The California Bureau of Cannabis Control has made a determination that billboards located on
interstate highways at least 15 miles from state borders is permitted and satisfies the intent of B&P
§26152(d), provided that the billboard is not within 1,000 feet of a day care center, school providing
instruction in kindergarten or any grades 1 to 12, inclusive, playground, or youth center.
• MOM shall not advertise or market cannabis or cannabis products in a manner intended to encourage
persons under 21 years of age to consume cannabis or cannabis products (B&P §26152(e)), and a
licensee shall not publish or disseminate advertising or marketing that is attractive to children (B&P
§26152(f)), and shall not contain the use of objects, such as toys, inflatables, movie characters,
cartoon characters, or include any other display, depiction, or image designed in any manner likely
to be appealing to minors or anyone under 21 years of age (BCC § 5040(a)(3)).
• MOM shall not use any depictions or images of minors or anyone under 21 years of age (BCC §
5040(a)(2)).
• MOM shall not advertise or market cannabis or cannabis products on an advertising sign within
1,000 feet of a day care center, school providing instruction in kindergarten or any grades 1 to
12, inclusive, playground, or youth center. (B&P §26152(g)) *This provision does not apply to the
placement of advertising signs inside a licensed premises and which are not visible by normal
unaided vision from a public place, provided that such advertising signs do not advertise cannabis
or cannabis products in a manner intended to encourage persons under 21 years of age to consume
cannabis or cannabis products.
• MOM shall not publish or disseminate advertising or marketing while the licensee’s license is
suspended (B&P §26152(h)).
• A licensee shall not give away any amount of cannabis or cannabis products, or any cannabis
accessories, as part of a business promotion or other commercial activity. For purposes of this
section, the donation of cannabis or cannabis products by a licensee to a patient or the primary
caregiver of a patient, pursuant to Section 26071, shall not be considered a business promotion
or other commercial activity (B&P §26153). Further, a licensee shall not advertise free cannabis
goods or giveaways of any type of products, including non-cannabis products, this includes a
prohibition on contests, sweepstakes, or raffles (BCC § 5040(a)(4)). Cannabis businesses may sell
products to customers for $0.01.
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• MOM shall not include on the label of any cannabis or cannabis product or publish or disseminate
advertising or marketing containing any health-related statement that is untrue in any particular
manner or tends to create a misleading impression as to the effects on health of cannabis
consumption. (B&P §26154)
• MOM shall not sell or transport cannabis goods that are labeled as beer, wine, liquor, spirits, or
any other term that may create a misleading impression that the product is an alcoholic beverage
(BCC § 5040.1).
• If MOM wishes to sell branded merchandise that is not listed here: clothing, hats, pencils, pens,
keychains, mugs, water bottles, beverage glasses, notepads, lanyards, with the name or logo of
a commercial cannabis business, MOM must receive written approval from the California Bureau
of Cannabis Control (BCC § 5041.1). MOM shall not sell the merchandise until receiving written
approval from the Bureau for the specific item of branded merchandise.
In addition to the above state regulations, MOM will implement additional restrictions when it comes
to communicating and marketing its products. Exterior signage will not contain images associated
with cannabis (e.g. pot leaves, joints, pipes, etc.), no cannabis products will be visible from storefront
windows, and no marketing materials will be displayed on the exterior of the building or in exterior-
facing windows.
Example Instagram marketing posts from MOM San Luis Obispo:
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1.13 Diversity & Gender Parity
Diversity & Inclusion
MOM will make special efforts to achieve high levels of diversity and gender parity
among its staff (and pay rates), and to provide a welcoming retail environment for all
customers regardless of race, gender, sexual orientation, etc. MOM’s hiring managers
will use inclusive hiring practices designed to reduce discrimination. MOM will host
yearly training seminars for its employees with a goal of identifying unconscious biases
and reducing workplace discrimination. MOM will also provide scheduling flexibility to
those with young children.
1.14 Environmental Commitments
• MOM strives to minimize its carbon footprint
• MOM will install solar panels with a goal of producing enough
energy to achieve net zero energy consumption
• MOM has applied for Green Business Certification through the
CA Green Business Network, and commits to achieving full
certification.
• MOM will install three electric vehicle charging stations in its
parking lot
• MOM will install energy efficient appliances throughout its
building
• MOM employees will be rewarded for biking/walking to work
• MOM will install a bike rack in its parking lot area
• MOM will utilize green building practices during construction
and achieve LEED certification
City of Fresno
Commercial Cannabis Business Permit Application
Storefront Retail (Adult-use and Medical)
December 2, 2020
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01. Business Operations Plan
Improving the
health of our
community with
access to quality
cannabis.
This section provides a complete overview of the Megan’s Organic
Market proposal for Fresno.
1.
BUSINESS PLAN
KEY TAKEAWAYS
Trusted Cannabis Operators (7+ Years)
A Wholesome Brand that Resonates with a Broad Demographic
Significant Revitalization of a Vacant Blighted Building
A Team Who Values the Environment and Community
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Executive Summary
The Megan’s Organic Market team
is pleased to submit this application
and looks forward to becoming one
of the first retail cannabis storefronts
in the City of Fresno.
Officially called MOM FR LLC, dba
Megan’s Organic Market (MOM), we
are a California limited liability company, 95% owned by MOM USA LLC, which in
turn is owned by Megan Souza, Allison Borges, and Mark Cardona. This application
seeks approval from the City to operate a cannabis retail shop at 851 East Fern Ave,
Fresno, CA 93728. Accordingly, team MOM respectfully submits this application for a
Cannabis Retail Storefront Permit (the “Permit Application”).
MOM and its owners are a thoughtfully assembled team of experienced professionals
who share a genuine commitment of community building and service, and a desire to
provide patients and customers with access to quality products. We are experienced
and knowledgeable in our trade, excited about what this new industry will bring to
Fresno, and appreciate the opportunity to present this application for consideration.
We believe our planned project will improve the surrounding community, and our
team of best-in-class business owners is prepared to open and operate a truly
exemplary cannabis retail shop. As you will see in reviewing our application, our
venture meets—and exceeds—all criteria specified in the City’s cannabis ordinance,
regulations and beyond.
Megan’s Organic Market was originally founded in 2010 by Megan Souza and Eric
Powers as a medical cannabis cultivation operation and later a Prop. 215 medical
cannabis delivery service. For years, MOM delivery service worked hard to improve
the health of residents by providing safe and reliable access to quality organic medical
cannabis. With its iconic, apron-clad staff delivering the best customer service in
the industry, MOM quickly became one of the most respected Prop. 215 cannabis
collectives in California.
Today, after adult-use legalization, MOM’s 2-acre cultivation site is the largest
licensed cannabis operation in the County of San Luis Obispo, with another 3-acres
currently nearing the end of the Land Use Permit process. MOM also operates the
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first adult-use and medical cannabis retail storefront in the City of San Luis Obispo.
Now, MOM hopes to bring it’s unique and wholesome retail experience to Fresno.
MOM’s mission is to “make cannabis wholesome” and it does this through commitments
to community, stewardship, and education. Community involvement has been a
central part of MOM’s company culture since its founding, and will continue to be
a priority with the proposed Fresno location. From adopting a two-mile stretch of
roadway, to sponsoring community workshops, blood drives, and homeless dinners,
and even hosting a local educational radio show, MOM has an exemplary track
record of responsible community stewardship. Additionally, the owners’ commitment
to community development has led them to serve on multiple nonprofit boards and
commissions including the City of SLO Human Relations Commission, Morro Bay
Neighborhood Watch, Central Coast Cannabis Council, and the Cal Poly Hemp
Business Advisory Group.
The knowledge and experience the MOM team has accumulated through their
entrepreneurial cannabis projects provides the management skills that will guarantee
success. Their extensive commercial cannabis cultivation, retail delivery, and retail
storefront experience can offer Fresno a world-class cannabis retail establishment.
A solid track record of tax compliance, community involvement, and social &
environmental stewardship, make MOM and the Fresno, a perfect match.
The details of our proposal are outlined in the following application and we hope to
work alongside the City as we embark on this new venture. Thank you for your time
and consideration!
Sincerely,
Team MOM
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Megan’s Organic Market is on a mission to
redefine society’s relationship with cannabis
through responsible stewardship. We’re
continually seeking market opportunities
to improve the health of others, and our
community, through education, awareness,
and access to sustainable, high-quality
cannabis products.
Our Mission
Tagline: Making Cannabis Wholesome
Our Values
Making the world a better
place starts with the
community we live in. MOM
is dedicated to charitable
causes and doing good.
Community
MOM is committed to a
high level of corporate
responsibility, setting a
standard for this new and
emerging industry.
Stewardship
Business and the
community benefit from a
more educated world. MOM
strives to spread knowledge
and understanding.
Education
Based on our values, MOM makes decisions holistically, considering the impacts to
the community and the environment in addition to profit.
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We will change society’s negative perceptions of cannabis use, cannabis users, and cannabis
industry workers by embodying wholesomeness. Our employees, products, store design, client
experience, brand aesthetic, marketing campaigns, everything must reflect our commitment to
wholesomeness, breaking stereotypes - cultivating trust - leading with heart.
• our employees are chosen for their personal character, passion for helping others, and history
of community involvement
• our products are chosen for their quality, safety, efficacy, and sustainability
• our reputation comes from maintaining and building our client’s trust
Wholesomeness
We strive for the total thriving of our organization and all the members within it.
• we promote from within
• we invest in our employees
• we care about work-life balance
Positive Holistic Growth
Operation Details
Overview
MOM proposes a medical & adult-use cannabis retail storefront at 851 East Fern Ave, Fresno,
CA 93728, APN: 451-264-04, Zoned: CMS. The vacant and blighted property consists of multiple
adjacent commercial spaces and a dirt lot at the corner of E. Fern Ave and N. Maroa Ave. Associated
addresses are: 851, 855, 857, and 861 E. Fern Street. The combined units total approximately
4,464 square feet of retail space and the site has historical heritage that MOM seeks to revitalize.
A complete overhaul of the property is proposed, including but not limited to:
• Complete facade rehabilitation and major interior renovations
• Visual blight removal
• Beautifying the property through drought tolerant landscaping and wall climbing vines
• Creation of a new parking lot with 17 spaces
• A Net Zero Energy project through solar and energy efficient fixtures
• Three electric vehicle car chargers (including 1 Tesla charger) and a bike rack
• “Dark sky” compliant exterior lighting
• Rain water recapture system
• LEED certification
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Before After
The project will be an upscale, world-class cannabis retail facility that fits in seamlessly with the
community. With commitments to Net Zero Energy, electric vehicle chargers, a bike rack, LED
lighting, drought tolerant landscaping, and rainwater recapture, this project is also in alignment with
Fresno’s environmental commitments. Further, MOM’s proposal would actually decrease impacts
on the community by removing a blighted property that has consistently attracted criminal activity
and for years has burdened law enforcement. MOM’s complete renovation and the installation
of advanced security equipment will decrease crime and beautify the area, making it an ideal
location for a cannabis retail storefront.
The facility plans coupled with MOM’s extensive experience and wholesome brand provide for an
unmatched customer experience that is emblematic of Fresno’s high standards.
Conceptual Interior Rendering
1-10
1.1 Owner Qualifications
MOM is a highly experienced team in both cannabis and general business.
MOM FR LLC is 97% owned by MOM USA LLC, which in turn is owned 65% by Megan Souza, 30%
by Allison Borges, and 5% by Mark Cardona. MOM FR LLC is 3% owned by Catalyst Consulting &
Acquisitions, Inc. which in turn is owned 50% by William Skinner and 50% Tyler Skinner. Pursuant
to Fresno municipal code “an individual who will be participating in the direction, control, or
management” is also defined as an owner. Therefore MOM Vice-President Eric Powers, COO
Nick Andre, and CMO Tarrah Graves are also listed in this section.
MOM FR LLC Shareholder Breakdown
MOM USA LLC 97%
Catalyst Consulting
& Acquisitions, Inc.
3%93.65% Women Owned.
MOM’s San Luis Obispo Cannabis Retail Storefront
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Megan’s Organic Market
Family of Companies
Megan’s MarketsFamily of CompaniesCommercial
Cannabis
Operations
Commercial Hemp
Operations
American Pastoral LLC
Cannabis Retail
MOM SLO LLC
American Pastoral
Hemp Product Line
Megan’s CBD Market
Morro Bay
Hemp Retail Storefront
Megan’s Organic Market San
Luis Obispo
Cannabis Storefront Dispensary
2-Acres Clark Valley
Los Osos, CA
Cannabis Cultivation
Red Truck Management LLC
3-Acres Carrizo
Santa Margarita, CA (Pending)
Good Botany
Hemp Product Line
Powers Labs
Hemp Product Line
Megan’s Markets
Hemp Product Line
The owners of MOM have extensive compliant cannabis experience in retail and cultivation with
no history of state or local violations. Megan Souza & Eric Powers are the owners of San Luis
Obispo’s first cannabis storefront, Megan’s Organic Market (MOM SLO LLC), which is on track
to do in sales in its first 12 month period. They also own Red Truck Management
LLC which owns and operates an approximately 2 acre, fully licensed, outdoor cultivation site in
Los Osos, CA. Another 3 acre site in Santa Margarita is nearing the end of the permitting process.
Prior to that they cultivated cannabis under Prop 215 from 2010-2018 in Cayucos, CA and Los
Osos, CA, and ran the popular Megan’s Organic Market medical delivery service from 2013-2018,
which served over 3,000 registered Central Coast patients. Megan’s Organic Market delivery
service has a long history of tax compliance, paying proper sales tax returns since its inception.
Copies of historical returns can be provided upon request. Megan and Eric’s Prop 215 operations
then transitioned to the adult-use entities that operate today. To learn more about the Megan’s
Organic Market story view this short video: https://youtu.be/4bgPISef0cc. See the table on the
following pages for a list of state licenses previously and currently held.
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State License List
Description Location License Type License #
MOM SLO, LLC - Megan
Souza & Eric Powers
280 Higuera St, San
Luis Obispo, CA
BCC Type 10 Adult-
Use & Medicinal -
Retailer
C10-
0000728-
LIC
Red Truck Management
LLC - Eric Powers
2979 Clark Valley Rd,
San Luis Obispo, CA
(Los Osos)
Provisional
Cultivation - Medium
Outdoor
CCL20-
0000232
Red Truck Management
LLC - Eric Powers
2979 Clark Valley Rd,
San Luis Obispo, CA
(Los Osos)
Provisional Cultiva-
tion - Small Outdoor
CCL20-
0000389
Red Truck Management
LLC - Eric Powers
2979 Clark Valley Rd,
San Luis Obispo, CA
(Los Osos)
Provisional Cultiva-
tion - Small Outdoor
CCL20-
0000390
Red Truck Management
LLC - Eric Powers
2979 Clark Valley Rd,
San Luis Obispo, CA
(Los Osos)
Provisional Cultiva-
tion - Small Outdoor
CCL20-
0000391
Red Truck Management
LLC - Eric Powers
2979 Clark Valley Rd,
San Luis Obispo, CA
(Los Osos)
Provisional Cultiva-
tion - Small Outdoor
CCL20-
0000392
Red Truck Management
LLC - Eric Powers
2979 Clark Valley Rd,
San Luis Obispo, CA
(Los Osos)
Provisional Cultiva-
tion - Small Outdoor
CCL20-
0000393
Red Truck Management
LLC - Eric Powers
2979 Clark Valley Rd,
San Luis Obispo, CA
(Los Osos)
Provisional Cultiva-
tion - Small Mixed
Light Tier 1
PAL19-
0001238
Red Truck Management
LLC - Eric Powers
2979 Clark Valley Rd,
San Luis Obispo, CA
(Los Osos)
Provisional Cultiva-
tion - Small Mixed
Light Tier 1
CCL19-
0001238
Red Truck Management
LLC - Eric Powers
2979 Clark Valley Rd,
San Luis Obispo, CA
(Los Osos)
Temporary Cultiva-
tion - Small Outdoor
TAL18-
0010012
MOM’s San Luis Obispo Cannabis Retail Storefront
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Megan Souza is CEO of Megan’s Organic
Market, which opened in 2010 as a Prop. 215
medical marijuana supplier. Megan attended
UC Santa Cruz, and Cal Poly SLO for grad
school. She holds a Bachelor of Arts degree in
philosophy from UC Santa Cruz.
Megan and partner Eric Powers worked double
shifts as servers at restaurants to fund their
first medium-scale indoor grow in Cayucos,
CA starting in 2010. With the harvest, they
supplied a small collective of local medical
patients. Slowly, their patient list grew and the
size of their cultivation along with it. In 2016,
they moved to a farm in Los Osos, CA so they
could expand and grow outdoors. Their farm is
in Clark Valley, with an agreeable microclimate,
rich native soil and a bountiful well.
As their collective grew and they supplied more
and more patients’ medical cannabis needs,
the need for local advocacy for cannabis users
became apparent. So they hosted educational
campaigns and events, made a free medicine
program for patients in need, and used their
large patient base as a means to scale up the
small community service projects they did in
their spare time. They serve on the boards
of several local non-profits. Megan hosts an
educational cannabis+hemp radio show, they
conduct monthly highway cleanups of their
adopted 2-mile stretch of Hwy 1, volunteer
as election poll workers and candidate forum
workers, organize and host blood drives, and
donate to KCBX public radio and other local
non-profits that help the community. Megan is
also a member of the National Association of
Women Business Owners and participates in
various chambers of commerce, among many
other endeavors. She is also a Commissioner
on the Human Relations Commission for the
City of SLO.
Megan’s cultivation has transitioned to the
adult-use market and her state licensed Los
Osos farm is currently the largest cannabis
cultivation operation in the county with full land
use approval.
Megan’s success also led her to win first place
in the City of San Luis Obispo’s cannabis
storefront retail permit process. Today, Megan’s
Organic Market cannabis retail store is the
city’s first operational dispensary. The San
Luis Obispo store has been highly successful
and is experiencing rapid week-over-week
growth in sales. To learn more about Megan’s
story view this short video:
https://youtu.be/4bgPISef0cc
Megan Souza, President & CEO
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Eric has six years of cannabis retail experience and
ten years of cannabis cultivation experience. Since
2010, Eric has been cultivating cannabis in San Luis
Obispo County, which was distributed to more than
3,000 registered local patients through the medical
delivery service he co-founded with Megan Souza,
Megan’s Organic Market.
Eric Powers, Vice-President
Along with Megan, Eric also co-owns Red Truck Management LLC, which possesses
Cannabis Cultivation Permits from the California Department of Food and Agriculture
for outdoor cultivation in Los Osos, CA. Red Truck Management LLC also has a
3-acre outdoor cultivation site in Santa Margarita, CA awaiting final approval, and
he is an owner in MOM’s San Luis Obispo cannabis retail storefront. Further, Eric
serves as treasurer of the Board of Directors for the Morro Bay Neighborhood Watch
Association, and is a passionate advocate for sustainable agriculture.
Mark is an attorney at Cardona Law in downtown
Santa Barbara and is the longtime legal advisor
for Megan’s Organic Market. He is an expert in
cannabis law having worked with many cannabis
clients going back to when Prop 215 was in effect.
He has a long history of community involvement
including serving on the Board of Directors of the
Santa Barbara Public Library Foundation and the
New Beginnings Counseling Center, and working with the Legal Aid Foundation of
Santa Barbara County. Mark is a graduate of UC Santa Barbara and the University of
La Verne College of Law. This November, he and his wife became the proud parents
of their second child, Rainn Cardona.
Mark Cardona, General Counsel
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Nick Andre has recently joined the MOM team
after working as Chief Operating Officer of a multi-
location cannabis retailer in California. While there
he oversaw business development, processes, IT
systems, and overall operations for the company.
Nick also led the company’s implementation of
METRC, CA’s Track-and-Trace system. During
Nick’s time there he helped grow the company from
Nick Andre, COO
a single retail license to five throughout California.
Prior to that, Nick was founder and CEO of Kumani Inc, a San Luis Obispo based IT
company that specialized in e-commerce and cloud business systems implementation
for 8 years. Nick also worked for the Cal Poly Small Business Development Center
where he advised and assisted local small businesses with economic development
and job creation.
Additionally, Nick is also an Executive Board member of the CA Democratic Party
and has deep experience in government relations and policy.
In that past he worked in the accounting industry and for the toy company Hasbro,
Inc. He holds a Bachelor’s degree in business administration with a concentration in
accounting from the University of Rhode Island.
Allison is an educator turned cannabis advocate
after finding relief from medical aliments through
cannabis’s non-psychoactive compounds. As
part of the MOM team Allison is leading efforts to
bring education and awareness around medically
formulated products that have no mind altering
effects for those suffering from inflammatory
diseases like rheumatoid arthritis.
Allison holds a CA Teaching Credential from California State University, Fresno and a
Bachelor’s degree in Spanish Language and Literature from the University of Rhode
Island.
Allison Borges, Owner
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Tarrah Graves initially brought her experience, creativity,
and fresh ideas to the MOM team, helping the group
apply for and win the first retail permit in the city of San
Luis Obispo.
Tarrah studied Marketing & Public Relations at Cal Poly
and began her career in cause-marketing, working with
Tarrah Graves, Chief Marketing Officer
large non-profits including Unicef, Points of Light, American Heart Association,
SPCA, and more. Her work then expanded to creating digital campaigns for a variety
of national and worldwide brands including National Geographic, Equinox, LG, Got
Milk, P&G, Kimberly-Clark, and Unilever.
After marrying and starting her family, Tarrah transitioned away from the corporate
arena, and began working with local organizations to create and execute fundraising
campaigns and grow their creative and digital presence.
As Creative Director for MOM, Tarrah has enjoyed telling the Megan’s story - especially
because its commitment to education, social justice, environmental stewardship,
and its mission to de-stigmatize the cannabis industry, all align so closely with her
own values.
Tarrah has seen many close friends and family members benefit from having access
to high-quality cannabis products, and is excited about the prospect of Megan’s
opening a storefront in Fresno so that even more people can access the powerful
benefits of cannabis.
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Tyler is founder of Connected Communities LLC and is
serves on the board for NAWBO-National Association
of Women Business owners as the Corporate Partner
Chair.
Tyler is a Cal Poly Alumni and has over 10 years’
experience in project management, marketing, public
Tyler Skinner, Owner
relations/community outreach, and non-profit organizations. While at Cal Poly
SLO, Tyler studied abroad in Madrid, Spain and engaged in both teaching English
to business executives and international business ventures. She is now fluent in
the Spanish language and loves the opportunity to foster connection through her
love of language and cultures. She believes having diverse connections, enhance
opportunities and experiences.
Tyler started her own company Connected Communities LLC in 2018. The purpose of
her business is to connect people, businesses, and organizations to their community
in a fun, engaging, and memorable way. She has a strong passion for creative
marketing, fundraising, event design & management, and strategic connections that
add value to a variety of entities. She enjoys working on large scale projects with
multiple management needs and her clients include sporting events, film festivals,
corporations, and small business owners. Apart from being a lover of life, travel, a
good meal, inspiring others and impromptu dance parties, Tyler is a risk taker and
loves a variety of challenges.
My vision is to unite communities everywhere by showing individuals and organizations
how they can work together in unique ways for increased impact.
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William “Bill” Skinner grew up in the great Central Valley of California
and attended schools in his hometown of Madera. Following Madera
High School Bill matriculated at California State University Fresno
graduating with a BA Political Science and a MA in Applied Anthropology
(specializing in man and his constructed/built environment). While at
CSU Fresno Bill joined Sigma Nu Fraternity – Zeta Kappa Chapter
(1988) holding several officer positions including receiving Alumni of
William Skinner, Owner
the Year (1995). Bill is also a member of the Scottish Rite (raised in 2002) holding the rank of 32nd
Degree Master Mason.
Bill has over 30+ years of a combination of governmental service and private governmental
consulting experience.
During his tenure in the public sector, Bill held positions in numerous municipal governmental
agencies at the Director/Manager level including; Community Development, Development Services
(building, planning, engineering, environmental health) Redevelopment, Economic Development,
Public Works Director, Assistant City Manager (Public Safety and Development Services) and
concluded his public government sector as City Manager (at the time one of the youngest in the
State).
Following exiting governmental service, Bill formed Catalyst Consulting & Acquisitions as a boutique
multiple disciplinary firm specializing in comprehensive management of large development projects
(2,000 acres plus specific plan developments, natural resources extractions, water/recycled water/
wastewater systems, hotel/resort development). Catalyst worked on the High-Speed Rail Project
as a special consultant for local government relations and property acquisition in the Central
Valley. Recently, Catalyst has entered into the Cannabis permitting arena for both cultivation/
processing sites and retail dispensaries. In addition to the permitting services, Catalyst provides
client assistance for acquisition of projects/developments and properties through fiscal and land
use cost benefit analysis.
Catalyst has three (3) offices, Pismo Beach on the Central California Coast, Madera in the Central
Valley of California (according the State Office of Planning and Research the highest growth
area in the State) and on the Big Island of Hawaii (hotel/resort/water/wastewater and legacy
development of retired plantations on the Kona side of the island).
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1.2 Budget
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1.3 Proof of Capital
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1.5 Hours of Operation
Overview
MOM proposes the hours of operation for it’s upscale, world-class cannabis retail storefront be
7AM - 10PM, or other hours determined in cooperation with Fresno PD, which are within the
requirements of state and local law (CCR 16-42-3 5403 and FMC SEC. 9-3310(a)(1)). MOM will
limit deliveries of inventory to the storefront to Monday-Friday 9am-6pm. MOM will be closed on
some major holidays so employees may be with their friends and family.
Opening Procedures
1. Staff Arrives to the Shop
a. Ideally by about 6:00 am. The security company personnel should be on site.
b. DO NOT enter the premises without security being present.
c. Take a moment to survey the grounds surrounding the shop.
- Note any issues with the property i.e. trash in the parking lot, dumpster gates left open,
condition of the storefront, south side of building, etc.
2. Once Security is onsite, enter the building.
a. Enter through the large wooden doors of the delivery bay.
b. Take out the kiosk, stool and mat for the security stand.
c. Unlock the steel security gate covering the back door. There should be three deadbolts to
unlock.
d. Unlock the back door, here, there should be two deadbolts to unlock.
e. Use the provided security door fob to unlock the back door.
f. Ask staff to stay outside until you are able to disarm the alarm system and confirm the shop is
safe for staff to enter.
g. Use your key fob to unlock the back door and enter the building.
3. Disarm the Alarm System.
a. Alarm keypad is located on the wall at approximately chin height, just to the left of the back
door as you enter. It is a small, white touch screen approximately 5” x 7” and will begin
beeping an audible countdown as soon as the door is opened.
b. You have 30 seconds to disarm the alarm using your personal code. Simply type in code, the
alarm system will disarm automatically.
4. Turn on the Lights
a. Intake room light switch is located on the wall at approximately elbow height, just to the left of
the back door as you enter. Tap the top of the switch to turn on the lights in the intake room.
b. Sales Floor light switches are located on the East wall of the intake room, just to the right of
the A/C control. The four square buttons turn on/off lights on the sales floor. Click each once
to turn on. The two tall switches control the shelf lighting. Press and hold the top portion of the
switch to turn the shelf lights on.
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5. Make Sure the Shop is Secure
a. Do a quick visual sweep of the shop to ensure the location is secure before allowing staff into
the building.
6. Raise the Security Door/Window Shutters
a. The shutter controls are located on the East wall of the Intake room, in a lockable plastic box,
just above the A/C controls.
b. Unlock the box. The same key that opens the A/C controls can be used to open the Shutter
controls.
c. Press the “^” symbol to raise the shutters.
d. Observe the opening to ensure no malfunctions occur.
7. Staff Enter to Begin Setting Up Shop
a. Unlock and open the front door to allow staff to enter.
b. Begin COVID Precautions
- Take all staff temps with touchless thermometer
- Record that temps have been taken on Daily Staffing Sheet
- Review any “Red Flags” created by staff “Self Check Pre-Clock In”
c. Unlock the “Vault”
- Unlock the steel security gate covering the Vault door. There should be three deadbolts
to unlock.
- Unlock the Vault door, here, there should be two deadbolts to unlock.
- Use the provided security door fob to unlock the Vault door.
d. Start Staff on Setting the Sales Floor
- With the help of the opening Inventory staff, remove all rolling carts from the vault.
- Only one door of the Intake room can be open at a time, so move the carts from the
vault then into the Intake room.
- Once all carts are out of the vault and in the Intake room, close the Vault and begin
moving the carts onto the Sales Floor.
- Sales floor should be completely set by 9am.
- Continually give staff time updates to gently push them to open on time.
- Reference the “Sales Floor Set Up” SOP for further specifics
8. Turn on the Stereo
a. The main stereo amp is located in a black metal box, approximately head height, on the West
wall of the Intake room, to the right as you enter.
b. Simply press the “>ll” symbol to start the music.
c. On the “Music/MOD” iPad, ensure that only approved Sonos stations are playing.
d. Ensure proper music levels exist to optimize guest experience.
9. Turn on A/C
a. The A/C control is located on the East wall of the Intake room, approximately chest height, in a
clear plastic box.
b. Unlock the clear box using the key already stationed in the lock or possibly in the lock of the
clear plastic box above it.
c. A/C should be set to between 69 and 71 degrees and “cool”. If any other setting is engaged,
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use the “mode” button located in the bottom left corner of the unit to cycle through options until
“cool” is selected.
10. Fill Out Daily Staffing Sheet
a. Reference “Daily Staffing Sheet SOP” for further specifics
11. Start the Daily “Manager Wrap Up” doc.
a. Copy and Paste the template to the bottom of the document
b. Fill in appropriate information
12. Assign Opening Cash Drawers
a. Reference “Assigning Cash Drawers SOP” for further specifics
13. Count the Safe
a. Reference “AM/PM Safe Count SOP” for further specifics.
14. Conduct the Opening “Talk Into Position”
a. TIP/TOP should take between 5 and 10 minutes
b. Review each staff member’s location/position in the store for their shift.
c. Discuss the weekly TIP/TOP action items.
d. Review any specials or promotions occurring in the store.
e. Open discussion to feedback
f. Begin a great shift
15. Observe Exterior of Building
a. Ensure “Open” signs are in place
b. Clear parking lot of any debris/trash
c. Walkways are swept and clean
d. Note any issues in the “Manager Wrap Up” doc.
16. MOM is Open for Business at 7am!
Closing Procedures
1. Be Proactive
a. Starting around 9:30 or 9:45, assess the need for staff to be on drawers, on the floor or begin-
ning the closing process.
b. Closing procedures that can be done ahead of actual closing should be done at this time.
Trash, cardboard, bathroom cleaning, office cleaning, etc.
c. Having an extra cash wrap on at close may seem like a corner that can be cut, but in order to
have all transactions complete by 10pm, it may be worth the while.
d. Communicate with your floor staff that this is the time to communicate openly and respectfully
with our guests regarding our closing time. If a guest makes it to the register, after 9:45 and
unaware of our closing time, the team has missed an opportunity to give an excellent guest
experience.
e. Gather the rolling carts in the inventory intake room in preparation for a quick close.
f. If staffing allows, send a staff member to retrieve the floor mop/vacuum.
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2. As the Last Guest Leaves the Building
a. The idea of a hard stop to business, while absolutely essential, may be viewed from a guest
perspective as odd or distasteful. It is with this in mind that we must ensure that our last guests
receive as good service as our first guests.
b. Once the last guest has left after 9:55 pm, inform security of the store closing, close and lock
the door.
3. Begin to Take Down the Floor
a. Once all guests have left the building (and not before!) and the front door is locked, run out the
rolling carts so that staff may begin to take down the floor product immediately.
b. Leads should assign budtenders to individual sections for an efficient close.
c. As product is placed onto the rolling carts, remind budtenders that this is a great time to sup-
port our opening team by storing product in an organized and well thought out way.
4. Drawers
a. Gather all drawers from registers
b. Be sure to note which staff was assigned to which drawer and the number of the drawer.
c. Take all drawers to the Inv Intake office. So as to not leave cash in drawers during close and
also to not leave drawers in the intake room, proceed to close all drawers as soon as possible.
d. See “Closing a Drawer” SOP
e. Note any major discrepancies in the drawer counts on the Manager ’s Daily Wrap Up spread-
sheet and the MOM Daily Drop Log.
5. Count the Safe
a. Once all drawers have been counted and balanced, all vendor payments for the day have
been completed and cash transactions are no longer needed, count the safe.
b. Please refer to the “Safe Count” SOP.
c. Utilize the “MOM Safe Count” sheet to count quantities of individual bills/coin. Record each on
the safe count sheet.
d. Total both bills and coin separately and then total both together for the full count.
e. Record the total count on the “MOM Monthly Safe Count’ sheet.
f. Note any and all discrepancies in the count on the Manager ’s Daily Wrap Up spreadsheet.
g. Close and lock the safe. Remember to always spin the combination wheel each time you close
the safe.
6. Lock Up Product
a. As staff fills rolling carts with floor product, gather carts on the retail floor near the Intake room
door.
b. Once all product has been added to the rolling carts and shelves/downstock cabinets are clear
of all cannabis product, take all product to the vault.
c. While in the Intake room, only one door can be open at a time. While moving rolling carts into
the Intake room, ensure all other doors to the Intake room remain closed.
d. Once all the product has been moved from the retail floor to the Intake room, close door be-
tween the two rooms, then open the vault and begin moving product into the vault.
e. Once all cannabis product has been secured in the vault, close and lock the vault.
f. The main door will require two deadbolts be locked, the security gate will require three dead-
bolts be locked.
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7. Verification
a. Once the team has made it known that they have finished their closing duties, verify to ensure
all duties are complete.
b. Check the cleanliness of the shop. Floors should be vacuumed and dry mopped. All counters
should be clear of items and wiped down. Register area should be orderly and wiped down,
etc.
c. Check all shelves (especially up on high shelves) for product.
8. Exit
a. Turn off lights and music, check locks on inventory doors, roll down window covers.
b. All employees clock out of Homebase as they leave.
c. Make your way out the front door, go to alarm.com app and ARM the system first, then physi-
cally lock the door.
d. Security guard conducts a final inspection of the exterior of the building and parking lot before
leaving the premises.
1.6 Day-to-Day Operations
Target Market
MOM has a successful history of targeting the 55 and over demographic, first-time users,
medical users, and women. Our wholesome branding and diverse selection of high CBD products
has attracted cannabis users who appreciate cannabis more for its medical benefits than its
psychoactive effects. This is the fastest growing segment of the market and is a major focus of
the retail operation. MOM will continue its mission of Making Cannabis Wholesome in its Fresno
storefront.
Retail Operation Standards
MOM retail procedures will reflect the following objectives:
• Promoting both compliant and efficient operations;
• Ensuring that no unlawful sales transactions or transfers are permitted or tolerated;
• Implementing handling procedures that prevent contamination of cannabis products; and
• Ensuring transparency of all retail operations.
MOM does not dispense cannabis from, obtain cannabis from, or transfer cannabis to a location
outside of the State of California. Shipments of cannabis goods may only be accepted from
a licensed distributor and must be inspected for freshness. Cannabis goods that may not be
accepted include:
• Goods that have exceeded their expiration or sell-by date;
• Goods that are damaged or contaminated; or
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• Goods containing alcohol or tobacco.
Cannabis goods may only be sold, delivered, and accepted between 6:00 a.m. and 10:00 p.m. PT,
however MOM has voluntarily proposed more restrictive hours stated earlier in this application.
Policy Citation: CCR 16-42-3 5403(a) (2019).
In addition to cannabis goods, only sell cannabis accessories and MOM branded merchandise.
Policy Citation: CCR 16-42-3 5407 (2019)
Only sell live, immature cannabis plants if they meet the following conditions:
1. The plants are not flowering;
2. The plants or seeds were purchased from a nursery holding a valid Type-4 license;
3. Labels are affixed to the plants or packages containing any seeds with the following warning:
“This product has not been tested pursuant to Medicinal and Adult-Use Cannabis Regulation
and Safety Act”; 4. No pesticides are applied to the plants while in retail inventory.
Policy Citation: CCR 16-42-3 5408(c) (2019) and CCR 16-42-3 5408(a) (2019)
Only sell cannabis goods to customers under the following conditions:
1. The cannabis goods were received by COMPANY from a licensed distributor or licensed
microbusiness authorized to engage in distribution;
2. MOM has verified that the cannabis goods have not exceeded their best-by, sell-by, or
expiration date if one is provided;
3. In the case of manufactured cannabis products, the product complies with all requirements
of the California Business and Professions Code;
4. The cannabis goods have undergone laboratory testing as required by the Bureau;
5. The batch number is labeled on the package of cannabis goods and matches the batch
number on the corresponding certificate of analysis for regulatory compliance testing; and
6. The packaging and labeling of the cannabis goods complies with the California Business
and Profession Code, all applicable regulations, and the California Code of Regulations.
Policy Citation: CCR 16-42-3 5406 (2019)
Refuse sales to anyone:
1. Who is unable to produce valid proof of identification;
2. Who appears to be using a fraudulent ID and/or medical registration identification card;
3. Who has exceeded the sales limit for that business day; or
4. Who is acting in an unsafe way that would result in employees or other customers being
harmed.
Never provide free samples of adult-use cannabis, cannabis products, or cannabis accessories
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to any person as part of a business promotion or other commercial activity. Never allow a
representative of another organization, such as a vendor’s sales agent, to do the same. Policy
Citation: CCR 16-42-3 5411(a) (2019)
Unless you are placing a barcode or similar sticker on the packaging of cannabis goods to be used
in inventory tracking, do not package or label cannabis goods.
Policy Citation: CCR 16-42-3 5412(c) (2019) and CCR 16-42-3 5412(b) (2019)
Do not allow a customer who has purchased cannabis goods to leave MOM’s premises unless the
goods are placed in an opaque exit package. Policy Citation: CCR 16-42-3 5412(c) (2019)
Only sell adult-use cannabis goods to individuals who are at least 21 years of age after confirming
their age and identity by inspecting a valid form of identification provided by the customer. Policy
Citation: CCR 16-42-3 5404(a) (2019)
Only sell medicinal cannabis goods to individuals who are at least 18 years of age and possess a valid
physician’s recommendation after confirming their age, identity, and physician’s recommendation.
Policy Citation: CCR 16-42-3 5404(b) (2019)
Never allow a customer or patient to be in the retail area when an employee is not present. Policy
Citation: CCR 16-42-3 5402(b) (2019)
Never sell cannabis goods anywhere besides the designated retail area. Policy Citation: CCR 16-
42-3 5402(c) (2019)
Do not sell cannabis goods that have been removed from their packaging for display. Destroy
cannabis goods no longer used for display, following MOM’s waste policies. Policy Citation: CCR
16-42-3 5405(c) (2019)
Refuse sales to anyone who has exceeded the sales limit for that business day.
Adult-use customers: up to 1 ounce (28.5 grams) of non-concentrate (flowers and pre-rolls),
measured by total weight of the product AND; up to 8 grams of concentrate (as measured by the
total cannabinoid content). Medical patients: up to 8 ounces of non-concentrate (flowers and pre-
rolls), measured by total weight of the product AND; up to 8 grams of concentrate (as measured
by the total cannabinoid content). Policy Citation: CCR 16-42-3 5409(a) (2019)
Only allow for customers to return cannabis goods if all returns are investigated to ascertain the
reason for the return and the customer’s account is notated. Returned product, even if sealed,
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must be destroyed and wasted following MOM’s waste procedures. Policy Citation: CCR 16-42-3
5410(b) (2019)
In coordination with the Director of Security, will ensure the following standard security requirements
are being met:
• At each point-of-sale location, cameras are placed in a way that they are constantly recording
the facial features of patients, caregivers, and employees with sufficient clarity;
• All entrances and exits to the center are recorded from both indoor and outdoor vantage
points;
• The facility is being continually monitored;
• An alarm system is installed and properly working;
• All doors into and within the center are equipped with the proper access control; and
• The facility is continuously recorded 24 hours a day.
Food or beverages may not be consumed in the restricted access areas of the retail facility.
Exceptions may be made, on a case-by-case basis, for customers that require food or beverage
for medical reasons. Note: Employees are allowed to consume food if it is done in an employee
designated break room area that includes a room with floor to ceiling walls and a door that
separates the room from cannabis goods. Policy Citation: CCR 16-42-1 5025(d) (2019)
Loitering on MOM’s licensed premises is strictly prohibited, and measures will be taken to ensure
that individuals will not be permitted to remain on the licensed premises if they are not engaging
in an activity expressly related to the operation of MOM’s facility.
Consumption, smoking, or vaporizing cannabis, tobacco, alcohol, or any illicit drug in the center,
the parking lot, or the surrounding area is strictly prohibited.
Policy Citation: CCR 16-42-1 5025(d) (2019) and CCR 16-42-1 5025(f) (2019)
No cannabis goods packages may be opened on the premises.
Any inappropriate conduct or language will not be tolerated and is cause for being asked to leave
the facility. Repeated offenses may result in permanent refusal of service. For the protection of
consumer privacy and for security reasons, photography or video recording is prohibited within
the facility.
Insurance
MOM currently carries General Liability Insurance and Product Liability Insurance for its
existing operations and will do the same for Fresno storefront.
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Staffing
MOM will have one General Manager who oversees the entire operation of the store. Four
Assistant Managers report to the GM, 1 of which exclusively manages the inventory department.
The 3 Assistant Managers who oversee the floor operations manage several Lead Budtenders
and a staff of approximately 25 Budtenders. The 1 Assistant Manager who oversees the Inventory
Department manages 6 Inventory Associates, 1 of which is designates as a Lead. This consists
of approximately 30-45 employees total. A detailed description of the title/positions and their
respected responsibilities, pay rates, benefits, and programs can be found in Section 2 of this
application. A staffing chart can be found below.
MOM also contracts security guard services and a minimum of 1 security guard, licensed by the
Bureau of Security and Investigative Services, is on the premises during all operating hours,
pursuant to CCR 16-42-1 §5045. Below are abbreviated job descriptions.
MOM FR Staffing Chart: 30-45 Initial Employees
More Than Median Labor Peace AgreementOver Minimum
YesAverage Pay Wage Floor
Employee Benefits
Yes
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i) Describe customer check-in procedures.
• Arriving at MOM customers will be directed by signage to the secure well-lit private parking lot.
• Once in the parking lot, customers will have 17 off-street parking spots to choose from including
1 ADA compliant spot.
• The single customer entry is at the corner of E Fern Ave and N Maroa Ave and is easily visible
to arriving customers.
• As customers approach the (bulletproof) glass storefront with attractive double doors, they will
enter into a secure and well appointed lobby .
• There they will be greeted by a friendly receptionist who will check to make sure they have their
ID (and their medical identification card or physician’s recommendation if they are a medicinal
cannabis patient or primary caregiver). An individual will not be admitted to the premises unless
a receptionist has verified the individual’s proof of identification. The identification must contain
a name, photograph, and date of birth, and shall be limited to one of the following:
1. A document issued by a federal, state, county, or municipal government, or a political
subdivision or agency thereof, including, but not limited to, a valid motor vehicle operator’s
license, that contains the name, date of birth, height, gender, and photo of the person;
2. A valid identification card issued to a member of the Armed Forces that includes the
person’s name, date of birth, and photo; or 3. A valid passport issued by the United States
or by a foreign government. MOM will refuse to grant access to the retail sales floor or sell
cannabis goods to any individual who is under 21 years of age. Policy Citations: CCR 16-
42-3 5404(a) (2019) CCR 16-42-3 5404(b) (2019)
• Individuals who are not at least 21 years of age will be politely asked to leave. Refusal to leave
will be considered trespassing and local law enforcement will be notified.
• If it is discovered that the individual’s identification, registration card, or physician’s
recommendation is invalid, expired, or fraudulent, the individual will be asked to leave the
premises and any fraudulent identifications will be confiscated and reported to the Bureau of
Cannabis Control and local law enforcement.
• Once an individual is verified as having the appropriate identification, the receptionist will
enter the eligible customer’s information into the Point of Sale system. This includes but is not
limited to full name, address, date of birth, ID number, and ID expiration date.
• The receptionist will then allow the patient, caregiver, or adult consumer to proceed inside
the store by “buzzing” them in through the remotely controlled secure door, unless maximum
occupancy has been reached. Receptionists can see into the retail floor through glass windows
and also communicate with retail floor employees via two-way radio so that occupancy limits
can be properly adhered to. When capacity is reached, customers will wait in the lobby. The
next customer will enter as one exits the store. This will create a smooth flow during high traffic
times.
• Once in the retail space, a staff member will greet the customer with a smile and a warm
introduction before escorting the customer onto the retail floor. Under no circumstance will a
customer be allowed to enter the retail space without the presence of employees.
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The Customer Experience Post Check-In
• The customer will then engage in the shopping and education experience and select items
they wish to purchase with the assistance of a customer service representative. The store
will offer a visual display of cannabis products protected in glass display cases (unless
the City expressly allows otherwise as seen in the San Luis Obispo storefront). Cannabis
goods for inspection and sale will only be displayed in the retail area and in a place not
visible from outside the licensed premises. Customers will be allowed to inspect packaged
cannabis products without opening them. Megan’s Organic Market will also provide display
samples of packaged cannabis products that will be stored in transparent sealed containers.
Customers must be supervised by a customer service representative when handling
cannabis samples and cannabis samples will not be readily accessible to customers. For
cannabis flower samples, customers prefer to be able to smell the product; to provide for
this while still maintaining the security of the sample, we will use Sensory Pod™ from Bud
Bar Displays. These pods secure the product while offering a closable area of small holes
so that the cannabis product can share its aroma. Cannabis goods removed from their
packaging for display will not be sold, will not be consumed, and will be destroyed when the
cannabis products are no longer used for display. Megan’s Organic Market may also carry
non-cannabis items for retail, however under no circumstance will alcohol (except where
allowed in cannabis tincture), tobacco products, or non-cannabis plants be available for
purchase.
• All Megan’s Organic Market staff are continually trained to be as knowledgeable as possible
about our products. Once the customer has had all of their questions answered and has
made a purchase selection, the customer service representative will then go over how to
use the products selected as well as provide educational pamphlets that teach customers
about everything from dosing to modes of ingestion. Sample pamphlets are included in
this application, see Exhibits. Customer service representatives and educational pamphlets
emphasize preventing the consumption of too much cannabis, especially too much of
an edible product. Ingesting an excess of cannabis, although generally safe, may be an
uncomfortable and unpleasant experience for some customers. Megan’s Organic Market
takes responsibility to do its part in preventing such incidents.
• Once the customer has completed their shopping, they will be escorted to one of at least
five register stations where a customer service representative will check-out the customer.
Another ID verification will take place and the items being purchased by the customer are
tracked in the Point-of-Sale in a customer account that tracks daily purchasing limits.
• Adult-use customers will be restricted to the daily limit of up to 28.5 grams (g) of cannabis
flower and up to 8 grams (g) of cannabis concentrate.
• Customers will then make payment at the time of sale and will be given a receipt. All items
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will be placed in an opaque exit bag and then given to the customer.
• The customer will then exit the premises through the designated exit. No loitering or
consumption of any cannabis products on the premises (including the parking lot) is allowed.
Security guards are trained to watch for such activity.
ii) Identify location and procedures for receiving deliveries during business
hours.
The first step in procuring product at MOM is due diligence performed by the Purchasing Manager.
Prior to executing a purchasing agreement all products are carefully evaluated in several categories:
compliance, consumer safety, local preference, quality, price, and aesthetic compatibility. Each
product must be compliant with all state and local regulations and the Purchasing Manager must
obtain and verify documentation from each vendor including but not limited to: copies of state
licenses, valid Certificates of Analysis, sellers permit, a completed IRS Form W-9, etc.
The Purchasing Manager also obtains product samples and verifies quality, and whether the
packaging and labeling requirements are met. MOM has developed checklists and a detailed SOP
for each product type with extensive compliance checking procedures. An example of what the
Purchasing Manager would be examining for an edible product is below:
1. Edible cannabis goods may not exceed 10 milligrams of THC per serving and may not
exceed 100 milligrams of THC per package.
1. No package or label is made to be attractive to children. CA BPC 26120(b) (2017)
2. The labeling is not false or misleading in any way. Note: This includes any indication that the
cannabis or cannabis product is organic, unless the National Organic Program authorizes
organic designation and certification for cannabis and the cannabis or cannabis product
meets the requirements for such designation and certification. This includes the use of the
word “organic” on the labeling, or variants in spelling such as “organix”. CCR 17-01-13 40410(c)
(2019) and CCR 17-01-13 40410(f) (2019) and CA BPC 26121(a)(2) (2017)
3. Is not labeled as beer, wine, liquor, spirits, or any other term that may create a misleading
impression that the product is an alcoholic beverage.
4. The product is in its finished form and is labeled and packaged in final form for sale. CCR
17-01-13 40401(a) (2019)
5. All required label information is written in English.
6. The primary panel and informational panel contain all required information per the CA
Department of Public Health.
7. The universal symbol is at least 0.5 inches by 0.5 inches and is printed legibly and
conspicuously. CCR 17-01-13 40412(d) (2019)
8. Contains a Prop 65 warning.
9. The package is tamper-evident. CCR 16-42-2 5303(a)(1)(B) (2019) and CCR 17-01-13
40415(b) (2019)
Once all due diligence has been completed and documentation has been verified a purchase
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order may be placed and a delivery scheduled with a licensed distributor.
Accepting Incoming Products
MOM has strict controls for how to manage every stage of the intake process of cannabis products.
MOM has a dedicated inventory team who exclusively work in the restricted access area of the
storefront where vendor deliveries are accepted and processed.
Inventory intake tasks will be performed only upon a previously scheduled and approved delivery
of a shipment of inventory by a licensed distributor to MOM’s licensed premises. Deliveries are
accepted Monday-Friday 9am-5pm only. Vendors must check-in with security personal upon arrival
and paperwork must be verified by MOM inventory personnel before being allowed to proceed into
the secure enclosed delivery bay. Unscheduled and unapproved deliveries will not be accepted.
MOM will receive the cannabis at the designated, secured loading/unloading bay, under video
surveillance, of the licensed premises. The loading bay is protected by 12 foot tall wood or sheet
metal fencing and products are not allowed to be unloaded until the gate is closed and locked. A
set of doors from the loading bay lead directly into the restricted access inventory intake room.
Vendors/Distributors are authorized individuals and will be allowed to enter the limited access
area only if escorted by a MOM employee at all times. See diagram on the next page for exact
location of delivery bay and intake room.
Types of records produced and maintained when acquiring new inventory will include a METRC
shipping manifest and a sales invoice or receipt. The sales invoice or receipt needs to disclose,
at minimum, MOM’s legal business name and license number. MOM will not accept any delivery
of cannabis or cannabis products without receiving a copy of the METRC shipping manifest
containing necessary and accurate information from the licensed distributor responsible for making
the delivery at least 24 hours prior to delivery.
Shipments of cannabis goods must be inspected for freshness and quality. Cannabis goods that
have exceeded their expiration or sell-by date may not be accepted. MOM will not engage in
any packaging or labeling of cannabis or cannabis products, and will not accept any cannabis
or cannabis products from a distributor that are not packaged for final sale. If a MOM employee
discovers there is a defect or non-conformity in an inventory shipment, they will refuse it.
MOM has a detailed SOP and set of checklists for processing the receipt of cannabis inventory
that include but are not limited to:
• Verifying the METRC manifest matches the count of items and METRC UIDs received.
• Verifying Certificates of Analysis match the batch numbers on the product labels.
• Verifying packaging and labeling are compliant.
• Accepting manifest in METRC and ensuring driver and MOM employee sign paper copies
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that are retained, and electronically filed with invoice.
• Following MOM SOP for importing inventory from METRC into Point of Sale and printing
barcode labels.
MOM pays all vendors by check to increase security. Vendors are allowed to leave the delivery
bay only after products have been moved into the Restricted Access Inventory Intake Room. The
roll-up door is then raised and the vendor leaves the premises.
Pictured: MOM Fresno Floor Plan, Secure Delivery Bay Highlighted in Red at Top Left of Diagram
Point-of-Sale Locations Highlighted in Green
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iii) Identify the name of the Point-of-sale system to be used and the number
of Point- of-Sale locations.
MOM will utilize Treez as the point-of-sale system for its retail storefront. Treez is fully integrated
with METRC track and trace software, and has robust inventory tracking and auditing functionalities.
Treez also ensures compliance with tax laws, verifies IDs and age using ID scanning, tracks
purchasing limits across all locations, and much more. Additional information about Treez can be
found at: https://treez.io
MOM will deploy at least 6 point of sale registers and have 1 express pickup station for customers
who place their order online in advance of visiting the store. The register locations are designated
on the floor plan on the previous page as “checkout counter” and highlighted in green. The registers
are strategically located for staff to be able to have a clear view of the retail floor.
MOM will also have 4 mobile point-of-sale units that utilize tablets, mobile belt-clip receipt printers,
and cash bags for customer deliveries.
iv) The estimated number of customers to be served per hour/day.
MOM expects to serve an average of 500-900 customers per day in its first 12 months of operation,
with consistent growth occurring in subsequent years. Fridays and Saturdays are expected to
be on the higher end of the stated range, while weekdays would be on the lower end. A MOM
customer spends an average of 10 minutes inside the store which allows for efficient turnover.
Peak hours are typically between 3pm-6pm where upwards of 150 transactions can occur in a one
hour period. The facility is adequately designed to handle such customer flow and has sufficient
parking. MOM has experience handling high customer volumes at its current San Luis Obispo
retail store.
Pictured Right: Example
of MOM’s vintage style
marketing collateral.
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v) Describe the proposed product
line to be sold and estimate the
percentage of sales of flower and
manufactured products.
MOM began as a Prop 215 Medical cannabis
collective and MOM’s offerings have always
geared toward the needs of medical patients.
MOM will continue providing products that
serve the medical needs of its customers by
maintaining shelf space for products such as
transdermal patches, topical salves, sublingual
sprays, capsules, and tinctures.
In addition to retail medical cannabis products,
MOM will also provide retail adult-use cannabis
products to consumers. Many adult-use cannabis consumers are medical users who choose not to
get their medical cannabis license. Other adult-use consumers use cannabis as part of a workout
routine, sleep routine, or social activity. MOM will carry products for all of these different consumer
needs.
The fastest growing category of both medical or adult-use consumers is first-time users. MOM
will carry products designed for first-time users such as low-dose THC products, CBD:THC
combination products, and ingestibles such as edibles and sublinguals. MOM will also provide
education to first-time users on proper dosing, driving under the influence, cannabis use disorder,
keeping cannabis away from kids and pets, cannabis and pregnancy, etc.
Products will not be visible through windows or by any other means from outside of the dispensary.
All of MOM’s advertising will be targeted to adult audience over 21 years old.
Product Types
High CBD
MOM’s brand was crafted to appeal to seniors and new cannabis users. Because of this, we’ve
always maintained and will continue to maintain a large offering of high-CBD products. High-CBD
products are more approachable to seniors and new cannabis users who want the benefits of
cannabis without the psychoactivity of THC. High-CBD products will remain an integral part of
MOM’s offerings.
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Low-Dose THC
Low-dose THC products are the best choice for new cannabis users who have yet to establish
their THC tolerance level as well as those who want the benefits of THC without the negative
effects of too much psychoactivity. Low-dose THC products include edibles starting at 1 mg THC
per serving as well as tinctures, dissolving strips, and sprays that allow consumers to adjust and
control dosage according to their needs.
Flower
The smokable portion of the female cannabis plant is the most popular product type and comes
in many strain varieties. Flower is the most popular product type at MOM and accounts for
approximately 36% of sales.
Edibles
Edibles, typically food products like gummies or cookies that are infused with cannabis oils, are the
2nd best selling category at MOMs. Industry-wide this is typically not the case, however MOM’s
older, more female clientele prefer edibles over other popular categories. A strong selection of
ingestible inventory will be devoted to low-dose and micro-dose edibles as these products most
appeal to MOM’s clientele. No edibles resembling candy or will be sold. Strict State regulations
control types of edibles allowable, dosage, packaging, labeling and more. Educational pamphlets
about proper dosing for cannabis edibles will be offered to new users. Edibles account for
approximately 32% of sales at MOM.
Concentrates
Concentrates are isolated cannabinoids and terpenes that come in many forms, and are an
important type of cannabis medicine. MOM will carry a wide selection as concentrates are a top
choice for patients dealing with severe pain, seizures, muscle spasms, panic attacks, and opiate
withdrawal as well as for patients who have a high tolerance for CBD or THC. MOM will provide
instruction on safe-use of cannabis concentrates as well as display educational signage warning
about the extremely high potency of cannabis concentrates. Concentrate and vape products
account for approximately 23% of sales.
Vape Products
MOM will carry a wide selection of vaporizer cartridges and accompanying batteries. Vapes heat
cannabis oils and great aerosols that are inhaled. MOM is committed to only selling vaporizer
products without potentially harmful additives and will provide educational materials about vaping
including safe and effective use as well as the need to limit use to designated smoking areas only.
MOM will not sell single-use disposable vape products due to our social commitment to limiting
single use waste. Vape and concentrate products account for approximately 23% of sales.
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Topicals
Lotions, balms, patches, other topical products are infused with cannabis oils are can be
transdermal or non-transdermal (not absorbed into blood stream and therefore non-psychoactive).
These products are popular with customers seeking relief from arthritis and other inflammatory
conditions. Topicals account for approximately 3% of sales at MOM.
Other Ingestibles
Cannabis ingestibles come in many forms and MOM will carry a wide array including: tinctures,
dissolving strips, oral sprays, capsules, cooking oils, etc. MOM will encourage non-smoking
modes of consumption such as these as they reduce consumers risk of diseases associated with
smoking. Other ingestibles account for approximately 4% of sales at MOM.
Plants & Seeds
MOM may sell clones and seeds of the cannabis plant. An informational sheet with local regulations
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on personal cultivation will be included with every purchase of clones and seeds. Plants and
seeds currently account for less than 1% of sales at MOM.
Gear
MOM will carry cannabis accessories such as vaporizer batteries and pipes. MOM will also carry
branded merchandise that are approved by the BCC like clothing and re-usable water bottles.
Gear account for approximately 2% of sales at MOM.
Services
Because seniors and first-time users have traditionally made up a large part of MOM’s clientele,
patient/customer consultations are essential to determining which products are appropriate for
a given individual’s needs. MOM will readily offer free patient consultations to all customers.
Additionally, MOM will run a specialized medically-focused appointment-only free consultation
program overseen by experts in the medical field to further assist those with debilitating medical
conditions.
MOM will also offer in-store educational tours and workshops. Workshops will cover basic cannabis
knowledge including safe-use, dosing, modes of ingestion, possible risks, resources for more
knowledge, etc. MOM will also offer resources and referrals for patients/clients with addiction
issues.
Labeling and Packaging
Products sold by MOM will be properly labeled to ensure consumers are informed about what they
are purchasing and to prevent unintended use. MOM will ensure all products meet the guidelines
provided by the California Department of Public Health (Labeling Requirements Manufactures
Cannabis Products) and the requirements of Division 10 of the Business and Professions Code
(Chapter 12 Packaging and Labeling). MOM has a reputation for sourcing the highest quality
products in the industry. In accordance with State regulation, all retail products sold by MOM will
leave the dispensary in opaque exit bag.
Quality Control of Products
MOM has many operating procedures in place to ensure the highest quality of products. MOM will
ensure all cannabis and cannabis products are dispensed in a safe and sanitary manner that ensures
the identity, strength, quality, and purity of cannabis goods. MOM will properly store inventory,
properly clean the facility, and use environmental controls and pest control management to ensure
that cannabis goods are maintained in a way that prevents deterioration and contamination.
MOM’s facility is designed with a secure, designated inventory storage room (vault) that is
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segregated from: All other storage areas; Employee break rooms; and Bathrooms located indoors.
Further, the inventory storage room is: Indoors;
Equipped with temperature and humidity controls designed to decrease likelihood of degradation
and preserve the quality and longevity of the inventory stored within; Contains refrigeration
equipment and environmental controls; Contains no windows; and Is kept dark, dry, pest-free, and
well-ventilated. All cannabis storage spaces will be climate regulated to 66-70 degrees Fahrenheit
and 45% to 55% Relative Humidity.
MOM has implemented the following quality control policies:
• Confirm that all employees have received Quality Control Training and are competent to
adhere to all MOM Standard Operating Procedures.
• Instruct relevant employees to complete all daily cleaning tasks and conduct a sanitation
inspection once tasks are completed.
• Check all areas (storage rooms, coolers, etc.) for visible rodent droppings and insects daily.
• Only receive and accept inventory that satisfies all internal and regulatory standards, including
identity, strength, quality and purity. This includes verifying that: All cannabis goods received
have not exceeded their best-by, sell-by, or expiration dates, if provided; All manufactured
cannabis products received comply with Business and Professions Code section 26130 and
California Code of Regulations - Manufactured Cannabis Safety; All cannabis goods received
have undergone lab testing; and The packaging and labeling of all cannabis goods received
is compliant. Policy Citations: CCR 16-42-3 5406(b) (2019) and CCR 16-42-3 5406(c) (2019)
and CCR 16-42-3 5406(f) (2019) and CCR 16-42-3 5406(d) (2019)
• Store and handle inventory in a manner that prevents the deterioration of any cannabis goods
stored at MOM. This includes, but is not limited to: Confirming that all area environmental
controls within the inventory storage room and on the sales floor, including temperature,
light, and humidity, are operational and functioning as desired; Verifying products needing
refrigeration or freezing are properly stored in refrigerators and freezers in the storage room
and the sales floor; Product is not to be placed directly on the ground, always use designated
inventory bins for product storage.
• Never sell product that is expired or past its “best by” date.
From the moment the product is received from the distributor, the product will be handled with
extreme care so as to minimize physical damage. The product will immediately be stored in the
secure inventory intake area which will be climate regulated. From there they will be moved into
the climate regulated vault. The vault will be carefully organized using inventory bin organizational
systems in a way that will prevent damage to the products. Products will then be able to be
transferred to the retail floor as needed which will also provide a climate controlled environment.
Care will be taken to ensure that products are not damaged from light exposure. Product rotation
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will be observed by moving the newest products to the back of the inventory shelf. No products
past their expiration date will be sold. Employees will seek customer input as to their satisfaction
with product quality. Product quality control is also governed by which products MOM chooses to
retail and secondary quality inspections occur at intake. MOM has always done and will continue to
do extensive research on available products and the products it chooses to carry. By only carrying
products from the most reputable producers and distributors, MOM can ensure the highest quality
consumer experience.
Cannabis goods removed from their packaging for display will not be sold, will not be consumed,
and will be destroyed when the cannabis products are no longer used for display.
Contamination Prevention Procedures
Hazardous materials other than normal household cleaners may not be brought onto site without
written consent of MOM officers. No chemicals or hazardous materials of any kind may be stored in
the cannabis products vault where products are stored. Cannabis products may only be cleaned with
water and a clean towel. When possible all cleaning products should be made of natural ingredients.
When cleaning, care must be taken to not overspray or contaminate cleaning products onto cannabis
products. No commercial pest control methods may be applied by any MOM employee, only a licensed
pest control commercial applicators may use pesticides. Pesticides for pest control of commercial pests
may only be considered as a last resort due to the possibility of cannabis product contamination. Special
care and preparation would need to be taken to ensure that no cannabis product was contaminated
during any commercial pesticide application.
Product Handling Procedures
Stocking Inventory to the Sales Floor
Using Treez all inventory is tracked by product batch and by “room”. MOM designates the sales
floor and the vault as separate rooms within the system to allow for easy spot check audits in either
location. Inventory must be transferred in Treez to the sales floor before physically moving the
product. Doing so is done using a handheld barcode scanners that scan the barcode of product,
ensuring that the system transfers the correct batch of the product being moved. Inventory staff
periodically run reports throughout each day to determine which products need to be re-stocked
from the vault to the sales floor. Only inventory staff members are allowed to move inventory
between rooms.
A comprehensive overview of product handling procedures is further described in Section 1.8.
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vi) Describe delivery service procedures, number of vehicles and product security
during transportation.
MOM will operate storefront and delivery retail services from the retail licensed premises. MOM
will have 3 delivery vehicles to offer in-person cannabis goods delivery to MOM’s valued patients,
caregivers, and adult-consumers at any valid physical address within our the permissible delivery
radius. Only authorized and properly trained employees of MOM’s licensed retail operation will
be permitted to deliver cannabis goods from the licensed premises to consumers. Each delivery
employee must be 21 years of age or older. MOM will maintain an accurate list of delivery
employees and will provide it, upon request, to representatives of the Bureau and local and state
law enforcement. MOM will not deliver cannabis goods through the use of an unmanned vehicle.
Deliveries of cannabis goods may only be made between the hours of 6:00 a.m. and 10:00 p.m.
PT, or within a more restrictive delivery time specified by the Bureau or the locality in which the
delivery is made. Delivery employees will carry no more than $5,000 worth of cannabis goods
(calculated using the current retail price of the cannabis goods) at any given time. No more than
$3,000 worth of those cannabis goods may be prepared for orders that have not yet been received
and processed by MOM. Policy Citations: CCR 16-42-3 5418 (2019); CCR 16-42-3 5415(a) (2019); CCR 16-42-3
5415(b) (2019); CCR 16-42-3 5415(c) (2019); CCR 16-42-3 5415(f) (2019).
Product Security During Transportation
These tasks will be completed after preparing cannabis goods for delivery. MOM will use locked
transport boxes to deliver products. The General Manager will have a set of keys, and a separate
set will be given to the retail employee responsible for preparing the cannabis goods for delivery
and to delivery employee(s), on an as-needed basis, for the purpose of delivery. The lock boxes
will not only provide additional security, but will ensure that no cannabis goods are visible to the
public when a delivery is in progress. MOM will be using lock boxes designed by top-rated security
specialists. In addition to lock boxes for orders, lock boxes will also be utilized for storing the cash
acquired from order payments. The lock boxes will be secured to the inside of each of MOM’s
unmarked commercial delivery vehicles in the enclosed, windowless cargo section and will not
be comprised of any part of the vehicle. Each lock box will require a separate key to open, thus
preventing a lost key from opening the box. In the unlikely event of a loss of a lock box, MOM will
work in conjunction with law enforcement to trace the missing box. In the case that the cannabis
goods in the lock box are left unattended in the vehicle, such as when the delivery employee is
delivering orders in person to a medical patient, caregiver, or adult consumer, the vehicle is to
be locked and equipped with an active vehicle alarm system and any cannabis goods are to be
locked in the locked box.
Policy Citations: CCR 16-42-3 5415 (2019); CCR 16-42-3 5417(b) (2019); CCR 16-42-3 5417(c) (2019); CCR 16-42-3
5417(d) (2019); CCR 16-42-3 5418(a) (2019); CCR 16-42-3 5422(c) (2019).
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Tracking and Monitoring
The General Manager, in coordination with the Director of Security, will ensure that all delivery vehicles
are installed with a GPS device that is owned by MOM and will be used to track and monitor in real time
delivery drivers who are conducting deliveries. The GPS device will only be used for deliveries and will
remain active and inside the vehicle at all times during the delivery. The GPS device used will allow the
Retail Manager to know where the delivery vehicle is at any time, view where it’s been, and run reports
on the vehicle’s behavior. Reports will be maintained by MOM for a minimum of 90 days. With the help
of the Director of Security, the Retail Manager will set up geofences to receive alerts via text message
or email when the delivery vehicle enters or exits specific areas.
Policy Citation: CCR 16-42-3 5417(d) (2019).
Returning to Premise
If MOM’s delivery driver does not have any delivery requests to be performed for a 30-minute period, he
or she will not make any additional deliveries and will return to the licensed premises. Upon returning
to MOM, all undelivered cannabis goods will be physically returned to inventory by the delivery driver
that same day. All necessary internal inventory and CCTT-METRC records will also be updated, as
appropriate, that same day by the authorized retail employee. The delivery driver will perform the below
tasks until the undelivered cannabis goods are physically returned to COMPANY. The authorized retail
employee will, at that point, perform the rest of the below tasks.
Policy Citations: CCR 16-42-1 5049 (2019); CCR 16-42-1 5049(a)(5) (2019); CCR 16-42-3 5418(i) (2019); CCR 16-42-3
5418(j)(2019).
Delivery Documentation & Recordkeeping
A delivery employee must carry the following documentation when conducting deliveries on behalf
of MOM: A copy of MOM’s current retail license; A copy of the QR Code certificate; The employee’s
driver’s license; A MOM employee badge; A physical or electronic copy of the delivery request receipt for
each delivery in progress; A physical or electronic copy of the delivery inventory ledger; and A physical
or electronic copy of a driving log. The documents required for delivery order fulfillment will include
MOM’s delivery request form, a delivery request receipt, and a delivery inventory ledger. The form
and the receipt are specific to each individual order, while the ledger includes all on-hand inventory for
each delivery trip. Each delivery request receipt must meet the requirements described in the Delivery
Request Receipt SOP. Delivery request documentation will comply with state and federal laws for the
protection of confidential medical information. Other records associated with delivery are all delivery
employee training documentation and delivery personnel records. Delivery records, delivery employee
training records, and delivery personnel records will be legible and stored in a secure area at MOM’s
facility where they will be protected from debris, moisture, contamination, hazardous waste, fire, and
theft. The records will be subject to inspection by the Bureau and will be maintained for a period of 7
years and will be made available to the Bureau upon request. The Director of Security is required to
notify appropriate law enforcement authorities and the Bureau within 24 hours after the discovery of
theft or physical loss of confidential records.
Policy Citation(s): CCR 16-42-3 5415(d) (2019); CCR 16-42-1 5037(a)(1) (2019); CCR 16-42-1 5037(a)(2) (2019); CCR 16-
42-1 5037(a)(3) (2019); CCR 16-42-1 5037(b) (2019); CCR 16-42-1 5037(c) (2019); CCR 16-42-3 5415(e) (2020).
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R- Delivery Overview
A.Promoting Compliant and Efficient Delivery Operations:
1.When scheduling delivery routes, schedule all routes so as to ensure that all requested orders are delivered while
making certain that the route varies from common, previously used routes and that deliveries will not be made to
public property, schools, or non-physical addresses. Schedule all delivery times according to the schedules of the
delivery employees and the receiving customers’ needs.
Please see the Delivery Route Planning SOP for MOM's policies and procedures regarding route planning and
delivery security.
CCR 16-42-3 5421 (2019) CCR 16-42-3 5416 (2019)
2.When receiving delivery requests, accept them via:
1.Delivery app, used for connecting the customer to MOM for the purpose of placing an order of
cannabis goods, not for the actual delivery of the cannabis goods;
2.Phone; or
3.Online orders.
Reference MOM's Delivery Requests SOPs for more information on the policies and procedures that must be
followed when receiving and processing consumer delivery order requests.
Best Practice
3.Upon receiving a delivery request, use CCTT-METRC or MOM's chosen computerized seed-to-sale system to
generate a delivery request receipt that includes:
1. MOM's name and address;
2.The first name and employee number of the delivery employee who will deliver the order;
3.The first name and employee number of MOM's retail employee(s) who prepared the order for
delivery;
4.The first name of the customer and a MOM-assigned customer number for the person who
requested the delivery;
5.The date and time the delivery request was made;
6.The delivery address;
7.A detailed description of the cannabis goods requested for delivery;
8.The total amount paid for the delivery, including taxes, fees, cannabis goods cost, and delivery
charges.
Refer to MOM's Delivery Request Receipts SOP for the policies and procedures that must be followed when
preparing and maintaining delivery request receipts.
CCR 16-42-3 5418(g) (2019) CCR 16-42-3 5420(a) (2019)
4. Create delivery inventory ledgers of all cannabis goods that will be provided to delivery employee. Use information
from the delivery request form and the delivery request receipt. For each cannabis good, the delivery inventory
ledger will include:
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Type of good;1.
Brand;2.
UID;3.
Retail value;4.
An accurate measure of the good, such as the weight or volume.5.
See MOM's Preparing Cannabis Goods for Delivery SOP for the procedures that must be followed when preparing
cannabis goods for delivery.
CCR 16-42-3 5418(e) (2019)
5.After a MOM delivery employee returns to the retail facility after making deliveries, confirm that all undelivered
inventory is consistent with delivery inventory records by conducting an inventory reconciliation to reveal whether or
not there are any inventory discrepancies and account for all undelivered inventory in MOM's chosen computerized
seed-to-sale system and CCTT-METRC.
Refer to the Returning to the Retail Premises After Delivery SOP for MOM's procedures that must be followed when a
delivery employee returns to the retail premises after conducting deliveries.
CCR 16-42-3 5418(j) (2019) CCR 16-42-3 5424(b) (2019) CCR 16-42-3 5424(c) (2019) CCR 16-42-1 5049 (2019)
6.When the delivery employee returns to MOM after completing all deliveries, conduct an internal audit to ensure that
all inventory for the delivery has been accounted for in order to prevent diversion, loss, theft, or negligence. See
MOM's Auditing Delivery Activities SOP for information on the internal audit process for MOM's delivery system.
CCR 16-42-1 5036(a)(1) (2019)
B.Ensuring that No Unlawful Sales Transactions During Delivery are Permitted or Tolerated
1.1. When performing the delivery, instruct delivery employees to:
1.Use the MOM-issued mobile identification card reader to confirm the identity and age of each qualified
registered patient, caregiver, or adult-consumer.
2.Immediately exit the premises, return to the delivery vehicle, and communicate to personnel at the
retail store via radio or phone if a customer’s credentials do not match.
3.Provide the customer with a copy of the delivery request receipt after the product is in the possession
of the customer and add the date and time of the delivery to the receipt. Note: The customer is to
verify the accuracy of the delivery request receipt, initial each line item on the invoice, and place their
full signature at the bottom of the receipt to indicate receipt of the merchandise.
4.Return to MOM using an approved randomized route without making any stops in the case that no
requests are received in a 30-minute period.
5.Call MOM and report any changes and record those changes in the delivery incident log upon arrival if
employee deviates from the pre-planned route.
CCR 16-42-3 5421 (2018) CCR 16-42-3 5420(a)(9) (2019) CCR 16-42-3 5418(f)(2019)CCR 16-42-3 5415(f)(2019)
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2. In coordination with the Director of Security, ensure that all delivery vehicles are installed with a GPS device that is
owned by MOM and is used to track and monitor in real time delivery employees who are conducting deliveries. CCR
16-42-3 5417(d) (2019)
C.Implementing Handling Procedures that Prevent Contamination of Cannabis Goods During
Delivery:
1.Place delivery orders in resealable, tamper-evident, child-resistant, opaque packages.
See MOM's Packaging Cannabis Goods for Delivery SOP for more information about packaging and preparing cannabis
goods for delivery.
CCR 16-42-3 5413(a)(1) (2019) CCR 16-42-3 5413(b)(1) (2019)
2.Use locked transport boxes to deliver products to ensure the security of goods as well as to further prevent
contamination of goods during delivery.
See the Securing Deliveries in the Vehicle Lock Box SOP for an overview of MOM's security measures implemented for
the storage and secured delivery of cannabis goods.
CCR 16-42-3 5417(b) (2019)
D.Ensuring the Training and Safety of all MOM Delivery Employees:
1.With the oversight of the Director of Retail Operations, ensure all delivery employees have the education, training,
and experience, or any combination thereof, to enable them to perform all assigned delivery functions.
CCR 16-42-3 5415(a) (2019)
2.Referencing MOM's Delivery Employee Training SOP, train delivery on the following subjects:
1.Delivery safety;
2.Handling inventory;
3.Delivery routes; and
4.Performing the delivery.
Best Practice
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Policy:
MOM offers an in-person delivery service to registered qualifying patients, personal caregivers, and adult consumers located at a
physical address within MOM's delivery radius in California. All delivery orders must be processed and confirmed as described in
MOM's Delivery Requests - Orders and Receipts SOP.
All deliveries will be accompanied by a delivery request receipt. Information provided on a delivery request receipt may include
protected medical information. Information contained in a physician’s recommendation and received by MOM is deemed
“medical information” within the meaning of the Confidentiality of Medical Information Act and will not be disclosed except as
necessary. As such, access to such information will be restricted to essential employees, provided that access may be granted to
representatives of the Bureau and other government officials if necessary to perform their official duties.
Communication is done through a two-way radio or phone system of MOM's choice. The delivery driver will communicate with MOM
during the following stages of each delivery trip:
The time of arrival at a patient’s, caregiver’s, or adult-consumer’s physical address
If a customer’s credentials do not match the credentials provided by MOM
If the delivery driver deviates from pre-planned route
When the delivery driver has completed a delivery
When the delivery driver has gone 30 minutes with no new deliveries and begins the drive back to COMPANY
COMPANY is to communicate with the delivery driver about any new orders to be delivered during their trip. The responsible retail
employee will send the delivery request receipts electronically to the delivery driver.
While in the process of delivery, the delivery driver is not to engage in any activities outside of delivering orders or stray from the
delivery route except for fuel, vehicle repair, needed rest, or because the continued route is unsafe, impossible, or impracticable.
Needed rest differs from breaks; delivery drivers should not take any work breaks while in the process of making deliveries.
Policy Citations: CCR 16-42-3 5415 (2019) ; CCR 16-42-3 5415(d) (2019); CCR 16-42-3 5415(e) (2019); CCR 16-42-3 5415(f) (2019);
CCR 16-42-3 5416(a) (2019); CCR 16-42-3 5417(c) (2019); CCR 16-42-3 5417(d) (2019); CCR 16-42-3 5418(e) (2019); CCR 16-42-3
5418(f) (2019); CCR 16-42-3 5418(g) (2019); CCR 16-42-3 5418(h)(3)(i) (2019); CCR 16-42-3 5420(a) (2019); CCR 16-42-3
5420(a)(9) (2019); CCR 16-42-3 5421 (2019).
Purpose:
This document describes the procedures that must be followed when delivering cannabis goods to a patient, caregiver, or adult-
consumer, at his or her in-state physical address.
This SOP can be used to fill out the Bureau's Delivery Procedures Form (see the "Resources" section of this SOP for a link to the
form).
Scope:
Retail, Delivery
Employee Responsible:
Delivery Employee
Definitions:
n/a
Resources:
A copy of MOM's current license, delivery employee’s government-issued ID, delivery employee’s MOM issued employee ID badge,
the delivery request receipt associated with each respective delivery, the delivery inventory ledger, delivery incident log, mobile
identification card reader, mobile credit card reader, order lock box, money lock box, Delivery Procedures BCC Form
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RTL - Performing the Delivery
A.Securing Deliveries in the Vehicle Lock Box
1.Place delivery orders located in the outgoing deliveries area of the secure inventory storage room in the lock boxes,
with each lock box containing one or more order and organized in a way that facilitates delivery.
Best Practice
2.Carry the lock boxes to the delivery vehicle. If there are multiple lock boxes, use a wheeled device, such as a
platform cart, to move the lock boxes securely and safely from the storage room to the delivery vehicle through an
entryway not used by the public, ensuring lock boxes are supervised at all times.
CCR 16-42-3 5422(c) (2019)
3.Using the delivery inventory ledger, confirm that the quantity of cannabis goods in the vehicle at the time of
departing MOM is worth no more than $5,000, with no more than $3,000 worth of those cannabis goods being of
orders that have not yet been received and processed by MOM.
CCR 16-42-3 5418(a) (2019)
4.Secure the lock box(es) containing the cannabis goods and the money lock box in the windowless area in the back of
the vehicle where solid or locking metal petitions, cages, or high-strength shatterproof acrylic are used to create a
secure compartment.
CCR 16-42-3 5417(b) (2019)
B. Performing the Delivery
1. Verify that the retail employee who prepared the delivery orders created each delivery request receipt with the
required information, including:
MOM's name and the address of its licensed premises
The first name and employee number of the delivery employee who will deliver the order
The first name and employee number of the licensed retail employee(s) who prepared the order for delivery
The first name of the customer and a MOM-assigned customer number for the person who requested the
delivery
The date and time the delivery request was made
The delivery address
A detailed description of the cannabis goods requested for delivery. The description must include, at
minimum, the weight, volume, or any other accurate measure of the amount of cannabis goods requested
The total amount paid for the delivery, including taxes, fees, cannabis goods cost, and delivery charges
CCR 16-42-3 5418(g) (2019) CCR 16-42-3 5420(a)(1)-(9) (2019)
2. Confirm that the delivery inventory ledger created by the retail employee who prepared the delivery orders includes
the required information for each cannabis goods, including:
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The type of good
The brand
The retail value
UID
The weight, volume, or other measure of the product
CCR 16-42-3 5418(e) (2019)
3. Verify that all cannabis goods that have been prepared for an order that was received and processed prior to delivery
driver’s departure are identified on the delivery inventory ledger.
CCR 16-42-3 5418(e) (2019)
4. Make sure that you have a copy of all of the following on your person during delivery:
MOM's current retail license
Your government-issued identification
Delivery inventory ledger
The driving log
MOM employee badge containing your picture and name
CCR 16-42-3 5415(e)(2019)CCR 16-42-3 5418(g)(2019)CCR 16-42-3 5418(f)(2019)CCR 16-42-3 5418(e)(2019)
5. Prior to leaving for a scheduled delivery route, confirm that the two way radio equipment/communication system
used and the GPS device are operational, that you have access to the mapping service used (i.e., Google Maps), and
that you have the keys needed for unlocking all of the loaded lock boxes.
CCR 16-42-3 5417(d) (2019)
6. Using the mapping service (i.e., Google Maps), begin your delivery route by driving to the first delivery address.
Best Practice
7. When you are approximately five minutes away from the delivery destination, call the adult consumer, patient, or
caregiver and inform them you will be arriving soon.
Best Practice
8. At the moment of arrival, inform personnel at the retail store of your arrival at the delivery location, via radio or
phone.
Best Practice
9. Find the delivery request receipt (or electronic device providing access) and open the back of the delivery vehicle to
remove the lock box that contains the individual’s order. After removing the lock box, close and lock the vehicle.
CCR 16-42-3 5417(c) (2019)
10. Approach the individual's door and knock or ring the doorbell.
Best Practice
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11.Upon arrival at the customer’s door, display your MOM ID badge in plain view for verification to the qualifying
patient, personal caregiver, or adult consumer.
Best Practice
12.Use the MOM-issued mobile identification card reader to confirm the identity and age of each qualified registered
patient, caregiver, or adult consumer. When a customer's credentials don't match, immediately exit the premises,
return to the delivery vehicle, and communicate to personnel at the retail store via radio or phone of the incident.
CCR 16-42-3 5415(f) (2019)
13.After you've approved an individual's credentials, unlock the lock box and give the product to the individual. Best
Practice
14.After the product is in the possession of the individual, provide him/her with a copy of the delivery request receipt.
Add the date and time of the delivery to the receipt.
Note: The patient, caregiver, or adult consumer will verify the accuracy of the delivery request receipt, will initial
each line item on the invoice, then place their full signature at the bottom of the receipt to indicate receipt of the
merchandise.
CCR 16-42-3 5420(a)(9) (2019)
15.Take the individual's payment. If he or she chooses to pay with a debit card, present the mobile credit card reader.
Best Practice
16.Take the lock box back to the delivery vehicle and secure it inside. If the order was paid for with cash, put the cash in
the secured money lock box inside the delivery vehicle.
Best Practice
17.Notify MOM that delivery has been completed and update the delivery inventory ledger to reflect the current
inventory in the vehicle.
CCR 16-42-3 5418(e) (2019)
18.Verify that the phone/radio as well as GPS device are still operational before continuing the delivery route or
returning to the retail store.
CCR 16-42-3 5417(d) (2019)
19.In the event that the phone, radio, and/or GPS are not functioning properly, attempt to troubleshoot on your own. If
they are continuing to malfunction, return to MOM.
Best Practice
20.In the case that no requests are received in a 30-minute period, return to COMPANY using an approved randomized
route without making any stops. When you must deviate from the pre-planned route, call MOM and report any
changes and record those changes in the delivery incident log upon arrival.
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1.7 Cash Handling Procedures
Transportation of Cash from MOM to Financial Institution
Once per week or as needed, cash will be transferred from the licensed premise to MOM’s financial
institution. Cash to be transferred must be prepared by a manager, officer, or owner prior to deposit.
Cash being transferred for deposit will be recorded on the cash ledger and a transfer receipt will be
provided for recordkeeping. Cash deposits will be verified with MOM’s financial institution the following
day. MOM will use a secure licensed cash transportation service when transporting cash off site. MOM
in San Luis Obispo currently banks with North Coast Credit Union and will transport cash to their
receiving facility.
Cash Drawers and Staff Deposits
Daily, prior to opening for retail, each cash drawer will be stocked with change to an amount not to
exceed With six cash drawers in the retail space at any time, the maximum amount of starting
cash in the retail space is The designated manager will count and record the exact amount of
each cash drawer before an employee can access the cash drawer. The manager will put together the
change for the cash drawers using the small bills and coins from the previous days deposit envelopes
as well as a cash inventory for change that will be kept stocked. The manager should go to a
local bank for change for the cash inventory for change as needed. Sales employees will be
designated to a cash drawer and are responsible for its accuracy. Employees are required to notify a
manager when the cash drawer exceeds Managers will transit funds in excess of to the
slot of the drop box safe located near the door of the secure storage room. These funds will be placed
in an envelope with the amount, the date and time, and the employee from whom the funds came
before being deposited in the drop box safe slot. Each employee will keep a written record of amounts
being given to managers to be submitted at the end of their shift. At the end of the employee’s shift, an
Assistant Manager must print a drawer report from Treez indicating the expected amount of the drawer,
and then count the cash drawer and the amount of drop deposits made for the day. The Assistant
Manager must then place all the cash from the cash drawer, along with their record of deposits and
Treez drawer report, in a cash deposit envelope. They must write on the exterior of the envelope the
total amount of cash in the envelope and the total amount of deposits. The Assistant Manager will then
report any discrepancies in Treez and on their cash deposit envelope. The employee must then deposit
their cash deposit envelope to the drop box safe.
The following day a General Manager (GM) will retrieve the deposits and verify them by counting
the cash and checking Treez. Discrepancies found will be reported to owners, disciplinary action or
investigation may be required. If criminal activity is discovered, it will be reported to the BCC and local
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law enforcement within 24 hours. The GM will then sign and date the envelopes. Completed deposit
envelopes will be kept in the GM’s safe in the secure storage room. Owners will then regularly collect
and audit the deposit envelopes from the GM’s safe before sorting cash. Cash may either be stored
onsite in a separate “owner’s safe” up to or deposited to the bank. Vendors/distributors are
paid by check, not by cash, for further cash handling safeguards.
1.8 Inventory Control Procedures
MOM will utilize Treez as the point-of-sale system for its retail storefront. Treez is fully integrated
with METRC track and trace software, and has robust inventory tracking and auditing functionalities.
Treez also ensures compliance with tax laws, verifies IDs and age using ID scanning, tracks
purchasing limits across all locations, and much more. Additional information about Treez can be
found at: https://treez.io
Dedicated Inventory Staff
For maximum inventory controls, MOM deploys strict separation of duties and has a dedicated
inventory team. This team is comprised of 1 Purchasing Manager, 1 Inventory Manager, 1 Lead
Inventory Associate and 4-5 Inventory Associates. The Inventory Manager reports directly to
the General Manager, and is responsible for all inventory related tasks, from intaking of vendor
deliveries, to storage, organization, restocking, tracking of expiring product, waste procedures,
and other related tasks.
Restricted Access to Inventory Areas
The facility is designed with a restricted access inventory intake room that has direct access to
the secure delivery bay, and secure storage room (vault). Only inventory staff members, upper
management, and owners are allowed in the inventory intake room, delivery bay, and secure
storage room (vault). Access to these areas is controlled using electronic keycards that are unique
to each individual. The electronic system has card readers at each door and instantaneously
determines whether the person attempting the gain access has the correct level of permissions,
and keeps an electronic log of all interactions. In addition, all inventory areas have full camera
coverage using advanced hybrid-cloud cameras by Verkada that deploy facial recognition to
easily identify individuals who may be in an area where they are no allowed. Floor staff are never
allowed into the inventory areas of the facility. The electronic keycard and camera systems are
randomly audited at least every 30 days by security personnel to identify any possible breaches.
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Inventory Records & Electronic Track and Trace System
MOM will maintain an accurate record of its inventory at all times using the track-and-trace software
Treez, which integrates with METRC. In the system, MOM will keep a record of the following information
for all cannabis products it has in its inventory: A name, type, and description of each item; The items
unique identifier; An accurate measurement of the weight or quantity of the product; The date and time
products were received from the distributor; Any sell-by or expiration date provided on the cannabis
products’ package; The name and license number of the distributor that delivered the cannabis products
to the retail premises; The price MOM paid for the cannabis products, including taxes, delivery costs,
and any other costs; All sales data related to products.
Treez and METRC will be used for all commercial cannabis activities, including: 1. Sale of Cannabis
Product; 2. Receipt of Wholesale Cannabis Product; 3. Return of Cannabis Product (both returns from
customers and returns to vendors); 4. Destruction and Disposal of Cannabis Product (Including the
name of the entity being used to collect and process cannabis waste and description for any adjustments
made in the track-and-trace system.); 5. Any other information as required pursuant to the State of
California regulations, or by any other applicable licensing authorities. - Unless otherwise specified, all
transactions must be entered into the track-and-trace system within 24 hours of occurrence. MOM will
enter and record complete and accurate information into the track-and-trace system, and will correct
any known errors entered into the track-and-trace system immediately upon discovery. MOM will review
its track-and-trace procedures quarterly to ensure that MOM remains compliant with any changes in
activities required to be recorded pursuant to the State of California regulations, or by any other licensing
authority.
Basic inventory management policies are as follows:
• Management verifies that all MOM retail employees are always:
1. Entering required data and information into METRC whether directly or via Treez. Policy
Citation: CCR 16-42-1 5049 (2019)
2. Documenting each day’s beginning inventory, acquisitions, sales, disbursements,
destruction and disposal of cannabis waste, and ending inventory in METRC.
3. Properly returning defective cannabis goods to the selling licensee.
• Reference MOM’s Performing Inventory Reconciliation SOP and all related reconciliation
records and confirm that inventory reconciliation is being performed every 30 days. Policy
Citation: CCR 16-42-1 5051 (2019) and CCR 16-42-3 5424 (2019)
• Using MOM’s Inventory Discrepancy SOP, confirm that all discrepancies in inventory, if any,
have been, and are continuing to be handled, in compliance with MOM’s policies and the
Bureau’s requirements. Policy Citation: CCR 16-42-3 5424(e) (2019) and CCR 16-42-1 5034
(2019)
• MOM has proper disaster relief procedures in place to ensure that MOM’s inventory will not
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be damaged in the event of a disaster using MOM’s Disaster Relief SOP. Policy Citation: CCR
16-42-1 5038(h) (2019)
• Keep all inventory records in a manner so that they’re readily available to the Bureau of
Cannabis Control or local officials at all times. Note: Copies of any documentation required by
the Bureau will be maintained for at least 7 years after the date of the event. Policy Citation:
CCR 16-42-1 5037 (2019)
Track-and-Trace Loss of Access Procedures
If at any point MOM loses access to the track-and-trace system for any reason, MOM’s managers will
prepare and maintain comprehensive records detailing all commercial cannabis activities that were
conducted during the loss of access. Management will both document and notify the Bureau of Cannabis
Control immediately when: 1. Access to the system is lost; 2. Access to the system is restored; and the
cause for the loss of access identified. - Once access is restored, all commercial cannabis activity that
occurred during the loss of access will be entered into the track-and-trace system within three business
days of access being restored. MOM will not transport, transfer or deliver any cannabis products until
such time as access is restored and all information recorded in the track-and-trace system.
Receiving Cannabis Inventory
Prior to placing a Purchase Order to acquire wholesale cannabis products, the Purchasing
Manager conduct thorough due diligence as discussed in Section A8 - Product Procurement and
Delivery Plan. As also discussed in that section, vendors are required to make an appointment to
deliver goods, and the delivery is conducted using a secure delivery bay. Shipments of cannabis
goods must be inspected for freshness and quality. Cannabis goods that have exceeded their
expiration or sell-by date may not be accepted. MOM will not engage in any packaging or labeling
of cannabis or cannabis products, and will not accept any cannabis or cannabis products from a
distributor that are not packaged for final sale. If a MOM employee discovers there is a defect or
non-conformity in an inventory shipment, they will refuse it.
MOM has a detailed SOP and set of checklists for processing the receipt of cannabis inventory
that include but are not limited to:
• Verifying the METRC manifest matches the count of items and METRC UIDs received.
• Verifying Certificates of Analysis match the batch numbers on the product labels.
• Verifying packaging and labeling are compliant.
• Accepting manifest in METRC and ensuring driver and MOM employee sign paper copies
that are retained, and electronically filed with the invoice.
• Following MOM SOP for importing inventory from METRC into Treez and printing barcode
labels.
After receiving cannabis inventory each product is affixed with a barcode label that corresponds
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to its product batch for tracking purposes. Inventory is then moved into the secure storage room
(vault) and organized by batch in inventory bins placed on commercial shelving units. The METRC
UID tag for each batch is affixed to the front of each bin.
Stocking Inventory to the Sales Floor
Using Treez all inventory is tracked by product batch and by “room”. MOM designates the sales
floor and the vault as separate rooms within the system to allow for easy spot check audits in either
location. Inventory must be transferred in Treez to the sales floor before physically moving the
product. Doing so is done using a handheld “NUG” device that scans the barcode of the product,
ensuring that the system transfers the correct batch of the product being moved. Inventory staff
periodically run reports throughout each day to determine which products need to be re-stocked
from the vault to the sales floor. Only inventory staff members are allowed to move inventory
between rooms.
Sales Recording Procedures
Using Treez, MOM will maintain an accurate record of sale for every sale made to a customer. A
record of a sale will contain the following information: 1. Name and employee number of the retail
employee who processed the sale; 2. Name of the customer and a retailer-assigned customer number
for the person who made the purchase; 3. Date and time of the transaction; 4. List of all the cannabis
products purchased, including the quantity purchased; 5. Total amount paid for the sale including the
individual prices paid for each cannabis product purchased and any amounts paid for taxes. Sales
data is reported to METRC in real time via an API connection. Additionally Treez has reporting tools to
identify any transactions that failed to report to METRC via the automatic API and MOM resolves those
items every 24 hours.
Inventory Reconciliation Procedures
In addition to random daily cycle counts, MOM will perform a full reconciliation of its inventory at least
once every 30 days. Inventory will be verified by a hand count performed by two or more individuals,
then matched to MOM’s inventory records using the handheld NUG devices. Any discrepancies
are investigated by the Inventory Manager and then recorded in Treez. The resulting report of any
discrepancies will then be uploaded to METRC and retained in MOM’s records. The report will be made
available to the Bureau of Cannabis Control or the City of Fresno upon request. If MOM identifies any
evidence of theft, diversion, or loss, or if a significant discrepancy is discovered, MOM will notify the
Bureau of Cannabis Control and local law enforcement. A significant discrepancy in inventory means
a difference in actual inventory compared to records pertaining to inventory of at least 3 percent of
the average monthly sales. For the purposes of this section, average monthly sales will be calculated
by taking a per month average of the total sales for the previous 6 months. If MOM has not been in
operation for at least 6 months, only the months in which the licensee was operating will be used in
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determining average monthly sales. For the purposes of this section, the MOM’s acquisition price will
be used to determine the value of cannabis products in its inventory.
At least every 30 days a system check is also performed that compares the records in Treez with those
in METRC to ensure the system’s data match.
Cannabis Recalls
MOM will promptly quarantine goods subject to a recall and immediately notify all customers who
purchased a recalled product. Returns will immediately be quarantined and all quarantined good will be
destroyed per MOM waste SOP. All actions will be recored in Treez and METRC.
Cannabis Product Disposal Procedures
No cannabis product will be disposed of as cannabis waste unless the cannabis products have been
removed from their packaging and rendered unrecognizable and unusable following MOM’s Cannabis
Waste SOP.
Cannabis Waste Management
MOM will not sell cannabis waste. MOM will comply with all applicable waste management laws
including, but not limited to, Division 30 of the Public Resources Code. MOM will dispose of cannabis
waste in a secured waste receptacle. For the purposes of this section, “secured waste receptacle”
means physical access to the receptacle or area is restricted to the licensee and its employees and
the waste hauler franchise or contracted local agency. Public access to the designated receptacle or
area is prohibited. If a local agency, or waste hauler franchised or contracted by a local agency, is being
used to collect and process cannabis waste, MOM will provide the Bureau of Cannabis Control with
necessary information (e.g name of local agency providing waste hauling services, company business
address, primary contact person, etc.). MOM will obtain documentation regarding the date and time of
waste collected at the licensed premises, obtain a copy of a certified waste weight ticket. If MOM utilizes
self-hauling of waste to be delivered to a licensed facility, only MOM or its employees are permitted to
handle self-hauled waste. A certified waste weight ticket will be obtained from the waste facility.
Employee Theft Reduction Methods
In addition to daily cycle counts and monthly full inventory audits, MOM deploys measures to reduce
incidents of employee theft. These include only allowing sales of products to employees during
designated times of day and requiring that a manger perform such transactions, and subjecting
employees to random bag searches by security personnel. MOM also has staff that engage in loss
prevention surveillance. All employees are subject to background checks.
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1.9 Preventing Unauthorized Access
MOM has strict policies and procedures that prevent the unauthorized access of cannabis products.
Many of these policies and procedures have been outlined in previous sections of this application.
A summary of key policies are:
• A secure lobby where ID is verified before customers are granted access to the sales floor.
• Strict visitor protocols that require signing in to a visitors log.
• Ample staff of the sales floor to assist and supervise customers.
• An advanced security camera system (Verkada) used for loss prevention monitoring.
• A dedicated inventory team creating separation of duties from floor staff.
• Strict vendor delivery procedures with an enclosed delivery bay.
• Storage of cannabis products in a secure vault.
• A policy to permanently ban any customer caught illegally selling cannabis products or
diverting product to minors.
• Strict destruction and waste procedures.
1.10 Compliance
Law Review
For each new venture MOM’s team throughly reviews all applicable law to ensure all aspect of the
business and the Standard Operating Procedures are compliant. This includes but is not limited
to California Business and Professions Code Division 10, California Code of Regulations Title 16
Division 42 and Fresno Municipal Code. In the event that any set of laws conflicts with one another
or has a discrepancy, MOM always defers to the more restrictive language or interpretation. The
MOM ownership team includes Mark Cardona, a licensed attorney.
Compliance Software
MOM has an over 10 year record of
compliant cannabis business operations.
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To assist with the review above, and to track compliance across the organization, MOM utilizes the
compliance software, Simplifya. This software holds records of all Standard Operating Procedures
with regulatory citations, assists with compliance audits that are conducted monthly, and documents
and tracks all licenses, permits, and other regulatory paperwork.
Full compliance audits using Simplifya are conducted at minimum every 30 days. Any issues
identified in the audits get flagged to the appropriate personnel and mitigation measures are
immediately implemented.
Any significant discrepancies in inventory, discovery of diversion or theft, loss of records or breach
of security are promptly noticed to the City and State within 24 hours.
Coordination with Law Enforcement and Regulatory Agencies
MOM takes pride in the deep and productive relationships that are forged with local law enforcement
and regulatory agencies. MOM’s Community Outreach Manager and all upper management
periodically invite local law enforcement to meetings to proactively address issues and implement
preventative measures. If any MOM business has proposed changes in the operation or in
ownership the proper authorities (City and/or State) are notified in advance for approval.
Compliance Training
MOM has extensive initial training for new employees that covers all aspects of compliance with
applicable laws and regulations. Employees are required to also participate in ongoing education
training. Examples of training schedules and materials can be found in the Employee Training
section on the following pages.
Internal Financial Audits
MOM also conducts periodic internal financial audits to ensure proper tax reporting and payments
and to ensure compliance with all applicable laws and regulations. MOM also has outside audits
conducted by a CPA firm yearly.
10+ Years of Tax Compliance
MOM’s various operations have always operated compliantly with regards to taxes since
inception, including sales taxes during Prop 215. MOM can provide any of the following upon
request: Seller’s Permits for Megan’s Organic Market (Delivery Service), MOM SLO LLC (San
Luis Obispo Retail Store), and Red Truck Management (San Luis Obispo County Cultivation,
historical financial statements, city & county cannabis tax filings, state sales tax filings, Federal
tax filings, business licenses, etc.
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Megan’s Organic Market (MOM) has always been committed to creating knowledgeable and highly
trained employees. Employee training begins during the interview and ends when the employee is
no longer employed. As the employee training is comprehensive and includes hundreds of slides,
numerous quizzes, as well as lengthy SOPs and training documents, this application will only
include examples from these documents so as to not exceed the 150 page limit.
MOM will only hire employees that have the education, training, and experience, or any combination
thereof, to enable them to perform all assigned retail functions. Employees will not be allowed to
report to work prior to receiving orientation training or when any required critical training is eight
weeks or more past due. MOM will employ one supervisor and one employee who have successfully
completed a Cal-OSHA 30-hour general industry outreach course offered by a training provider
that is authorized by an OSHA Training Institute Education Center to provide the course.
MOM’s general employee training includes:
• Employee Handbook and The Injury and Illness Prevention Program
• Conduct Standards and Discipline
• Discrimination, Harassment, and Violence
• Health, Safety and Emergency (including COVID-19 precautions)
• Corporate Communications and Technology Systems
• Retail Operation Procedures & Compliance
• Sanitation Procedures
• Local and State Law, Licensing and Enforcement & Violations
• Inventory Tracking and Management Regulations
• Waste Handling, Management, and Disposal
• Security and Surveillance Requirements
• Permitting Inspections by Enforcement Authorities
• Maintenance of Records
• Packaging and Labeling Requirements
In addition to general employee training, Megan’s Organic Market will provide supplemental
training to employees with specific and comprehensive job duties, as needed. Diversity is also
important to MOM, therefore MOM will host yearly training seminars for its employees with a goal
of identifying unconscious biases and reducing workplace discrimination. MOM also conducts
continual in-person and virtual product and brand training sessions.
1.11 Employee Training
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MOM will ensure that the assigned supervisory personnel, the Director of Human Resources
and the General Manager , have the education, training, experience, or combination thereof
necessary to train new employees. Additionally, MOM will ensure that all new personnel receive
all training described in the New and Annual Employee Training SOP and all personnel will receive
the annual refresher training. This annual refresher training will be completed within 12 months
of the previously recorded training completion date. Policy Citations: CCR 16-42-1 5031 (2019);
CCR 16-42-1 5048(b) (2019); CCR 16-42-1 5020(d)(8) (2019).
General Cannabis Training
General cannabis training includes the review of numerous slide presentations. Cannabis 101
covers differences in products including but not limited to edibles, topicals, vapables, concentrates,
flowers, hash, and sublinguals. Cannabis 101 also covers a discussion of potency and choosing
the right dose and product.
The next presentation presented is Cannabis Basics. Cannabis Basics is a guide to the plant
known as cannabis. It describes the various parts of the cannabis plant as well as an in depth
discussion of the various cannabinoids the plant produces and their various effects. Other
presentations for cannabis training include Cannabinoids and the Endocannabinoid System and
Cannabis Concentrates. In addition to these presentations, many product vendors have supplied
Megan’s Organic Market with educational materials for their specific products. These materials
are also reviewed as part of the training program. The following is a selection of vendor talking
points which contain key product information:
In addition to the educational material provided by vendors, MOM regularly hosts vendor training
days where representatives for the various products educate the staff to the unique appeal of their
products. Managers and supervisors will work to ensure that all staff can be as educated about
the products in the store as possible.
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Compliance and Legal Training
All MOM employees who will handle inventory will have to complete CCTT-Metrc training given
by MOM CCTT-Metrc Administrator(s). MOM Administrators will have attended and successfully
completed all required CCTT-Metrc training.
Several documents are used to provide training on compliance and legal. Some documents
are specific to the inventory team including the Inventory Intake SOP, Inventory Storage SOP,
Paperwork and Filing SOP, and Inventory Audit SOP. Other documents are specific to front of
house staff such as MOM’s SOP - Closing The Shop, MOM’s SOP - Opening The Shop, and
Accepting Identification SOP. Other documents apply to all staff such as Waste SOP, Handling
of Regulatory Inspections SOP, Readiness for Regulatory Inspection SOP, Health and Sanitation
SOP, and more. An example of text from one of these SOPs follows:
Customer Service Training and the Employee Handbook
The success of MOM is based on a seven year history of excellent customer service. Good customer
service begins at the hiring process. MOM looks to hire customer service professionals with resumes
demonstrating such. Employees will be further coached to use the correct terminology instead of
slang, they will be coached in their interactions, their appearance and hygiene, as well as their
behaviour. The core of this training comes from the MOM Employee Handbook. The handbook also
covers employment topics such as jury duty, breaks, vacation, sick pay, the customer experience,
harassment policies, drug and alcohol policies, and many more very important topics.
Health and Safety Training
The MOM Health and Safety Plan includes but is not limited to: Fire prevention, Robbery training
prevention, Emergency action plans developed for various emergency situations, Procedures to
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keep employees and the public safe from injury and illness, CPR and first-aid training for Safety
and Management Teams, Numerous proprietary security features, Safety Leadership, Employee
participation, Occupational hazard identification and control, Hazard communication plan, Personal
protective equipment assessment, and Program evaluation and improvement. The following text
from the Health and Safety Plan describes the burglary and robbery procedures:
Robbery: All incidents of theft must be reported to the BCC within 24 hours. In the event of a
robbery, employees are expected to remember and enact the 6 C’s as follows
1. Calm. If someone approaches you with the intention of robbing the store, stay calm. This will
certainly be easier said than done, but it’s critical to your safety. If you panic, the robber’s
adrenaline will rise even higher and could lead to tragedy.
2. Communicate. Listen to what the robber is asking you to do.
3. Cooperate. No one expects you to be a hero in a robbery. Your safety and the safety of
customers in the store is the number one priority. Give the robbers what they want in a way
that maximizes safety.
4. Close and call. As soon as the robbers leave the building, lock the door and call 9-1-1. Once
emergency personnel arrive, call your manager.
5. Control. Once you’re safe and the threat of robbery is over, take control of your emotions and
the surroundings. Do not conduct any business, and do not touch anything. If other customers
are in the store, ask for their patience while you wait for the police to arrive. Do not give out
any information, except to police and company management.
6. Confide. Being the victim of robbery is a traumatic experience that can be difficult to process.
Talk about your feelings. If you need help, talk to a manager or your doctor.
Burglary: If a burglary has been identified to have occurred the following steps should take place:
1. Ensure that the burglary is not in progress and that the site is safe
2. Preserve and secure the crime scene
3. Call local law enforcement
4. Save any relevant security footage
5. Cooperate with officials
6. Report the incident to the BCC and any other entities required by law.
The following text from the Health and Safety Plan identifies other hazards of the cannabis
business:
Occupational Hazard Identification
Occupational hazards for budtenders and administrators include: Sensitizers/allergens,
Ergonomics, Workplace violence, and Disinfectants/cleaning chemicals.
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The following text from the Health and Safety Plan is an example of a control plan addressing one
of the cannabis business hazards identified above:
Disinfectants/Cleaning Chemicals Control Plan
• Proper ventilation is required whenever using chemicals.
• Choose safer cleaning chemicals that meet the cleaning/disinfecting needs.
• Ensure Safety Data Sheets (SDS) are provided and cleaning chemicals are labeled to identify
their contents and hazards per hazard communication standards.
• Warn employees not to mix cleaning products that contain bleach and ammonia.
• Ensure workers know which chemicals must be diluted and how to correctly dilute the cleaners
they are using.
• Provide training on the use, storage, and emergency spill procedures for cleaning chemicals.
• Operate ventilation systems as needed during cleaning tasks to allow sufficient airflow and
prevent buildup to hazardous vapors.
• Review PPE needed such as gloves and goggles.
• Provide areas where employees can wash up after using cleaning chemicals.
Employee Comprehension & Testing
Throughout the training and the employment of the employee, quizzes and testing will be required
along the way in order to demonstrate the employee’s comprehension. Documents such as
Compliance Quiz, Cannabis Basics Quiz, Recycling and Government Quiz, and Health and Safety
Quiz are just some examples of how employees are evaluated throughout their employment.
Examples of these documents are as follows:
Summary
The above narrative and examples are less than a percent of the total texts that support the MOM
training program. Although, due to page restrictions, MOM is unable to provide the complete
training program, the narrative and examples above successfully demonstrate the comprehensive
nature of the program.
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Since its formation in 2013, MOM has maintained compliance with State and local messaging guidelines
in all of its advertising and marketing activities. MOM will continue to ensure that its marketing strategy
emphasizes strict compliance with all standards, including Business and Professions Code (BPC); div.
10. Cannabis; Ch. 15. Advertising and Marketing Restrictions [26150 - 26156].
MOM’s commitment to preventing the diversion of Adult-Use cannabis to minors begins with a
marketing strategy that ensures only adult audiences are targeted. Prior to publishing any digital or
print advertisements, MOM will review audience demographics to ensure a minimum 71.6 % of the
audience is over the age of 21. (BPC 26151-B) Prior to any advertising or marketing from the licensee
involving direct, individualized communication or dialogue, MOM will use age affirmation to verify that
the recipient is 21 years of age or older. MOMs website includes an “age gate” requiring users to verify
that they are 21 or older in order to proceed and access the full site.
All product packaging and labeling will comply with State and local regulations. No products, advertising,
or branding will be attractive to children. This includes avoiding use of cartoons and other images
popularly used to advertise to children, imitating candy labeling, and using the words “candy” or
“candies” anywhere labels (BPC 26151-C).
Comprehensive Strategic Communication Plan
MOM’s Comprehensive Strategic Communications Plan to ensure successful integration of the proposed
commercial cannabis retail project into Fresno includes the following areas of focus:
Dedicated Community Liaison
MOM will designate a Community Liaison for the proposed retail project that can be reached by phone,
email, snail mail, or in person to address questions and concerns as they arise from community members
or City personnel.
Community Engagement and Local Involvement
To start off on the right foot, MOM commits to sending Letters of Introduction to businesses and residents
within 500ft of the proposed location, which will include contact information for MOM’s designated
Community Liaison.
MOM will further engage with the Fresno community through several initiatives, which are detailed
1.12 Communication & Marketing
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in Section 7 of this application. These initiatives include: creating a partnership with local non-profits
to contribute company-sponsored service hours, monetary donations, and the hosting of food drives;
opening our space for Chamber of Commerce and other business community events; establishing
a Community Fund, with the commitment of contributing 1% (a projected annual total) of
MOM’s gross sales to supply the fund; establishing a Community Advisory Board to oversee distribution
of the Community Fund; contributing a minimum of 50 company-sponsored service hours to support
local nonprofits and other organizations or efforts that directly benefit community and its residents
(highway cleanups, resource conservation efforts, farm worker support services, and more); and
organizing quarterly community meetings & seminars with interested residents and business owners in
the surrounding in order to address neighbor concerns, build better relationships with the community,
and give residents an opportunity to ask questions regarding cannabis.
Demonstrated Compliance With State and Local Regulations
MOM is familiar with all cannabis advertising regulations and guidelines, operates its other dispensaries
in compliance with state and local guidelines, and will operate the Fresno dispensary in compliance
with these guidelines. The guidelines that MOM will comply with, as they pertain to communication and
marketing, include:
• All advertisements and marketing shall accurately and legibly identify the licensee responsible for
its content, by adding, at a minimum, the licensee’s license number (B&P §26151(a)(1)).
• Any advertising or marketing placed in broadcast, cable, radio, print, and digital communications
shall only be displayed where at least 71.6 percent of the audience is reasonably expected to be
21 years of age or older, as determined by reliable, up-to-date audience composition data (B&P
§26151(b)). Further, the licensee shall only display such advertising after a licensee has obtained
reliable up-to-date audience composition data demonstrating compliance with this requirement
(BCC § 5040(a)(1)).
• Any advertising or marketing involving direct, individualized communication or dialogue controlled
by the licensee (including in-person, telephone, physical mail, or electronic advertising) shall utilize
a method of age affirmation to verify that the recipient is 21 years of age or older before engaging
in that communication or dialogue controlled by the licensee. For purposes of this section, that
method of age affirmation may include user confirmation, birth date disclosure, or other similar
registration method (B&P §26151(c)). Further, a licensee shall use a method of age affirmation
before having a potential customer added to a mailing list (email, text, etc), subscribe, or otherwise
consent to receiving direct, individualized communication or dialogue controlled by a licensee.
(BCC § 5041(d)).
• All advertising shall be truthful and appropriately substantiated (B&P §26151(d))
• MOM shall not publish or disseminate advertising or marketing containing any statement concerning
a brand or product that is inconsistent with any statement on the labeling thereof (B&P §26152(b)).
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• MOM shall not publish or disseminate advertising or marketing containing any statement, design,
device, or representation which tends to create the impression that the cannabis originated in a
particular place or region, unless the label of the advertised product bears an appellation of origin,
and such appellation of origin appears in the advertisement (B&P §26152(c)).
• All outdoor signs and billboards used for commercial cannabis advertising must be affixed to a
building or permanent structure and comply with the provisions of the Outdoor Advertising Act,
commencing with section 5200 of the Business and Professions Code, if applicable (BCC § 5040(b)).
A licensee shall not advertise or market on a billboard or similar advertising device located on an
Interstate Highway or on a State Highway which crosses the California border (B&P §26152(d)).
The California Bureau of Cannabis Control has made a determination that billboards located on
interstate highways at least 15 miles from state borders is permitted and satisfies the intent of B&P
§26152(d), provided that the billboard is not within 1,000 feet of a day care center, school providing
instruction in kindergarten or any grades 1 to 12, inclusive, playground, or youth center.
• MOM shall not advertise or market cannabis or cannabis products in a manner intended to encourage
persons under 21 years of age to consume cannabis or cannabis products (B&P §26152(e)), and a
licensee shall not publish or disseminate advertising or marketing that is attractive to children (B&P
§26152(f)), and shall not contain the use of objects, such as toys, inflatables, movie characters,
cartoon characters, or include any other display, depiction, or image designed in any manner likely
to be appealing to minors or anyone under 21 years of age (BCC § 5040(a)(3)).
• MOM shall not use any depictions or images of minors or anyone under 21 years of age (BCC §
5040(a)(2)).
• MOM shall not advertise or market cannabis or cannabis products on an advertising sign within
1,000 feet of a day care center, school providing instruction in kindergarten or any grades 1 to
12, inclusive, playground, or youth center. (B&P §26152(g)) *This provision does not apply to the
placement of advertising signs inside a licensed premises and which are not visible by normal
unaided vision from a public place, provided that such advertising signs do not advertise cannabis
or cannabis products in a manner intended to encourage persons under 21 years of age to consume
cannabis or cannabis products.
• MOM shall not publish or disseminate advertising or marketing while the licensee’s license is
suspended (B&P §26152(h)).
• A licensee shall not give away any amount of cannabis or cannabis products, or any cannabis
accessories, as part of a business promotion or other commercial activity. For purposes of this
section, the donation of cannabis or cannabis products by a licensee to a patient or the primary
caregiver of a patient, pursuant to Section 26071, shall not be considered a business promotion
or other commercial activity (B&P §26153). Further, a licensee shall not advertise free cannabis
goods or giveaways of any type of products, including non-cannabis products, this includes a
prohibition on contests, sweepstakes, or raffles (BCC § 5040(a)(4)). Cannabis businesses may sell
products to customers for $0.01.
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• MOM shall not include on the label of any cannabis or cannabis product or publish or disseminate
advertising or marketing containing any health-related statement that is untrue in any particular
manner or tends to create a misleading impression as to the effects on health of cannabis
consumption. (B&P §26154)
• MOM shall not sell or transport cannabis goods that are labeled as beer, wine, liquor, spirits, or
any other term that may create a misleading impression that the product is an alcoholic beverage
(BCC § 5040.1).
• If MOM wishes to sell branded merchandise that is not listed here: clothing, hats, pencils, pens,
keychains, mugs, water bottles, beverage glasses, notepads, lanyards, with the name or logo of
a commercial cannabis business, MOM must receive written approval from the California Bureau
of Cannabis Control (BCC § 5041.1). MOM shall not sell the merchandise until receiving written
approval from the Bureau for the specific item of branded merchandise.
In addition to the above state regulations, MOM will implement additional restrictions when it comes
to communicating and marketing its products. Exterior signage will not contain images associated
with cannabis (e.g. pot leaves, joints, pipes, etc.), no cannabis products will be visible from storefront
windows, and no marketing materials will be displayed on the exterior of the building or in exterior-
facing windows.
Example Instagram marketing posts from MOM San Luis Obispo:
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1.13 Diversity & Gender Parity
Diversity & Inclusion
MOM will make special efforts to achieve high levels of diversity and gender parity
among its staff (and pay rates), and to provide a welcoming retail environment for all
customers regardless of race, gender, sexual orientation, etc. MOM’s hiring managers
will use inclusive hiring practices designed to reduce discrimination. MOM will host
yearly training seminars for its employees with a goal of identifying unconscious biases
and reducing workplace discrimination. MOM will also provide scheduling flexibility to
those with young children.
1.14 Environmental Commitments
• MOM strives to minimize its carbon footprint
• MOM will install solar panels with a goal of producing enough
energy to achieve net zero energy consumption
• MOM has applied for Green Business Certification through the
CA Green Business Network, and commits to achieving full
certification.
• MOM will install three electric vehicle charging stations in its
parking lot
• MOM will install energy efficient appliances throughout its
building
• MOM employees will be rewarded for biking/walking to work
• MOM will install a bike rack in its parking lot area
• MOM will utilize green building practices during construction
and achieve LEED certification
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KEY TAKEAWAYS
2.
SOCIAL POLICY
& LOCAL
ENTERPRISE PLAN
Living Wages: 40% Above Median
Health, Dental, Vision, Paid Vacation, & 401k
90% of Employees from Fresno County
Local Contractors for Tenant Improvements
Shelf Space Priority for Local Brands
Ongoing Education & Growth Opportunities
MOM provides
maximum economic
and community
benefit by prioritizing
locals.
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LIVING WAGE
MORE THAN MEDIAN INCOME
40%
MOM provides living wage jobs to its employees with an average pay rate for entry and mid-
level positions at least more than the median local income for similar positions in similar
businesses. We also have a base of minimum wage and will ensure pay rates meet the
living wage standards found at the following link: https://livingwage.mit.edu/metros/23420
All management level jobs are salaried with Assistant Managers earning and General
Managers earning per year.
MOM also will offer all employees health, vision and dental insurance. Currently MOM offers
Blue Shield Full PPO (Silver or Gold), Guardian Dental with Adult and Child Ortho, Guardian
Vision 20/20 Plan and covers at least 50% of the premiums. MOM also offers alll employees
401K benefits, commuter tax benefits, employee discounts, paid vacation time, and paid volunteer
opportunities. All these benefits are currently offered to employee’s at MOM’s San Luis Obispo
location and will also be offered in Fresno.
MOM excels at what we do because we invest in our employee’s futures and strive to promote
from within. MOM holds multiple training and education sessions every month, including some
from in-house trainers, outside subject matter experts, and brand representatives. All training and
education opportunities are compensated. MOM will also have a partial tuition reimbursement
program for assistant management level employees and higher, as well as those who are on a
management track. This reimbursement program would be available for classes taken at Fresno
City College and other accredited colleges and universities and would reimburse up to 75% of
2.1 Describe whether the Commercial Cannabis Business is committed to
offering employees a Living Wage.
2.2 Briefly describe benefits provided to employees such as health care,
vacation, and medical leave, to the degree they are offered as part of
employment.
2.3 Describe compensation to and opportunities for continuing education
and employee training.
2-3
the cost of tuition. On a case-by-case basis MOM may pay the tuition up-front or on behalf of the
employee when the employee is not financially able to wait for a reimbursement.
MOM will hire individuals for a minimum of one-third (1/3) of the total annual work hours performed
at the business who meets one of the following: (i) Annual family income below 80% AMI; (ii)
Convicted for a cannabis related crime that could have been prosecuted as a misdemeanor or
citation under current State law; (iii) Lived in a low to moderate income census tract in the city for
a minimum of three (3) years; (iv) Veteran; or (v) Former foster home youth who was in foster care
as a minor. (vi) Unemployed; or (vii) Receiving public assistance.
MOM will work with local non-profits and the Fresno Regional Workforce Development Board to
ensure broad outreach to these groups. Additionally, the security guard company that MOM is
contracting with and who developed the Security Plan is owned and operated by veterans and
have a veterans hiring program for guard positions. MOM conditions that at least 80% of guards
assigned to our facility are to be veterans.
MOM will also source products that are owned by individuals who meet the above qualifications
above and provide prime shelf space free of charge to local and social equity brands.
2.4 Describe the Commercial Cannabis Business plan to recruit
individuals who meet the criteria listed in the Social Policy Section 9-3316
(b) (1) of the Fresno Municipal Code (FMC) and the percentage of local
employees it hires.
PRIME SHELF-SPACE
LOCAL & SOCIAL EQUITY - FRESNO COUNTY
FREE
MOM commits to carrying as many local brands and those that are owned by social equity individuals
or from underrepresented groups, as are commercially available at our quality standards. While
many retailers charge for prime shelf space, MOM will prioritize such shelf space for local brands
at no cost. To further support local producers and local jobs in the supply chain, MOM will create
special displays that tell the stories of Fresno County operators, all free of charge. It is anticipated
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LOCAL CONTRACTORS
FRESNO COUNTY
100%
MOM commits to hiring local contractors to complete tenant improvements for the retail storefront.
MOM will also require the general contractor to use local sub-contractors.
MOM will conduct extensive local outreach while hiring, including advertising open positions in
the Fresno Bee, and on local job sites including the “NOW HIRING ! - Fresno CA 559” Facebook
group. MOM will also post job listings on the local sub-sections of Craigslist and Indeed job sites.
MOM will also work with the Fresno Regional Workforce Development Board and local industry
associations to find local employees.
Local Sourcing Methodology
LOCAL HIRE
FRESNO COUNTY RESIDENTS
90%
MOM cares deeply about making a positive economic impact on our community. Therefore
MOM FR LLC commits to employing 90% Fresno County residents. Even further, MOM will give
preferential hiring to Fresno City residents with a minimum goal of 50% of all employees being
residents of the City of Fresno.
that these “storyboard” type displays will help them stand out from more prominent brands in the
marketplace, boosting their sales. MOM truly values buying local.
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2.5 Describe the extent to which the Commercial Cannabis Business will
be a locally managed enterprise whose owners and /or managers reside
within or own a commercial business within the City of Fresno, for at
least one year prior to March 2, 2020.
LOCAL
CITY OF FRESNO
GM
MOM commits that it will fill the General Manager (GM) position with a qualified resident of the
City Fresno, who has lived in the city for at least one year prior to March 2, 2020. MOM GM’s are
well paid salaried positions, roughly depending on experience.
MOM will also attempt to fill as many Assistant Manager positions as possible with City of Fresno
residents and has extended two offers to such individuals already. This offer letters can be found
on the subsequent pages in item 2.8. Assistant Manager positions are also salaried.
Profit Share Incentives for Local Fresno Managers
The GM and Assistant Managers who are Fresno city or county residents will be eligible for a
vested profit share incentive program, contingent upon city approval. After vesting period, MOM
will convert the profit share agreements into actual equity in the business, contingent upon city
approval. This allows local Fresno city and county residents to have equity ownership in the
business.
Diversity & Inclusion
MOM will make special efforts to achieve high levels of diversity and gender parity among its staff
(and pay rates), and to provide a welcoming retail environment for all customers regardless of
race, gender, sexual orientation, etc. MOM’s hiring managers will use inclusive hiring practices
designed to reduce discrimination. MOM will host yearly training seminars for its employees with
a goal of identifying unconscious biases and reducing workplace discrimination. MOM will also
provide scheduling flexibility to those with young children.
MOM FR Staffing Chart: 30-45 Initial Employees
More Than Median Labor Peace AgreementOver Minimum
YesAverage Pay Wage Floor
Employee Benefits
Yes
2-6 MOM FR LLC
2.6 Describe the number of employees, title/position and their respected responsibilities.
2-7
MOM will have one General Manager who oversees the entire operation of the store. Four
Assistant Managers report to the GM, 1 of which exclusively manages the inventory department.
The 3 Assistant Managers who oversee the floor operations manage several Lead Budtenders
and a staff of approximately 25 Budtenders. The 1 Assistant Manager who oversees the Inventory
Department manages 6 Inventory Associates, 1 of which is designates as a Lead. This consists of
approximately 30-45 employees total.
MOM also contracts security guard services and a minimum of 1 security guard, licensed by the
Bureau of Security and Investigative Services, is on the premises during all operating hours,
pursuant to CCR 16-42-1 §5045. Below are abbreviated job descriptions.
The Executive Team, finance, marketing and other admin are roles that ownership and MOM FR
LLC’s parent company, MOM USA LLC, provides for the local establishment. However, there will
be at least 1 local accounting & finance staff member who works on-site and will be a Fresno
County resident.
General Manager
The General Manager is responsible for the overall performance of the retail store including its
profit and loss. The General Manager oversees the departmental management team (Inventory,
Customer Service, Reception, Security) and ensures Megan’s Organic Market’s goals and
objectives are being met. They also identify and cultivate talent, plan for employee growth, and
cultivate an atmosphere of teamwork that is consistent with the brand and vision of the company.
The General Manager also develops strategies, in consultation with the Executive Team, to
optimize use of available company resources for sales growth, customer retention and overall
performance.
Inventory Manager (Assistant Manager: Inventory)
The Inventory Manager also known as “Assistant Manager: Inventory is responsible for all inventory
and state track-and-trace duties and oversees a team of Inventory Associates. They ensure all
inventory related duties are completed in a timely manner and adhere to the applicable standard
operating procedures and compliance rules. The Inventory Manager is ultimately responsible for
the daily management of inventory, including but not limited to receiving and processing vendor
deliveries, organizing storage areas, performing counts and audits, reconciling stock levels,
ensuring adequate product display levels, and compiling reports. The Inventory Manager must
have a deep understanding of all relevant cannabis regulations including METRC, the state track-
and-trace system. This position requires at least 1 overnight shift per month and reports directly
to the General Manager.
Employee Type Overview
2-8
Lead Inventory Associate
The Lead Inventory Associate performs the standard duties of the Inventory Associate in addition
to several higher-level responsibilities. The Lead Inventory Associate oversees the work of the
Inventory Associates when the Inventory Manager is not present. They are also responsible for
reconciling inventory when discrepancies are found, in accordance with required compliance
procedures. Lead Inventory Associates may be required to compile and run reports using computer
software, and are responsible for the daily management of inventory, including but not limited to
receiving and processing vendor deliveries, organizing storage areas, performing counts and
audits, and ensuring all inventory and compliance standards are adhered to. The Lead Inventory
Associate must have a deep understanding of all relevant cannabis regulations including how to
use METRC, the state track-and-trace system. This position requires at least 1 overnight shift per
month.
Inventory Associate
The Inventory Associate is responsible for the daily management of inventory, including but not
limited to receiving and processing vendor deliveries, organizing storage areas, performing counts
and audits, and ensuring all inventory and compliance standards are adhered to. The Inventory
Associate must have a deep understanding of all relevant cannabis regulations including how to
use METRC, the state track-and-trace system. This position requires at least 1 overnight shift per
month.
Assistant Manager
The Assistant Manager is responsible for the day-to-day retail operations. A successful Assistant
Manager will lead by example and cultivate a positive and uplifting environment. They ensure the
store is operating efficiently with minimal customer wait times, and resolve any problems on the
retail floor. The Assistant Manager further ensures that Megan’s Organic Market brand standards
and customer expectations are upheld.
Lead Budtender
The Lead Customer Service Associate performs the standard duties of the Customer Service
Associate in addition to several higher-level responsibilities. The Lead Customer Service
Associate creates a positive and educational experience for each customer. This includes assisting
them throughout their time in the store, making product recommendations, and completing the
transaction using point-of-sale software. Lead Customer Service Associates may also process
customer returns and provide mentorship to Customer Service Associates. The Lead Customer
Service Associate is expected to be professional, friendly, and cultivate brand loyalty with the
customer. A successful Lead Customer Service Associate will achieve sales and operational goals
of the company and maintain strict compliance protocols.
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Budtender
The Customer Service Associate creates a positive and educational experience for each customer.
This includes assisting them throughout their time in the store, making product recommendations,
and completing the transaction using point-of-sale software. Customer Service Associates are
expected to be professional, friendly, and cultivate brand loyalty with the customer. A successful
Customer Service Associate will achieve sales and operational goals of the company and maintain
strict compliance protocols.
MOM’s San Luis Obispo Cannabis Retail Storefront
2.7 Describe whether the CCB has five (5) or more employees and whether
it has signed a labor peace agreement allowing employees to unionize
without interference.
MOM FR LLC will have more than 5 employees and has proactively signed a labor peace agreement
with UFCW Local 8. The agreement can be found on the following pages.
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2-11
2-12
12/01/2020
2-13
2.8 Provide a workforce plan that includes at a minimum the following
provisions:
2.8.1. Commitment for 30% of employees to be local hires; the
business must show that it has either hired or made a good faith
effort to hire bona fide residents of Fresno who have not established
residency after the submission of an application for employment
with the applicant/permittee.
As stated in item 2.4 MOM FR LLC commits to employing 90% Fresno County residents.
Even further, MOM will give preferential hiring to Fresno City residents with a minimum goal
of 50% of all employees being residents of the City of Fresno. MOM’s sourcing methodology
is also explain in item 2.4, and MOM has extended offer letters to several Fresno city
residents for various positions. These offer letters can be found on the following pages.
2.8.2. Commitment to offer apprenticeships and/or compensation
for continuing education in the field.
MOM will have a partial tuition reimbursement program for assistant management level
employees and higher, as well as those who are on a management track. This reimbursement
program would be available for classes taken at Fresno City College and other accredited
colleges and universities and would reimburse up to 75% of the cost of tuition. On a case-
by-case basis MOM may pay the tuition up-front or on behalf of the employee when the
employee is not financially able to wait for a reimbursement.
2.8.3. Commitment to pay a living wage to its employees.
As stated in item 2.1, MOM provides living wage jobs to its employees with an average pay
rate for entry and mid-level positions at least 40% more than the median local income for
similar positions in similar businesses. We also have a base of above minimum wage
and will ensure pay rates meet the living wage standards found at the following link: https://
livingwage.mit.edu/metros/23420
All management level jobs are salaried with Assistant Managers earning and
General Managers earning per year.
2.9 Describe whether the business is willing to serve as a Social Equity Business
Incubator by offering support to local cannabis social equity businesses in
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the form of mentorship, training, equipment donation, a percentage of
shelf space dedicated to Fresno equity business products, legal assistance,
financial services assistance, or other technical assistance support.
MOM is willing and excited at the prospect of serving as a Social Equity Business Incubator.
MOM COO Nick Andre has experience working for a business incubator run by the Cal Poly Small
Business Development Center and Cal Poly Center for Innovation and Entrepreneurship. While
working there he provided business development and technical assistance to dozens of local
small businesses and start-ups. These services were free of charge to the business owner as part
of economic development efforts. Nick, and the MOM team, are willing to offer the same services
to social equity businesses in Fresno.
Offer letters decribed in 2.8.1:
Dear Skylar,
MOM FR LLC is delighted to offer you the full-time position of Lead Budtender. The anticipated start date is
contingent upon the City of Fresno’s cannabis business permit process and will likely be after September 2021.
This offer is contingent upon the results of your background check.
The Lead Budtender performs the standard duties of the Budtender in addition to several higher-level
responsibilities. The Lead Budtender creates a positive and educational experience for each customer. This
includes assisting them throughout their time in the store, making product recommendations, and completing the
transaction using point-of-sale software. Lead Budtender may also process customer returns and provide
mentorship to Budtender's. The Lead Budtender is expected to be professional, friendly, and cultivate brand
loyalty with the customer. A successful Lead Budtender will achieve sales and operational goals of the company
and maintain strict compliance protocols.
You will report directly to the Assistant Managers and the General Manager.
MOM FR LLC will offer you the following benefits which include the following:
● 50% coverage of your medical, dental and vision insurance premiums: Blue Shield Full PPO 2300,
Guardian Dental with Adult and Child Ortho, and Guardian Vision 20/20 Plan
● Access to a 401(k) retirement savings account
● Commuter Tax Benefits including benefits for bicycling to work
● One week of paid vacation time annually
● Paid volunteer opportunities
● Employee discount
Your employment with MOM FR LLC will be on an at-will basis, which means you and the company are free to
terminate employment at any time, with or without cause or advanced notice. This letter is not a contract
indicating employment terms or duration. Please confirm your acceptance of this offer by signing and returning
this letter.
Sincerely, ACCEPTED AND AGREED
Skylar Becvar
Megan Souza
President & CEO
Megan’s Organic Market
_______________________
(Signature)
_____________________
(Date)
2-15
Dear Mark,
MOM FR LLC is delighted to offer you the full-time position of Assistant Manager. The anticipated start date is
contingent upon the City of Fresno’s cannabis business permit process and will likely be after September 2021.
This offer is contingent upon the results of your background check.
As Assistant Manager, you will be responsible for the day-to-day retail operations. A successful Assistant
Manager will lead by example and cultivate a positive and uplifting environment. They will ensure the dispensary
is operating efficiently with minimal customer wait times, and resolve any problems on the retail floor. The
Assistant Manager further ensures that Megan’s Organic Market Fresno brand standards and customer
expectations are upheld.
You will report directly to the General Manager.
.
MOM FR LLC will offer you the following benefits which include the following:
● 50% coverage of your medical, dental and vision insurance premiums: Blue Shield Full PPO 2300,
Guardian Dental with Adult and Child Ortho, and Guardian Vision 20/20 Plan
● Access to a 401(k) retirement savings account
● Commuter Tax Benefits including benefits for bicycling to work
● One week of paid vacation time annually
● Paid volunteer opportunities
● Employee discount
Your employment with MOM FR LLC will be on an at-will basis, which means you and the company are free to
terminate employment at any time, with or without cause or advanced notice. This letter is not a contract
indicating employment terms or duration. Please confirm your acceptance of this offer by signing and returning
this letter.
Sincerely, ACCEPTED AND AGREED
Mark Johnson
Megan Souza
President & CEO
Megan’s Organic Market
_______________________
(Signature)
_____________________
(Date)
2-16
Dear Kylie,
MOM FR LLC is delighted to offer you the full-time position of Lead Budtender. The anticipated start date is
contingent upon the City of Fresno’s cannabis business permit process and will likely be after September 2021.
This offer is contingent upon the results of your background check.
The Lead Budtender performs the standard duties of the Budtender in addition to several higher-level
responsibilities. The Lead Budtender creates a positive and educational experience for each customer. This
includes assisting them throughout their time in the store, making product recommendations, and completing the
transaction using point-of-sale software. Lead Budtender may also process customer returns and provide
mentorship to Budtender's. The Lead Budtender is expected to be professional, friendly, and cultivate brand
loyalty with the customer. A successful Lead Budtender will achieve sales and operational goals of the company
and maintain strict compliance protocols.
You will report directly to the Assistant Managers and the General Manager.
.
MOM FR LLC will offer you the following benefits which include the following:
●50% coverage of your medical, dental and vision insurance premiums: Blue Shield Full PPO 2300,
Guardian Dental with Adult and Child Ortho, and Guardian Vision 20/20 Plan
●Access to a 401(k) retirement savings account
●Commuter Tax Benefits including benefits for bicycling to work
●One week of paid vacation time annually
●Paid volunteer opportunities
●Employee discount
Your employment with MOM FR LLC will be on an at-will basis, which means you and the company are free to
terminate employment at any time, with or without cause or advanced notice. This letter is not a contract
indicating employment terms or duration. Please confirm your acceptance of this offer by signing and returning
this letter.
Sincerely, ACCEPTED AND AGREED
Kylie Becvar
Megan Souza
President & CEO
Megan’s Organic Market
_______________________
(Signature)
_____________________
(Date)
2-17
Dear Roanna,
MOM FR LLC is delighted to offer you the full-time position of Assistant Manager. The anticipated start date is
contingent upon the City of Fresno’s cannabis business permit process and will likely be after September 2021.
This offer is contingent upon the results of your background check.
As Assistant Manager, you will be responsible for the day-to-day retail operations. A successful Assistant
Manager will lead by example and cultivate a positive and uplifting environment. They will ensure the dispensary
is operating efficiently with minimal customer wait times, and resolve any problems on the retail floor. The
Assistant Manager further ensures that Megan’s Organic Market Fresno brand standards and customer
expectations are upheld.
You will report directly to the General Manager.
MOM FR LLC will offer you the following benefits which include the following:
● 50% coverage of your medical, dental and vision insurance premiums: Blue Shield Full PPO 2300,
Guardian Dental with Adult and Child Ortho, and Guardian Vision 20/20 Plan
● Access to a 401(k) retirement savings account
● Commuter Tax Benefits including benefits for bicycling to work
● One week of paid vacation time annually
● Paid volunteer opportunities
● Employee discount
Your employment with MOM FR LLC will be on an at-will basis, which means you and the company are free to
terminate employment at any time, with or without cause or advanced notice. This letter is not a contract
indicating employment terms or duration. Please confirm your acceptance of this offer by signing and returning
this letter.
Sincerely, ACCEPTED AND AGREED
Roanna Becvar
Megan Souza
President & CEO
Megan’s Organic Market
_______________________
(Signature)
_____________________
(Date)
3-1
01-B. Commu-nity Relations Plan
KEY TAKEAWAYS
Quarterly Neighborhood Meetings
Proactive Outreach
Experienced Community Relations Manager
Project Positively Enhances the Neighborhood
No Detectable Odor Off-Site
Being a good
community
member is in our
company’s DNA.
3.
NEIGHBORHOOD
COMPATIBILITY
PLAN
3-2
3.1 Proactive Neighbor
Community Outreach
As a leader in the evolving cannabis space, MOM has a duty to build a foundation for successful
integration of its industry into mainstream culture, and this begins with establishing positive long-
term relations with our immediate neighbors and greater community. To ensure our neighbors and
community members have an avenue to voice their concerns and questions, MOM will appoint a
Community Relations Manager.
A local Fresno resident will serve as the Community Relations Manager and their job is to address
and respond to questions and concerns as they arise from community members or City personnel,
especially related to noise, light, odor, little, vehicles, and pedestrian traffic. Their contact information
will be displayed in the retail facility and they will work to forge lasting relationships with local
residents and business owners. Any community complaints received will be logged and brought to
all MOM Management’s attention and addressed within 24 hours of initial receipt.
MOM also commits to sending letters of introduction and invitation to every residence and business
within 500 feet of the business. MOM also commits to organizing quarterly community meetings
with interested residents and business owners. These meetings will be meant to address neighbor
concerns and build better relationships with the community. Community members will also have
the opportunity to ask questions regarding cannabis. Our goal is always to provide opportunities
to further educate and engage community members. MOM will also invite the community to
educational workshops and other events.
Significant Revitalization & High Design Standards
MOM’s proposal includes a significant facade rehabilitation of an existing blighted and vacant
building that will be consistent with high-quality commercial development standards and improve
the appearance and aesthetics of the surrounding area. Proposed upgrades include but are not
limited to:
• Facade rehabilitation and major interior renovations
• New awnings
• A new glass storefront entry-way with double-doors (example pictured on next page)
• Tasteful signage
• Artistic mural if allowed by the City
• Beautifying the property through drought tolerant landscaping and wall climbing vines.
3-3
• Implementing Net Zero Energy goals through solar
and energy efficient light fixtures
• Installing electric vehicle car chargers and a bike
rack
• Ensuring that exterior lighting is “Dark sky”
compliant
• Rainwater capture systems
• Achieving LEED certification
• Advanced odor control system
• Construction of a new parking lot to not burden street parking
MOM’s high design standards ensure that the facility will be an upscale, world-class cannabis
retail storefront that the city can be proud of. The facility design and security will act as a proactive
measure to deter crime and nuisances.
3.2 Management of Premise
Maintenance, Cleaning, and Appearance Standards & Control Procedures for Exterior and
Landscaping
Megan’s Organic Market strives for the highest standards of appearance. Megan’s Organic
Market will strive to improve the community and immediate area and neighborhood. Daily
before opening, the designated opening employee will inspect the exterior of the building for
litter, appearance, and maintenance concerns. The opening employee will remove trash from the
parking lot, landscaped areas, and sidewalks around the building daily. The opening employee
will use an electric blower to remove dust and sediment from the parking lot area and surrounding
sidewalks on a weekly basis. The opening employee will report to management any maintenance
or landscaping concerns including but not limited to broken irrigation, exterior damage, vandalism,
dead landscaping, diseased landscaping, weeds, broken lighting, security concerns, and loitering.
The opening employee will sign that they acknowledge and understand that Megan’s Organic
Market strives for the highest standards of appearance and that we aim to improve the community
and our immediate area and neighborhood. Employees are encouraged to check the parking lot
and exterior for as needed cleaning and maintenance throughout the day. The designated closing
employee will check the parking lot for as needed cleaning towards the end of their shift.
Security guards also actively monitor the parking lot and areas surrounding the building to
3-4
immediately address any loitering or other issues that may arise. MOM’s security company also
engages in remote monitoring of the premises.
Maintenance, Cleaning and Appearance Standards & Control Procedures for Interior
Megan’s Organic Market strives to maintain the highest standards of appearance, cleanliness,
and maintenance. Our goal is to create clean energetic customer spaces with appropriate decor.
Daily before opening, the designated opening employee will prepare the retail space by checking
for cleanliness. The retail space should have already been cleaned at the end of the previous shift.
Weekly, the opening employee will dust and clean the interior glass of the windows. The opening
employee will ensure all lights are on and check that all devices and machines are in working
order. Maintenance issues will be reported to management. Throughout the shift, employees will
maintain cleanliness throughout the retail space and back areas. Employees will be encouraged
with the age old mantra “time to lean, time to clean.” The designated closing employee will wipe
down all counters and surfaces with non toxic eco friendly cleaner. The closing employee will
vacuum the retail space with a bare floor vacuum. The closing employee will empty all trash non-
cannabis receptacles and bring them to the trash cans outside.
Mitigating Potential Physical Impacts of Cannabis Retail Business
MOM is committed to reducing any potential negative impacts that a cannabis retail business may
have on the surrounding community.
MOM has a detailed Odor Control Plan to mitigate any odor that may be associated with cannabis
products. MOM shall ensure that no odor can be detected on the exterior or interior of the facility
or any neighboring properties. MOM will install an air filtration and treatment system that creates
negative pressure, ensuring air does not escape the facility without first passing through the
filtration system. Additionally, the dual door entrance vestibule provides an additional layer of
protection. For more details regarding the air filtration system, please refer to section 6.2 of this
application.
MOM complies with local ordinances (Ord. No. 20-03, Sec. 13-179) regarding signage and visibility
of cannabis products from the exterior of the building. MOM’s exterior signage contains no graphics
depicting cannabis. No cannabis product is visible from the exterior of the retail location. MOM
utilizes opaque window coverings at its retail locations to prevent visibility of products, while
allowing natural light to enter the space.
3-5
3.3-3.6 Odor Control
Relative to cannabis cultivation and cannabis manufacturing, cannabis retail
operations produce a minimal amount of odor. This is because the cannabis products
to be retailed arrive at the premises already sealed and packaged.
MOM shall ensure that no odor can be detected on the exterior or interior of the
facility or any neighboring properties. MOM will install an air filtration and treatment
system that creates negative pressure, ensuring that air does not escape the facility
without first passing through the filtration system. Additionally, the lobby vestibule
provides an additional layer of protection.
No Detectable Odor
The air filtration system will be a dynamic
activated carbon matrix duct system that
is capable of removing odor, bacteria
and other potentially harmful substances.
The air filtration system creates negative
pressure in the building and also regulates
Air Filtration System Details
the temperature and humidity of the facility. A proposed model is Dynamic V8 which
has been proven to achieve indoor air quality that is 90% cleaner than the outdoor
air surrounding the facility, and has highly efficient odor removal capabilities. This
proposed system is highly energy efficient and has been used successfully in LEED
certified buildings. A detailed mechanical plan for this system will be drafted and
submitted by a licensed mechanical engineer during the building permit/land use
phase of the project.
All MOM management level staff will be trained on how to use and troubleshoot
the odor control system. Regular maintenance will be scheduled in advance, and
inspections will occur yearly to ensure the system is functioning properly.
Training & Maintenance
3-6
For cannabis flower samples, patients
prefer to be able to smell the product;
to provide for this while minimizing odor
inside the facility we will use Sensory
Pod™ from Bud Bar Displays. These
pods offer a closable area of small
holes so that the cannabis product can
Cannabis Displays
share its aroma. All Sensory Pods™ from Bud Bar Displays will remain closed when
not actively being smelled to reduce an odor from escaping.
539 Marsh Street
San Luis Obispo, CA
805.541.1010
info@tenoverstudio.com
MOM SLO LLC.
280 HIGUERA ST, SAN LUIS OBISPO
DATE: 1/23/2019 T2.0
ODOR, HVAC. LIGHTING, PHOTOVOLTAIC NOTES
odor control and air handling system
The Dynamic V8 has set the standard in air cleaning–outperforming anything on the
market in contaminant control, maintenance and cost of ownership.
Designed to meet the rigorous requirements of Green buildings, data centers, hospitals,
pharmaceutical and clean manufacturing, the Dynamic V8 Air Cleaning System couples
maximum effectiveness with unparalleled energy and operational savings.
The Dynamic V8, offering MERV 15 performance, utilizes both the principles of existing
Dynamic products as well as several important technological advances to create a
system that is a quantum leap over the current state of the art. Dynamic V8 Air Cleaning
Systems offer property owners dramatic savings when using the Dynamic V8 in place
of 4” MERV 13 filters in either flat or angled filter racks. On average, it takes at least
32 changes of MERV 13 filters before the first change is needed for the Dynamic V8 -
without pre-filters.
This facility will also implement passive systems to help support the Dynamic V8 unit
by providing an entry vestibule that provides a an air buffer between the interior and
exterior of the space through redundent doors.
interior lighting
Lighting on the interior of the facility will use code compliant, energy efficient LED
bulbs. There will be ample fixtures to achieve a well-lit, positive customer experience,
as measured by the equivalent of 2 foot candles at floor level. Additionally, there will
be accent lighting for decorative purposes. This may include “up-lighting” for walls
and fixtures, and “back-lighting” for product displays. All lights will be connected to a
centrally controlled system that ensures consistent illumination during operating hours.
Minimal interior lighting shall remain illuminated during overnight hours for security
purposes. Please see the lighting diagram on the following page for exact lighting
placement.
exterior lighting
Exterior lighting will be sufficient to illuminate all major areas of the retail location
including but not limited to entry and exit ways, walkways, the parking lot, delivery bay,
points of ingress and egress, and trash receptacles. The lighting system shall include
an automatic light sensitive switch to ensure illumination during all non-daylight hours.
MOM’s site plans propose street improvements along Bianchi Lane where additional
street lighting will be installed at MOM’s expense. All exterior lighting will be energy
efficient LED bulbs and use fixtures that limit light pollution.
limited lighting pollution
MOM is mindful of the potential negative impacts of overnight exterior lighting in
the form of “light pollution”. Following guidelines from the International Dark Sky
Association, MOM will use downward-pointing, “shielded”, exterior lighting that meet
all security requirements.
3-7
539 Marsh Street
San Luis Obispo, CA
805.541.1010
info@tenoverstudio.com
MOM SLO LLC.
280 HIGUERA ST, SAN LUIS OBISPO
DATE: 1/23/2019 T2.0
ODOR, HVAC. LIGHTING, PHOTOVOLTAIC NOTES
odor control and air handling system The Dynamic V8 has set the standard in air cleaning–outperforming anything on the market in contaminant control, maintenance and cost of ownership.Designed to meet the rigorous requirements of Green buildings, data centers, hospitals, pharmaceutical and clean manufacturing, the Dynamic V8 Air Cleaning System couples maximum effectiveness with unparalleled energy and operational savings.The Dynamic V8, offering MERV 15 performance, utilizes both the principles of existing Dynamic products as well as several important technological advances to create a system that is a quantum leap over the current state of the art. Dynamic V8 Air Cleaning Systems offer property owners dramatic savings when using the Dynamic V8 in place of 4” MERV 13 filters in either flat or angled filter racks. On average, it takes at least 32 changes of MERV 13 filters before the first change is needed for the Dynamic V8 - without pre-filters.This facility will also implement passive systems to help support the Dynamic V8 unit by providing an entry vestibule that provides a an air buffer between the interior and exterior of the space through redundent doors.interior lighting Lighting on the interior of the facility will use code compliant, energy efficient LED bulbs. There will be ample fixtures to achieve a well-lit, positive customer experience, as measured by the equivalent of 2 foot candles at floor level. Additionally, there will be accent lighting for decorative purposes. This may include “up-lighting” for walls and fixtures, and “back-lighting” for product displays. All lights will be connected to a centrally controlled system that ensures consistent illumination during operating hours. Minimal interior lighting shall remain illuminated during overnight hours for security purposes. Please see the lighting diagram on the following page for exact lighting placement.
exterior lighting
Exterior lighting will be sufficient to illuminate all major areas of the retail location
including but not limited to entry and exit ways, walkways, the parking lot, delivery bay,
points of ingress and egress, and trash receptacles. The lighting system shall include
an automatic light sensitive switch to ensure illumination during all non-daylight hours.
MOM’s site plans propose street improvements along Bianchi Lane where additional
street lighting will be installed at MOM’s expense. All exterior lighting will be energy
efficient LED bulbs and use fixtures that limit light pollution.
limited lighting pollution
MOM is mindful of the potential negative impacts of overnight exterior lighting in
the form of “light pollution”. Following guidelines from the International Dark Sky
Association, MOM will use downward-pointing, “shielded”, exterior lighting that meet
all security requirements.
539 Marsh Street
San Luis Obispo, CA
805.541.1010
info@tenoverstudio.com
MOM SLO LLC.
280 HIGUERA ST, SAN LUIS OBISPO
DATE: 1/23/2019 T2.0
ODOR, HVAC. LIGHTING, PHOTOVOLTAIC NOTES
odor control and air handling system
The Dynamic V8 has set the standard in air cleaning–outperforming anything on the
market in contaminant control, maintenance and cost of ownership.
Designed to meet the rigorous requirements of Green buildings, data centers, hospitals,
pharmaceutical and clean manufacturing, the Dynamic V8 Air Cleaning System couples
maximum effectiveness with unparalleled energy and operational savings.
The Dynamic V8, offering MERV 15 performance, utilizes both the principles of existing
Dynamic products as well as several important technological advances to create a
system that is a quantum leap over the current state of the art. Dynamic V8 Air Cleaning
Systems offer property owners dramatic savings when using the Dynamic V8 in place
of 4” MERV 13 filters in either flat or angled filter racks. On average, it takes at least
32 changes of MERV 13 filters before the first change is needed for the Dynamic V8 -
without pre-filters.
This facility will also implement passive systems to help support the Dynamic V8 unit
by providing an entry vestibule that provides a an air buffer between the interior and
exterior of the space through redundent doors.
interior lighting
Lighting on the interior of the facility will use code compliant, energy efficient LED
bulbs. There will be ample fixtures to achieve a well-lit, positive customer experience,
as measured by the equivalent of 2 foot candles at floor level. Additionally, there will
be accent lighting for decorative purposes. This may include “up-lighting” for walls
and fixtures, and “back-lighting” for product displays. All lights will be connected to a
centrally controlled system that ensures consistent illumination during operating hours.
Minimal interior lighting shall remain illuminated during overnight hours for security
purposes. Please see the lighting diagram on the following page for exact lighting
placement.
exterior lighting
Exterior lighting will be sufficient to illuminate all major areas of the retail location
including but not limited to entry and exit ways, walkways, the parking lot, delivery bay,
points of ingress and egress, and trash receptacles. The lighting system shall include
an automatic light sensitive switch to ensure illumination during all non-daylight hours.
MOM’s site plans propose street improvements along Bianchi Lane where additional
street lighting will be installed at MOM’s expense. All exterior lighting will be energy
efficient LED bulbs and use fixtures that limit light pollution.
limited lighting pollution
MOM is mindful of the potential negative impacts of overnight exterior lighting in
the form of “light pollution”. Following guidelines from the International Dark Sky
Association, MOM will use downward-pointing, “shielded”, exterior lighting that meet
all security requirements.
3-8
MOM will contract with a local waste hauler for regular pickup of both standard waste and cannabis
waste. The standard waste bins shall be hidden from public view and shall be upkept and cleaned
to prevent odors. Cannabis waste bins will be sealed and secured in the Restricted Access vault
and only accessible to authorized personnel.
Cannabis Product Disposal Procedures
No cannabis product will be disposed of as cannabis waste unless the cannabis products have been
removed from their packaging and rendered unrecognizable and unusable and the resulting mixture is
unfit for human or animal consumption or use at the facility. Confirm that the resulting mixture cannot
easily be separated and sorted. Rendering cannabis into waste must be conducted under video
surveillance and be recorded in METRC and in the Waste Log including: 1. The name of the employee
performing the destruction or disposal; 2. The reason for destruction and disposal; and 3. The entity
disposing of the cannabis waste.
Cannabis Waste Management
MOM will not sell cannabis waste. MOM will comply with all applicable waste management laws
including, but not limited to, Division 30 of the Public Resources Code. MOM will dispose of cannabis
waste in a secured waste receptacle or in a secured area. For the purposes of this section, “secured
waste receptacle” or “secured area” means physical access to the receptacle or area is restricted to the
licensee and its employees and the waste hauler franchise or contracted local agency. Public access
to the designated receptacle or area is prohibited. If a local agency, or waste hauler franchised or
contracted by a local agency, is being used to collect and process cannabis waste, MOM will provide
the Bureau of Cannabis Control with necessary information (e.g name of local agency providing
waste hauling services, company business address, primary contact person, etc.). MOM will obtain
documentation regarding the date and time of waste collected at the licensed premises, obtain a copy
of a certified waste weight ticket. If MOM utilizes self-hauling of waste to be delivered to a licensed
facility, only MOM or its employees are permitted to handle self-hauled waste. A certified waste weight
ticket will be obtained from the waste facility.
3.7 Waste Management Plan
4-1
KEY TAKEAWAYS
4.
SAFETY PLAN
Installation of Fire Sprinklers
24/7 Alarm Monitoring
Knox Box
Emergency Training
Prepared by Licensed Fire Protection Engineer
The safety of our
employees and
customers is our #1
priority.
4-2
7467 Pierce Street Ventura, California 93003 (805) 290-8724
CFP Engineering, LLC
Fire Protection Engineering
December 3, 2020
Ms. Megan Souza
MOM FR LLC
Re: Fire Protection Safety Plan Report
Megan’s Organic Market Retail Cannabis Dispensary
845 E. Fern Street, Fresno, California 93728
Dear Ms. Souza:
Per your request, we have completed this fire code assessment/safety plan report for the
proposed Commercial Cannabis Business (CCB) Permit Application for retail and delivery
operations to be conducted within the existing commercial building located at 845 E. Fern
Avenue in Fresno, California. The proposed operations to be conducted at the building will
include the following:
• The presentation and retail sale of lab-tested medicinal and adult use cannabis
products for qualified patients and public customers. Medical patients are required to
have doctor’s recommendations and photo identification to both enter the facility and
purchase products. Sales of products are within glass cases, open display and
containers. Delivery service is also planned for the proposed facility.
• The proposed operations are to be in complete accordance with City of Fresno’s
Codes and Standards, including Ordinance No. 2018-68.
The purpose of this evaluation is to assess the proposed use of the existing space, evaluate
corresponding fire code requirements, identify deficiencies and to provide recommendations
as needed develop a Safety Assessment Plan in accordance with the City of Fresno’s
submittal requirements as listed in Appendix A, Section 4 of the City’s CCB Permit
Application Procedure Guidelines.
Note: A final fire protection/life safety plan report will be updated and completed once the
project is approved by the City of Fresno and final construction documents are prepared for
our firm’s review and assessment.
The references utilized in this evaluation include the following:
• 2019 California Building Code
• 2019 California Fire Code
• Relevant NFPA Standards, including NFPA 13, 70 and 72
• Architectural Plans prepared by Holroyd Design, LLC. dated 12/2/20
4-3
Fire Protection Safety Plan Report December 3, 2020
Megan’s Organic Market Retail & Delivery Cannabis Business Page 2
845 E. Fern Street, Fresno, California
CFP Engineering LLC
I. Project Description
Per the information provided by your firm, the project will be comprised of a suite of rooms
totaling 4,635 sf of the existing 4,635 sf single story building. The record information on the
building provided by your firm includes the following:
Total Building Area: 4,635 sf
Project Area: 4,635 sf Interior Area plus 504 sf
Limited Access Delivery Bay
Prior Occupancy: Currently Vacant (prior uses include
multiple retail/ business occupancies)
Proposed Occupancy: Retail (M & B Occupancies)
Stories: One
Construction Type: Type V-N
Fire Sprinklers: None (will be provided)
A series of suites within the entire building will be constructed for the proposed retail and
delivery uses. A reduced site plan is indicated below:
Customer Entrance/Exit Project Area: Evacuation Area of Refuge
Figure 1 Site Plan
4-4
Fire Protection Safety Plan Report December 3, 2020
Megan’s Organic Market Retail & Delivery Cannabis Business Page 3
845 E. Fern Street, Fresno, California
CFP Engineering LLC
The indicated interior areas within the existing building will be modified to comprise retail
sales, delivery service and accessory offices/support spaces. A reduced building floor plan is
below (see architect’s floor plan for enlarged view):
Exterior, Fenced and Secured Delivery Bay
Vault
Room/Storage
Retail Sales Room Customer Entrance, Exit
& Waiting Area
Knox Box
Figure 2 Floor Plan
4-5
Fire Protection Safety Plan Report December 3, 2020
Megan’s Organic Market Retail & Delivery Cannabis Business Page 4
845 E. Fern Street, Fresno, California
CFP Engineering LLC
The proposed Exiting Plan is indicated below. The final proposed occupancy load
calculations, floor plan means of egress and circulation pathways were not fully completed at
the time of this preliminary review, but are to be completed prior to our final safety and
construction document plan submittal.
Knox Box
Figure 3 Preliminary Exiting/Evacuation Plan
4-6
Fire Protection Safety Plan Report December 3, 2020
Megan’s Organic Market Retail & Delivery Cannabis Business Page 5
845 E. Fern Street, Fresno, California
CFP Engineering LLC
Per the Megan Organic Market’s (MOM’s) business plan the following operations are
proposed for the facility:
Megan Organic Market’s(MOM’s) is applying for a retail cannabis license in the city of
Fresno. Cannabis dispensary and delivery sales will take place at this location including
the presentation and sale of lab-tested medicinal and adult use cannabis products for qualified
patients and public customers. Medical patients are required to have doctor’s recommendations
and photo identification to both enter the facility and purchase products. Sales of products are
within glass cases and containers. Delivery service is also planned for the proposed facility.
Cannabis will be stored in a secured storage room.
The following operations will not be conducted within the retail premises as part of this
license application:
• There will be no growing or cultivation of cannabis.
• There will be no manufacturing or production of products.
• There will be no extraction of oils or other derivatives from cannabis plants.
• There will be no cooking, baking or related actions of cannabis products.
• There will be no packaging of cannabis goods on the premises.
A detailed and complete description of the proposed retail/delivery sales operations and
procedures are referenced in the separately provided Megan Organic Market’s applicant
submittal package.
II. Assessment of Fire Code Requirements
Since there will be no growing, manufacturing, extraction or production operations at this
facility as part of this retail sales license application, the CBC occupancy classification would
be based on the sales/delivery of packaged cannabis products and the office spaces dedicated
to the support of this effort.
The Retail Sales Floor spaces would be considered as M occupancies as follows:
309.1 Mercantile Group M. Mercantile Group M occupancy includes, among others,
the use of a building or structure or a portion thereof, for the display and sale of
merchandise and involves stocks of goods, wares or merchandise incidental to such
purposes and accessible to the public. Mercantile occupancies shall include, but not
be limited to, the following:
Department stores
Markets
Retail or wholesale stores
Sales rooms
4-7
Fire Protection Safety Plan Report December 3, 2020
Megan’s Organic Market Retail & Delivery Cannabis Business Page 6
845 E. Fern Street, Fresno, California
CFP Engineering LLC
Aside from the main Retail Sales Room, the remaining areas include the following which are
all classified as B occupancies:
• Reception Lobby/Waiting Rooms
• Offices, Training/Meeting Room and Inventory/Intake Room
• Employee Break Room and Restrooms
The Limited Access Vault/Storage Room is an S-Occupancy and would be considered as an
accessory use to the primary occupancy due to its limited area with respect to the total space.
The proposed tenant improvement within the existing building is consistent with the prior
historical mercantile and office/business uses in terms of occupancy classification (M and B
occupancies) and in our opinion does not increase the occupancy hazard beyond the
previously permitted uses.
Travel Distances and Exiting
Per Sections 1006.1 and 1006.2 of the
CBC, the number of exits and exit
access doorways must comply with the
following:
Per Table 1006.2.1, the maximum common path of egress travel distance in an F or B-
Occupancy space with an approved fire sprinkler system is 100 feet for an occupant load of
up to 49, and also 100 feet for an S occupancy with an occupant load of up to 29:
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Per Section 1017.2 of the CBC, exit travel distances must comply with the following:
Per Table 1017.2, the maximum exit access travel distance with an approved fire sprinkler
system for a B occupancy building is 300 feet, and 250 feet for an S-1 occupancy:
At this time, the preliminary exit plan generally meets exiting requirements. A complete
CBC compliant occupancy evaluation and exiting plan will be required in order to be
completed prior to the final safety and construction document plan submittals.
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III. Summary Requirements and Recommendations
The following list of fire protection assessment items is int ended to address Items 4.1
through 4.5 as listed in Appendix A, Section 4 of the City’s CCB Permit Application
Procedure Guidelines, and are numbered to match the Section 4 list:
4.1 Safety Plan Summary
This report has been prepared by our firm (please see resume following this report) and is
intended to meet the requirements of this section. A final fire protection and life safety plan
will be updated and completed once the license is approved by the City of Fresno and final
construction documents are prepared for our firm’s review and assessment.
Since there are no extraction, manufacturing or processing operations to be conducted as part
of this retail/delivery license, fire hazards, life safety hazards and inhalation issues/threats for
this proposed retail/delivery sales and support areas are in line with typical retail operations.
We do not believe that cannabis inhalation hazards will be a threat at this facility as all
cannabis related goods will be packaged, no consumption will take place on the premises and
a carbon filtration system with a negative pressure component will be installed.
Other than small amounts of typical cleaning products, there will be no hazardous materials
located within the retail/delivery sales business. The employee training process will ensure
that all typical cleaning products will be stored within a janitorial cabinet.
Typical fire and life safety hazards present in retail sales and delivery operations similar to
this proposed facility use would be mitigated by the following:
• Maintenance of all required exiting, including signage.
• Maintenance of code complaint fire sprinkler and fire alarm systems.
• Safe retail process operations, including:
Proper inventory control, management and storage.
• No smoking within the building.
• Installation and maintenance of fire extinguishers.
• Proper staff training, including emergency/medical response protocols.
There is currently no fire alarm system installed within the existing building. We
recommend that a full NFPA 72 compliant fire alarm system be installed throughout the
building with corresponding smoke detection, manual pull stations and occupant notification.
At this time, we anticipate a local fire alarm contracting firm will be engaged for installation,
monitoring and maintenance services. Potential firms include Integrated Fire & Safety, (805)
648-5906) or Bay Alarm Company, (805) 658-0555.
The operational fire alarm system will be remotely and continuously monitored on a 24/7
basis by a UL listed central station who will notify licensed security professionals and first
responders (per Fresno Ordinance Section 11.437(a)(2)) in the event of an emergency.
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4.2 Accident & Incident Reporting Procedures
Megan’s Organic Market (MOM) has developed an accident and incident reporting
procedure which we have reviewed and will be promptly provided upon request. The
procedure has been developed for the safety of Megan’s Organic Market’s staff, customers,
patients, vendors and visitors. Incidents are considered any occurrence which could have
resulted in an injury and accidents are considered any occurrence which resulted in an injury.
The accident reporting/investigation procedure includes the requirements to be performed by
Wheelhouse Fresno staff as follows:
Accident Reporting Policy
This accident report policy affects all MOM employees and independent contractors.
MOM’s accident reporting policy outlines the purpose and procedure for reporting on-
the-job accidents. MOM is committed to enforce all health and safety guidelines to avoid
such occurrences and expects employees to comply. However, accidents are sometimes
unavoidable. Our provision in this case is to ensure all accidents are reported timely so
they can be investigated properly, and preventative measures can be reviewed and
reinforced.
On-the-job accidents that must be reported include any incidents that may cause minor or
severe injuries or incidents that are results of negligence or inadequate safety
precautions. The victims may be employees who were injured while performing their
duties or other people that were on dispensary premises.
Accidents must be reported as soon as possible to expedite investigation and increase
likelihood of important findings. The sooner the cause or details of the accident are identified,
the sooner MOM can establish preventative measures for the future.
What should be reported under the Accident Reporting Policy?
MOM encourages employees to report all accidents no matter how minor.
Employees are also required to report occurrences that may not have involved injuries or
victims but could be potentially dangerous if repeated. These include but are not limited
to:
• Explosions
• Slippery surfaces
• Water or gas leaks
• Inadequate insulation of circuits
• Collapses of walls, ceilings etc.
• Breaking of window glasses or frames
Procedure
When an employee witnesses or is involved in an incident they must report it to their Manager
on Duty within 24 hours. If the employee anticipates an accident due to perceived negligence
or inadequate safety, they must notify their Manager on Duty as soon as possible so the
accident can be prevented.
Depending on the incident, official forms may have to be completed and submitted, including
but not limited to OSHA Forms 300 and 301, or workers compensation forms. MOM
maintains all employment records, including accident reports, for 10 years.
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MOM’s Manager on Duty must initiate an investigation or request an investigation from the
General Manager if appropriate.
The employee who reported the accident must cooperate if called in for questioning to
provide needed details. As a general rule, the employee must provide information in the
incident report as accurately as possible on the following:
• The place of the accident
• The date and time of the accident
• The people involved or injured
• Their position or involvement in the accident
• Their actions immediately after the accident
• Disciplinary Consequences
The company places great importance in this policy. All employees are obliged to
comply. Any employee that is discovered to have been aware of a serious accident and
failed to report it will face appropriate disciplinary consequences. When employees are
the cause of an accident, they must report it immediately to minimize legal
repercussions.
4.3 Building Evacuation Routes
Referring to the architect’s exiting plan and the information provided in Section II of this
report (see Figure 3), the proposed exiting arrangement, travel distances and paths of egress
are generally compliant with the requirements of B and M occupancies for a fire sprinklered
facility. A complete CBC compliant occupancy evaluation and exiting plan will be required
in order to be completed prior to the final safety and construction document plan submittals.
Multiple exterior refuge areas (see Figure 1) for customers and employees are available
beyond the exterior exits.
In the event of a non-fire emergency, staff will guide customers and direct them to the
identified exits and out to refuge areas in the public way pending confirmation that these areas
offer safe conditions and that an exterior threat is not present. If a fire incident occurs and is
smoke is detected as part of the fire alarm system, the fire alarm notification devices will
sound and occupants will be directed to exit the building immediately through the noted exit
doors.
Access controlled interlocked doors may be installed for security purposes. This is permitted
by the CBC, provided the provisions of CBC Chapter 10, section 1010.1.9.8 are met.
We will require the installation of panic (fire exit) hardware at each of the exit doors to the
exterior of the units. In addition, provide emergency exit hardware at all controlled access
points to allow personnel exiting during an emergency condition. Hardware to be in
compliance with Chapter 10 of the CBC. Means of egress cannot compromised by required
security features. Illuminated exit signs are to be located above all required exits per Chapter
10 of the CBC.
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4.4 Location of Fire Extinguishers/Fire Suppression Equipment
Fire Extinguishers:
Proposed fire extinguisher locations are to be indicated on the architect’s construction
document plans. Once the final architectural documents are prepared, we will provide
recommendations for the installation of fire extinguishers throughout the building as required
by the CFC. At this time, we recommend the installation of 5 pound 2A 10B:C multi-
purpose dry chemical fire extinguishers in each of the following rooms:
• Reception Lobby/Waiting Area
• Retail Sales Room
• Manager’s Office
• Employee/Drivers Lounge Breakroom
• Limited Access Storage Vault
• Limited Access Inventory/Intake Room
• Exterior Limited Access Delivery Bay
Fire Sprinkler System:
There is currently no fire sprinkler system present within the building. To provide additional
fire and life safety protection, a new NFPA 13 complaint automatic wet fire sprinkler system
will be installed throughout the facility. The minimum NFPA 13 basis of design fire
sprinkler requirements for the spaces will include the following:
Ordinary Hazard Group 2: Retail Sales Room, Inventory/Intake Room,
Inventory Storage/Vault Room
Light Hazard: Offices, Meeting Room, Lobby/Reception,
Restrooms, Break Room, Conceal Combustible
Spaces per NFPA 13 Requirements.
Fire Alarm System:
There is currently no fire alarm system installed within the existing building. In accordance
with Ordinance 2018-68 Section 9-3310, (b) (2) (iv), we recommend that a full NFPA 72
compliant fire alarm system be installed throughout the building with corresponding
sprinkler system monitoring, manual pull stations and occupant notification. A local fire
alarm contracting firm will be engaged for installation, monitoring and maintenance services.
The operational fire alarm system will be remotely and continuously monitored on a 24/7
basis by a UL listed central station who will notify licensed security professionals and first
responders in the event of an emergency.
Fire Department Knox Box:
A knox box will be located adjacent to the main entrance or at a location approved by the
Fresno Fire Department.
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4.5 Fire and Medical Emergency Training
Megan’s Organic Market (MOM) has developed a procedures and training plan for fire and
medical emergencies as part of their overall safety plan which will be promptly provided
upon request. We have reviewed their current plan for compliance with the intent of this
requirement. Following are excerpts from their current procedures:
Health and Safety Training
The MOM Health and Safety Plan includes but is not limited to: Fire prevention,
Robbery training prevention, Emergency action plans developed for various emergency
situations, Procedures to keep employees and the public safe from injury and illness,
CPR and first-aid training for Safety and Management Teams, Numerous proprietary
security features, Safety Leadership, Employee participation, Occupational hazard
identification and control, Hazard communication plan, Personal protective equipment
assessment, and Program evaluation and improvement.
Employee Comprehension & Testing
Throughout the training and the employment of the employee, quizzes and testing will be
required along the way in order to demonstrate the employee’s comprehension. Documents
such as Compliance Quiz, Cannabis Basics Quiz, Recycling and Government Quiz, and
Health and Safety Quiz are just some examples of how employees are evaluated throughout
their employment. Examples of these documents are as follows:
Megan’s Organic Market (MOM) has always been committed to creating knowledgeable and
highly trained employees. Employee training begins during the interview and ends when the
employee is no longer employed. As the employee training is comprehensive and includes
hundreds of slides, numerous quizzes, as well as lengthy SOPs and training documents, this
application will only include examples.
MOM will only hire employees that have the education, training, and experience, or
any combination thereof, to enable them to perform all assigned retail functions.
Employees will not be allowed to report to work prior to receiving orientation
training or when any required critical training is eight weeks or more past due. MOM
will employ one supervisor and one employee who have successfully completed a Cal-
OSHA 30-hour general industry outreach course offered by a training provider that is
authorized by an OSHA Training Institute Education Center to provide the course.
MOM’s general employee training includes:
• Employee Handbook and The Injury and Illness Prevention Program
• Conduct Standards and Discipline
• Discrimination, Harassment, and Violence
• Health, Safety and Emergency (including COVID-19 precautions)
• Corporate Communications and Technology Systems
• Retail Operation Procedures & Compliance
• Sanitation Procedures
• Local and State Law, Licensing and Enforcement & Violations
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• Inventory Tracking and Management Regulations
• Waste Handling, Management, and Disposal
• Security and Surveillance Requirements
• Permitting Inspections by Enforcement Authorities
• Maintenance of Records
• Packaging and Labeling Requirements
First aid kits will be kept in the service/employee break room area and in the Manager’s
office.
Thank you for the opportunity to provide this safety report. Please contact our office with
any questions.
Sincerely,
Jack Collings, F.P.E., CA. 1545
MEGAN’S ORGANIC MARKET
851 E Fern Ave
Fresno, CA 93728
SENSITIVE – PHALANX INTERNATIONAL – SENSITIVE
Page 1
MOM FR LLC
DBA “MEGAN’S ORGANIC MARKET”
SECURITY PLAN
6-1
KEY TAKEAWAYS
Revitalization of a Blighted & Vacant Building
No Sensitive Uses Nearby
New Parking Lot with Ample Parking
MOM’s Fresno location
is perfectly located
for convenience with
positive impacts.
01-B. Commu-nity Relations Plan
6.
LOCATION
6-2
6.1 Description of Location
MOM proposes a medical & adult-use cannabis retail storefront at 851 East Fern Ave, Fresno,
CA 93728, APN: 451-264-04, Zoned: CMS. The vacant and blighted property consists of multiple
adjacent commercial spaces and a dirt lot in the heart of the Tower District at the corner of E. Fern
Ave and N. Maroa Ave. Associated addresses are: 851, 855, 857, and 861 E. Fern Street. The
combined units total approximately 4,464 square feet of retail space and the site has historical
heritage that MOM seeks to revitalize. A complete overhaul of the property is proposed, including
but not limited to:
• Complete facade rehabilitation and major interior renovations
• Visual blight removal
• Beautifying the property through drought tolerant landscaping and wall climbing vines
• Creation of a new parking lot with 17 spaces
• A Net Zero Energy project through solar and energy efficient fixtures
• Three electric vehicle car chargers (including 1 Tesla charger) and a bike rack
• “Dark sky” compliant exterior lighting
• Rain water recapture system
• LEED certification
• Public art mural on the building along N Maroa Ave (contingent upon City approval)
As stated in the Zoning Inquiry Letter (P20-04368) included with this application, there are no
sensitive uses within 800 feet of the proposed location.
The project will be an upscale, world-class cannabis retail facility that fits in seamlessly with the
community. MOM’s proposal would actually decrease impacts on the community by removing a
blighted property that has consistently attracted criminal activity and for years has burdened law
enforcement. MOM’s complete renovation and the installation of advanced security equipment will
decrease crime and beautify the area, making it an ideal location for a cannabis retail storefront.
The facility plans coupled with MOM’s extensive experience and wholesome brand provide for an
unmatched customer experience that will become a showpiece for the city.
6-3
6.2 Current Site Photographs
Photographs of the existing conditions at 851 East Fern Ave, Fresno, CA 93728, APN: 451-264-
04 are below.
Above: Building view from corner of E Fern Ave and N Maroa Ave
Below: 1 of the units that is included in the proposed project, view from E Fern Ave
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Above: Building from N Maroa Ave
Below: Building overhang on E Fern Ave
6-5
Above: View of building off N Maroa Ave
Below: Rear of building off N Maroa Ave
6-6
Above: Vacant lot at rear of building, proposed for new parking lot
Below: Interior condition
7-1
7.
COMMUNITY
BENEFITS AND
INVESTMENT PLAN
On a mission to
make the world a
better place, starting
right here, in our
community.
KEY TAKEAWAYS
1% of Gross Revenue to Local Non-Profits and Causes
Additional 1% of Gross Revenue to Create a Tower District Park
Revitalization of a Blighted and Vacant Building
LEED Certified Green Building Renovations
Project Positively Enhances the Neighborhood
Contributions to the Fresno Community Reinvestment Fund
7-2
Community Fund
MOM will establish a permanent Community Fund
and will commit the equivalent of 1% of gross sales
to supply it quarterly. The Community Fund will be
dedicated to local nonprofits and community groups,
like Fresno Police Activities League, Fresno Fire
Chief’s Foundation Explorer Program, Friends of the
Tower District, Tower Theatre for the Performing Arts,
GSA Network, Professional Women’s Resource,
Social Responsibility
youth substance abuse prevention programs, and other organizations/efforts which directly benefit
the residents of Fresno. MOM projects that this fund will generate over in contributions
in the first 12 months and then more than per year thereafter.
MOM will establish a Community Advisory Board to oversee distribution of the Community Fund
and to provide recommendations to MOM to improve its operations with regards to its impact
on the community. The Board will be made up of individuals appointed based on their strong
community ties and their personal and professional experience with community benefit work.
MOM will consult with the City when seeking board members. Members of the Board will meet no
less than quarterly to discuss best use of funds, which will be distributed based on Board direction.
Additional 1% to Support a Tower District Park
MOM is committed to supporting Tower District resident’s efforts for the establishment of a
community park. MOM USA LLC the parent company of MOM FR LLC will make a one-time
contribution to the City of Fresno upon MOM Fresno’s grand opening to fund a feasibility study
or other study deemed necessary by the City. Further, MOM will commit the equivalent of an
additional 1% of gross sales to fund park efforts (this is in addition to the 1% Community Fund
contributions explained in the previous paragraph). If a park is established the contributions would
then fund ongoing maintenance and upkeep.
Community Service Employee Sponsored Hours
Additionally, MOM will commit to providing a minimum of 50 company-sponsored employee
community service hours per month. Service hours will be used to support local nonprofits and
other organizations or efforts that directly benefit the residents of Fresno such as highway cleanups,
neighborhood beautification efforts, farm worker support services, and more.
7-3
Community Involvement
In addition to volunteer service and financial contributions, participation in local nonprofit community
and professional organizations is a key part of MOM’s Community Involvement Plan. MOM will
be an active participant in local community-focused nonprofit organizations. MOM has been an
active member of the Morro Bay and San Luis Obispo Chambers of Commerce for 7 years and
has a long track record of community involvement. MOM has participated in the Central Coast
Cannabis Council, Neighborhood Watch Association, Citizen Planning Academy, UCLA Women in
Cannabis, League of Women Voters, National Association of Women Business Owners, and many
other organizations. MOM’s San Luis Obispo storefront has conducted creek cleanups, hosted
dinners at the homeless shelter, sponsored veterans events, and more.
Community Outreach
As a leader in the evolving cannabis space, MOM has a duty to build a foundation for successful
integration of its industry into mainstream culture, and this begins with establishing positive long-
term relations with our immediate neighbors and greater community. To ensure our neighbors and
community members have an avenue to voice their concerns and questions, MOM has appointed
a Community Outreach Manager.
We wish to know our neighbors and head off any potential issues, so MOM commits to sending
letters of introduction and invitation to every residence and business within 500 ft of proposed
dispensary location. MOM also commits to hold quarterly town-hall style meetings for community
members to express concerns and get their questions answered. MOM’s Community Liaison will
provide updates, answer questions, and address concerns directly during regularly held in-person
or virtual meetings, as well as offer a dedicated Community Blog on the MOM website to address
and respond to topics that arise so responses can be publicly viewed. Any community complaints
received will be logged and brought to all MOM Management’s attention. Any flagged concerns
will be addressed within 24 hours of initial receipt of concern.
Significant Tax Revenue & Economic Impact
MOM will generate increased sales and property tax revenue associated with the project, and
MOM’s commitments to local brands will also result in economic benefit throughout the local supply
chain. Further, any non-cannabis supplies purchased by MOM will be sourced from vendors within
Imperial County whenever possible to further boost economic benefits. MOM’s employees are
also paid living wage jobs that help boost consumer spending within the local economy.
Spanish Language & Disability Support
Spanish speakers are often an overlooked customer segment, but need medical cannabis at
the same rates as all other. To promote inclusiveness and access, MOM commits to having at
7-4
least 1 staff member on site at all times who is a fluent Spanish speaker. MOM also provides its
educational materials in Spanish language versions, including its website based content.
MOM also commits to have at least 1 staff member on site at all times who is fluent in sign
language to assist those customers with hearing disabilities. All staff will be trained on how to serve
customers who have disabilities or speak a language other than English. MOM’s commitment
to inclusiveness can be seen in practice at MOM’s San Luis Obispo storefront where Spanish
speakers and those fluent in sign language are employed.
MOM will make special efforts to achieve high levels of diversity and gender parity among its staff
(and pay rates), and to provide a welcoming retail environment for all customers regardless of
race, gender, sexual orientation, etc. MOM’s hiring managers will use inclusive hiring practices
designed to reduce discrimination. MOM will host yearly training seminars for its employees with
a goal of identifying unconscious biases and reducing workplace discrimination. MOM will also
provide scheduling flexibility to those with young children.
Diversity and Inclusion
MOM will make special efforts to achieve high levels of diversity and gender parity among its staff
(and pay rates), and to provide a welcoming retail environment for all customers regardless of
race, gender, sexual orientation, etc. MOM’s hiring managers will use inclusive hiring practices
designed to reduce discrimination. MOM will host yearly training seminars for its employees with
a goal of identifying unconscious biases and reducing workplace discrimination. MOM will also
provide scheduling flexibility to those with young children.
Yearly Expungement Clinics
At least once per year MOM will host an expungement clinic to help those impacted by cannabis
prohibition to clear their records. MOM will burden the cost of such clinics and will advertise the
clinics widely in advance.
Cooperation with Other Permit Winners
MOM will organize with other cannabis permit winners to form a local association to better address
any issues that arise from the industry.
MOM FR LLC 7-5
SLO Citizens Planning Academy Estero Bay Community United Blood Services Morro Bay League of Women
Radio Neighborhood Watch Voters
SLO Parks and Rec Friends of the Library Morro Bay Skateboard Museum SLO Chamber of Commerce
Morro Bay Chamber of Commerce KCBX Public Radio Central Coast Cannabis Council Leadership SLO
Morro Bay Open Space Alliance Earth Day Alliance of SLO Adopt-a-Highway
Community Partners
Below are some organizations MOM has worked with in the past.
7-6
PRIME SHELF-SPACE
LOCAL - FRESNO COUNTY
FREE
MOM commits to carrying as many local
brands and those that are owned by social
equity individuals or from underrepresented
groups, as are commercially available
at our quality standards. While many
retailers charge for prime shelf space,
MOM will prioritize such shelf space for
local brands at no cost. To further support
local producers and local jobs in the supply
chain, MOM will create special displays that
tell the stories of Fresno County operators,
all free of charge. It is anticipated that
these “storyboard” type displays will help
them stand out from more prominent
brands in the marketplace, boosting their
sales. MOM truly values buying local.
More Than Median Labor Peace AgreementOver Minimum
Yes
Average Pay Wage Floor
Employee Benefits
Yes
LOCAL CONTRACTORS
FRESNO COUNTY
100%
MOM commits to hiring local contractors to
complete tenant improvements for the retail
storefront. MOM will also require the general
contractor to use local sub-contractors.
LOCAL HIRE
FRESNO COUNTY RESIDENTS
90%
MOM cares deeply about making a positive
economic impact on our community. Therefore
MOM FR LLC commits to employing 90% Fresno
County residents. Even further, MOM will give
preferential hiring to Fresno City residents with
a minimum goal of 50% of all employees being
residents of the City of Fresno.
Local Workforce Benefits
7-7
Green Practices
• MOM strives to minimize its carbon footprint
• MOM has applied for Green Business Certification through
the CA Green Business Network, and commits to achieving
full certification.
MOM is committed to environmental stewardship and climate action. MOM’s proposed
project is energy efficient and will achieve net-zero energy usage.
MOM will install photovoltaic panels in a quantity that is sufficient to offset the energy
usage of the retail operation. MOM will retain a qualified professional to perform
an energy analysis during the land use and building permit phase of this project to
identify the exact specifications of the system.
Solar Panels
MOM’s proposed HVAC and odor control system discussed in the Odor Control Plan
is highly energy efficient and has been used in LEED certified buildings. The unit
uses only electricity, reducing the use of fossil fuels (no natural gas). MOM will also
use the most energy efficient water heating system commercially available.
HVAC & Water Heating
All of MOM’s interior and exterior lighting will utilize energy efficient LED bulbs.
Electronic senors (time, light, motion, etc.) will also be utilized where possible.
LED Lighting
MOM will utilize dual pane glazing on windows (with bullet resistant film) and may
install enhanced insulation throughout the building to reduce heating and cooling
energy use. All aspects of the building shall follow the CA Green Building Code.
Contractors will be required to follow green building practices.
Insulation, Windows, Etc.
7-8
MOM will install three electric vehicle chargers in the parking area, including 1 Tesla
charger. These spaces will be reserved for EV vehicles only and charging will be free
of charge to customers.
Electric Vehicle Chargers
In alignment with CA’s climate action goals, MOM has a goal for this project to have
net zero energy use. MOM will retain a qualified professional to oversee this aspect
of the project and achieve certification.
Net Zero Certification
Building and site improvements will be LEED certified.
LEED Certification
Provided for refilling re-usable water bottles near the check-in area.
Water Refill Station
All restroom fixtures shall be water conserving low-flow fixtures including the faucet
and toilet. The toilet will also be equipped with a “dual flush” to further conserve
water. The faucet shall be equipped with a timed motion sensor to reduce water
usage.
Low-Flow Fixtures
All drought tolerant plants that require little to no watering. Any required watering will
be delivered through a drip irrigation system.
Drought Tolerant Landscaping
A small rainwater capture system to supply the drip irrigation system. The rainwater
capture system will collect water flowing from the building’s gutters.
Rainwater Capture System
7-9
Blighted & Vacant Building
MOM’s proposal would revitalize a long vacant and blighted property. The site has consistently
attracted criminal activity and for years has burdened law enforcement. MOM’s complete renovation
and the installation of advanced security equipment will decrease crime and beautify the area,
making it an ideal location for a cannabis retail storefront. The building has a rich history, being
the original location of Cafe Midi, a coffeehouse/bookstore/music venue that became a cultural
hotspot in the 1960’s. MOM will restore the heritage of the building and preserve it’s historical
features. Further MOM will convert the vacant lot at the rear of the building into a new parking lot,
and create a public art mural along the N Maroa Ave side of the building (contingent upon City
approval).
7-10
Conceptual Exterior Rendering
MOM will work with the Fresno Historic Preservation Commission
on final design if awarded a permit.
Conceptual Interior Rendering
7-11
MOM has created a New Customer Guide that all first time customers
receive. This guide includes basic information about cannabis dosing,
methods of ingestion, local and state rules, and risks of youth use of
cannabis that identifies resources available to youth related to drugs and
drug addiction, and many other topics. This handbook also highlights the
local community and local businesses.
New Customer Guide03
MOM has created educational pamphlets available to customers on sub-
jects such as: hazards of driving under the influence, safe dosing, edu-
cation about vaping, health warnings and risks of youth use of cannabis
that identifies resources available to youth related to drugs and drug ad-
diction. etc.
Educational Pamphlets02
MOM will host in-store tours and workshops with a focus on dosing,
potency, modes of ingestion, safe use, secure storage, local and State
regulations, and risks of youth use of cannabis that identifies resources
available to youth related to drugs and drug addiction. These events will
occur once per quarter at minimum, with a goal of once per month.
In-store Educational Tours and Workshops01
Education Plan
Educational signs about the hazards of driving under the influence of
cannabis will be displayed in parking lot area. In the dispensary retail
area, MOM will display signs that direct customers to the copies of the
educational pamphlets and New Customer Guide described below.
Signage will include Prop 65 warnings, no use of cannabis on site signage,
no opening of cannabis products onsite signage.
Educational Signage04
7-12
MOM will promote responsible cannabis use by: providing low-dose op-
tions, ensuring that all messaging on packaging is accurate and thor-
ough, posting information about Cannabis Use Disorder and the potential
negative side effects on the brain development of young adults, adoles-
cents, and minors.
Continued Promotion of Responsible Use06
Seniors and first time users have traditionally made up a large part of
MOM’s clientele, therefore patient/consumer consultations are essential
to determining which products are appropriate for a given individual’s
needs. MOM will readily offer free patient consultations to all customers.
Additionally, MOM will run a specialized medically-focused appointment-
only free consultation program to further assist those with debilitating
medical conditions. This program is run by medical professionals with
deep knowledge of cannabis’ medical effects.
Specialized Consultation Program07
MOM’s website will feature an ‘education’ section including media and
short videos describing: modes of ingestion, time of onset/duration of
effects, risks associated with use by minors, possible risks associated with
using cannabis while pregnant or nursing, Cannabis Use Disorder, and
other health concerns. It will also list resources available to youth related
to drugs and drug addiction. Product listings with detailed information will
also be available for customers to research or order ahead.
Online Educational Materials05
7-13
Promoting & Teaching Responsible Use to Reduce Risk of Dependence
Cannabis use disorder (CUD), also known as cannabis addiction or marijuana addiction, is defined
in the fifth revision of the Diagnostic and Statistical Manual of Mental Disorders (DSM-5) and ICD-
10 published by World Health Organization as the continued use of cannabis despite clinically
significant impairment, ranging from mild to severe. MOM will offer a voluntary tracking program
to first time customers to help control their cannabis use. Through this program, customers can
select weekly quotas for the maximum amount of MG of THC and the maximum amount of cannabis
flower to support them in moderating use. To achieve this, MOM will make a note of the customer’s
determined maximums on the customers account, a MOM employee will then be able to review
the previous seven days of receipts to determine if that customer has reached their maximum. We
also offer a pamphlet on Cannabis Use Disorder and Cautions including the risk of cannabis use
for the development of the adolescent brain.
Visual Media - Customer Education
MOM will source Goldleaf brand educational posters including the cannabinoid education poster,
the endocannabinoid system poster and the terpene educational poster (image on left). Terpenes
are a class of chemicals that influence the effects of cannabis and are given credit to the variety
of effects this plant can provide the user.
MOM has also developed a number of in-house educational materials including:
• Think Low and Slow: Cannabis Edibles
• Marijuana+Driving=Danger
• Vape 101: How to correctly use and care for your vape
pen
• Dangers of Cannabis Use Disorder (CUD)
• Cannabis Safety
MOM strives to support customers in having a positive
experience with cannabis use. Employees and in store
pamphlets emphasize preventing the consumption of too
much cannabis, especially too much of an edible product.
Ingesting an excess of cannabis, although generally safe,
may be an uncomfortable and unpleasant experience
for some customers. MOM takes responsibility to do its
part in preventing such incidents. MOM is committed to
providing resources and knowledge to prevent unpleasant
or potentially dangerous outcomes when using cannabis.
Email marketing will contain educational information and
articles.
7-14
Fresno Community Reinvestment Fund
MOM will donate at least per month to the Fresno Community Reinvestment Fund in
support of local equity businesses operating under Article 33 Section 9-3315(b)(6). This is in
addition to MOM committing to be a Social Equity Business Incubator. MOM COO Nick Andre has
experience working for a business incubator run by the Cal Poly Small Business Development
Center and Cal Poly Center for Innovation and Entrepreneurship. While working there he provided
business development and technical assistance to dozens of local small businesses and start-
ups. These services were free of charge to the business owner as part of economic development
efforts. Nick, and the MOM team, are willing to offer the same services to social equity businesses
in Fresno.
MOM looks forward to supporting local equity businesses in the areas of workforce development,
access to affordable commercial real estate, access to investment financing, and access to legal
services and business administration technical assistance through its committed monetary and
service donations.