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CSE-20-8 Fresno Canna Co Redacted
Social Policy and Local Enterprise Plan fresnocannaco.com lF~~~OO (ID ~&0000 & ~(IDa SINCE 2021 Table of Contents 2. Social Policy and Local Enterprise Plan 2.1 Commitment for Paying Employees a Living Wage 3 2.2 Employee Benefits 3 2.3 Compensation for Continuing Education 3 2.4 Social Policy & Local Enterprise Plan 4 2.5 Local Ownership & Management Statement 4 2.6 Staffing Plan 5 2.7 Employee Labor Peace Agreement 8 2.8 Workplace Plan 9 2.8.1 – Workforce Development Plan 9 2.8.2 – Apprenticeship/Continuing Education Plan 9 2.8.3 – Living Wage Commitment 9 2 2.1 Commitment to Paying Employees a Living Wage Fresno Canna Co. is committed to the community we serve, and part of demonstrating that commitment is by providing a living wage to all employees. Investing in our employees is an investment in our company. Fresno Canna Co. is committed to attracting the best local talent in the industry by offering livable wages, generous employee profit shares and bonuses, robust advancement opportunities, and annual wage increases. Within our budget, we have allocated sufficient funding to offer competitive wages that will aid in allowing our employees the ability to not just survive but to thrive and have the resources necessary to contribute to the local economy. All staff are employed full-time with full benefit plans and a starting wage of at least $ per hour for entry-level budtenders and up from there with an annual increase of 5%. This rate is above the living wage and projected pay rate for budtenders in Fresno, and well above the $12 per hour minimum wage. All positions will pay competitive wages with a 5% annual increases and profit shares. Declined social equity applicants will be given hiring priority, along with those who meet the social equity guidelines for Fresno and have been disproportionately targeted by marijuana laws. We are hiring 100% local residents, with priority given to District 1 residents. 2.2 Employee Benefits Eligible employees will have access to more than just a living wage. Fresno Canna Co. understands that healthy employees are good employees and we are therefore committed to providing a full suite of potential benefits. All employees will be employed full-time with full benefit plans. Benefits include: -Paid Time Off -Employee revenue share and bonuses -Competitive Health, Dental, and Vision insurance options 2.3 Compensation for Continuing Education Education is the foundation upon which strong communities are built. As an added bonus, eligible employees will be given an annual allocation to apply towards continuing education and professional development opportunities. This may include attendance to industry trainings, seminars, and conventions intended to accelerate learning and develop a more knowledgeable well-rounded staff. 3 As part of our Community Benefits & Investment Plan, we are inviting expert speakers to provide free trainings to the public and our employees on topics pertaining to financial management, investment, entrepreneurship, and general professional development. 2.4 Social Policy & Local Enterprise Plan Three members of the Fresno Canna Co. ownership team are from Fresno and will seek to target and conduct recruitment efforts that we not only remain compliant but exceed the targets set forth in Social Policy SEC. 9-3316(b)(1). By pursuing prospective employees in the community in which we will be serving we will not only have improved prospects for finding the necessary talent but also the individuals we do find will have a shared interest in serving their local community. We are committed to hiring a minimum of 75% of our staff members locally. 2.5 Local Ownership & Management Statement It is our intention that Fresno Canna Co. will be an entirely locally managed and operated enterprise. The initial capital and funding will be provided by the ownership that all have local ties, and as new roles are hired, including director, management, and entry-level positions, we will stay true to our commitment to hiring a minimum of 75% local staff. Fresno Canna Co. has secured a lease to operate a dispensary. It is important to us for our staff to reflect the diverse community we serve. We are also opening the first hiring opportunities to applicants who applied but were not awarded a license through the cannabis social equity program, as well as those who fit the criteria for social equity status. 4 2.6 Staffing Plan Fresno Canna Co. will control startup costs by having three of the owner-operators hold roles without salaries, including operations director, inventory manager, and store manager. With the owners’ direct dispensary management experience and vested interest will ensure the success of the business. As revenues grow within the first 9 months of operations, the company will staff and train an outside store and inventory manager to assist the owner-operators, and additional roles will be hired as customer demand grows. The following are job descriptions for the positions we will be hiring for in the first 18 months of operating. Management and entry-level roles will continue to be hired as needed. Operations Director (1) The Operations Manager will be responsible for managing all day-to-day operations of the dispensary in accordance with the State of California, the City of Fresno, and standards set by Fresno Canna Co. They are responsible for the overall profitability of the dispensary. The Operations Manager provides support to all other employees of the company which includes: scheduling, training, providing policy and procedure updates, and keeping updated with industry news and product information. Their core responsibilities include the following: ●Responsible for managing dispensary staff, schedules, inventory, and customer relations ●Serves as a role model and resource for dispensary staff concerning products and services, policies and procedures, industry news, and regulatory changes ●Responds to all agent questions, concerns, or suggestions and takes action when necessary to resolve conflicts ●Responsible for delegating tasks to Inventory Managers, Budtenders, and 5 Inventory Manager Assistant Manager/ Budtender Operations Director Budtender / Receptionist Delivery Driver Inventory Associates in order to maintain a compliant and clean facility ●Coordinates with the upper management to ensure accurate information is communicated to dispensary staff ●Provides superior customer service for vendors and customers ●Responds to all customer complaints, requests, concerns, suggestions, and takes action when necessary to resolve conflicts ●Oversees orders and deliveries to ensure accurate order information and timeliness of deliveries ●Maintain accurate records of all dispensary activities including daily cash reconciliations, customer records, sales, deliveries, and returns in accordance with the State of California, the City of Fresno, and the standards set by Fresno Canna Co ●Maintain inventory control system and perform daily counts of all cannabis and cannabis products in the facility ●Provide regular inventory, sales, and profitability reports to the rest of the Management Team. Inventory Manager (1) The Inventory Manager monitors and maintains records of materials in inventory, reconciles discrepancies in inventory, and notifies their supervisor of irregularities. They will also ensure that data is properly entered and maintained in Fresno Canna Co.’s ERP & Metrc to comply with all state and local regulations. The Inventory Manager’s core responsibilities include the following: ●Monitors and maintains inventory ensuing data is entered and accurate in Metrc and company software ●Investigates and resolves discrepancies and notifies supervisor of irregularities ●Receives, unpacks, and stores goods; restocking items as necessary; labels shelves and keeps goods organized ●Performs routine clerical duties, including but not limited to data entry and assisting other departments ●Prepares shipments containing regulated and non-regulated goods for distribution while ensuring compliance with all local and state regulations ●Performs miscellaneous job-related duties as assigned ●Regular and predictable attendance is an essential function of this position Store Manager (1) ●Accomplishes department objectives by managing staff; planning and evaluating department activities ●Maintains staff by recruiting, selecting, orienting, and training employees ●Ensures a safe, secure, and legal work environment 6 ●Develops personal growth opportunities ●Accomplishes staff results by communicating job expectations; planning, monitoring, and appraising job results ●Coaches, counsels, and disciplines employees ●Develops, coordinates, and enforces systems, policies, procedures, and productivity standards ●Establishes strategic goals by gathering pertinent business, financial, service, and operations information ●Defines objectives, identifies and evaluates trends and options, chooses a course of action, and evaluates outcomes ●Accomplishes financial objectives by forecasting requirements, preparing an annual budget, scheduling expenditures, analyzing variances, and initiating corrective actions ●Maintains quality service by enforcing quality and customer service standards, analyzing and resolving quality and customer service problems, and recommending system improvements ●Contributes to team effort by accomplishing related results as needed Assistant Manager / Budtender (2) The Assistant Manager is responsible for implementing and supporting the Operations Manager and the Store Manager. The Assistant Manager’s duties include but are not limited to the following: ●The Assistant Manager will ensure that store personnel provides exceptional customer service. This includes answering questions and assisting with product selection, purchases, as well as handling any disputes ●Will help ensure that the store is clean, well organized, and properly merchandised ●Will be responsible for making sure that all store policies, procedures, and controls are followed ●Will coordinate and oversee the planning, organizing, and delegating of work among staff Budtender / Receptionist (3) The Budtender is responsible for assisting in meeting the company’s mission of providing the highest quality service and cannabis to our consumers in a comprehensive wellness setting, including customer education and support, drug abuse awareness, and social interaction opportunities. Budtender job duties and responsibilities may include, but are not limited to the following: ●Providing compassionate customer support ●Verification of customer age eligibility to purchase from our dispensary ●Assisting customers in selecting cannabis products 7 ●Responsibility for accompanying any individual present in the dispensary at all times ●Recording and processing customer cash transactions ●Must comply with disciplinary guidelines and work rules as outlined in the employee handbook with special emphasis on safety and security in the workplace ●Must participate in performance evaluation every 6 months ●Always carry cannabis employee Identification Card when on duty ●Retail floor organization and cleaning Delivery Driver (3) The Delivery Driver is responsible for securely delivering and fulfilling orders to customers who have placed orders through Fresno Canna Co.’s online ordering platform. The Delivery Driver’s duties include but are not limited to the following: ●Will verify the identity and age of any customer they are delivering orders to ●Ensuring consistent functionality of Fresno Canna Co.’s route and delivery software platforms ●Assisting Security Personnel with the upkeep and maintenance of Fresno Canna Co.’s delivery vehicle safety equipment. Armed Security Guards If awarded a cannabis business permit, we will contract a security company to provide an armed security guard on the premises at all times while in operation including opening and closing to ensure the safety of our staff and customers. 2.7 Employee Labor Peace Agreement Fresno Canna Co. intends, as operations scale, to have five or more employees and per Social Policy SEC. 9-3316(b)(2) will execute an applicable Labor Peace Agreement within thirty (30) days of the hiring of our fifth (5th) employee. 8 2.8 Workplace Plan 2.8.1 – Workforce Development Plan Consistent with our stated purpose, Fresno Canna Co. is committed to exceeding all minimum requirements set forth in the relevant articles outlining Cannabis Retail Businesses. As such, with our intent to target recruitment in and around the communities that we serve we have committed to hiring 100% of local hires with a preference given to District 1 residents. 2.8.2 – Apprenticeship/Continuing Education Plan Pursuant to SEC. 9-3316(b)(3)(ii), Fresno Canna Co. will offer apprenticeships and continuing educational opportunities pertinent to the legal cannabis industry. These include but are not limited to educational events, education material production and dissemination, and apprenticeship opportunities and training for local residents. 2.8.3 – Living Wage Commitment Pursuant to SEC. 9-3316(b)(3)(iii), Fresno Canna Co. will provide a living wage for all employees. 9 Neighborhood Compatibility Plan fresnocannaco.com ~[RU~~OO (ID ©~0000~ (fg(IDg SINCE 2021 Table of Contents 3.1 Addressing Local Complaints 3 3.2 Community Integration Plan 3 3.3 Odor Mitigation Practices 4 3.4 Potential Sources of Odor 4 3.5 Odor Control Devices & Measures 4 3.6 Staff Odor Training & System Maintenance 6 3.7 Waste Management Plan 6 2 3.1 Addressing Local Complaints Fresno Canna Co has secured a lease in a busy prime location in the well maintained West Acres Shopping Center with large retailers including Food Maxx grocery store. This is a major advantage due to foot traffic and exposure. It’s close to the freeway and includes great signage. The storefront and store will have a classy yet modern, clean appearance and will add to an upscale community presence. We have a responsibility to our fellow tenants, employees, customers and community members to maintain a clean, safe and pleasant environment. Vagrancy, loitering, loud and disruptive behavior will not be tolerated. We will have armed security guards on the premises at all times, with safety protocols in place. Complaints such as noise, light, odor, litter, vehicles and pedestrian traffic will take them seriously and addressed expeditiously. We will work with our community and fellow tenants to maintain respectable reputations and relationships. 3.2 Community Integration Plan Fresno Canna Co. seeks to be an asset and a beneficial resource for the surrounding community. We will seek neighborhood feedback and other necessary input through every phase of our operation. Fresno Canna Co. will establish contact with all neighboring businesses and provide them with the contact information of all of our operators in order to notify us of an issue. In addition, The Fresno Canna Co. website will have a portal for individuals, including our employees to confidentially report any grievances with the business or its employees. We will seek to address all issues within 48 hours of receipt. Fresno Canna Co. also believes that being a good neighbor requires that we work to improve the neighborhood. Some of the public improvements we plan to address are: ●Access Improvements ●Landscape Improvements ●Lighting Improvements ●Code Compliance ●Neighborhood Safety 3 3.3 Odor Mitigation Practices Pursuant to SEC. 9-3316(d)(4), Fresno Canna Co. will build out the retail dispensary in a manner that discreetly prevents odors from escaping to surrounding properties and spaces. Upon awarding of a cannabis business permit, Fresno Canna Co. will contract to have a ventilation system installed that will be inspected on a weekly basis. Light cleaning and maintenance will be performed regularly, or as necessary when indicated by the weekly inspection. Heavy cleaning should be completed at least twice per year by a professional HVAC provider. The Maintenance Manager performs a visual sanitation inspection after light cleaning and maintenance is completed by assigned distribution personnel. It is the responsibility of the Maintenance Manager to adopt, implement, and monitor the enforcement of Ventilation System Cleaning and Maintenance SOP and to document the findings and any corrective actions in the Facility Maintenance Log. 3.4 Potential Sources of Odor The most likely sources of odor in the Fresno Canna Co. dispensary will be from the product vault, the product intake room, and the product sales (display) floor. Pursuant to SEC. 9-3316(j), Fresno Canna Co. will prioritize the buildout and operational effectiveness of odor mitigation equipment covering these locations. 3.5 Odor Control Devices & Measures Pursuant to SEC. 9-3316(j)(1), Fresno Canna Co. will install and build-out an exhaust air filtration system to ensure the odor is filtered. Pursuant to SEC. 9-3316(j), Fresno Canna Co. will utilize the following industry best equipment to capture and prevent odors from escaping outside the facility, to supplement the exhaust air filtration system. HEPA Filters Fresno Canna Co. will install and maintain High-Efficiency Particulate Air (HEPA) filters. HEPA filters provide a high level of filtration and air purification applications to control airborne particulate levels. To meet the U.S. standards for HEPA classification, a filter must capture 99.97% of contaminants at 0.3 microns in size. This size of micron is especially pertinent to the potential sources of odor packaged cannabis flower, extracts, and manufactured products can potentially emit. 4 All air-handling units throughout the Fresno Canna Co. facility will include commercial HEPA filters. Not only will HEPA filters be used for odor control, but also to capture environmental contaminants by capturing airborne particulates, infectious agents, and pests, if present. HEPA filters will be maintained and replaced in accordance with manufacturer recommendations. Ultraviolet Light Emitters UVC, or Ultraviolet light with wavelengths measuring between 200 to 280 nanometers, has proven to be a powerful air disinfectant. As Fresno Canna Co. will be installing ultraviolet light emitters in front of HEPA filters in the facility’s return ducts; no customers, employees, or bystanders will be exposed to UVC. Ozone Generator Ozone generators produce ozone, which attaches to odors, mold, mildew, bacteria, microorganisms, and other pollutants in a space, if present, and oxidizes them. This process purifies the air and leaves the respective space odor and contaminant free. If all ozone molecules are not used in oxidation, they then convert back to oxygen after approximately one hour. Ozone generators are effective at eliminating strong odors and contaminants such as mold spores in contained non-occupied spaces but are not approved for use in occupied spaces due to potential health hazards in very high concentrations. Though high concentrations of ozone will not be generated, commercial ozone generators will be installed and used in only non-occupied spaces in order to comply with federal regulations of ozone and promote employee and customer safety. Activated Carbon Filters Carbon filtration utilizes activated carbon (i.e., charcoal) to remove contaminants, impurities, and odors through the process of chemical absorption. As odor-producing gases come into contact with activated carbon contained in the filters, they are absorbed, trapped, and held in millions of microscopic carbon pores. As a result, impurities and odors are greatly reduced. 5 <E3 d!IIP d d ' Fresno Canna Co will install active carbon filters at all air exhaust points from the facility, ensuring that cannabis odor particles leaving the facility will be trapped. Active carbon filters were selected due to their improved ability over particulate filters, to remove exceptionally small particulates (less than 0.01 microns) such as vapors and gases. Active carbon filters are also widely regarded as a safe method to remove odors. Activated carbon filters stop working when the aforementioned carbon pores are filled, so Fresno Canna Co. will periodically replace the filters as directed by the manufacturer. This responsibility will be undertaken by the Manager. 3.6 Staff Odor Training & System Maintenance For all equipment pertaining to odor management, Fresno Canna Co. employees will be trained to maintain and/or replace equipment according to manufacturer recommendations, and relevant local, state, and federal regulations. 3.7 Waste Management Plan To dispose of cannabis materials, Fresno Canna Co. employees will be instructed to follow the following steps to contain, render, and dispose of cannabis waste. A. Containing the Cannabis Waste: 1.Check to make sure each biohazard waste container is affixed with all the required batch and weight information before placing any waste scheduled for destruction within the container. 2.Place all cannabis and cannabis plant material that is to be rendered into cannabis waste in separate biohazard waste containers in the designated cannabis waste holding area. 3.Mark all containers that are storing expired, damaged, deteriorated, misbranded, adulterated, or opened cannabis "WASTE PRODUCT TO BE DESTROYED". B. Rendering Cannabis Waste Once destruction has been approved, two Fresno Canna Co. employees will be assigned to render cannabis into cannabis waste and by doing the following: 1.Remove cannabis from the designated cannabis waste holding area and transport it to the destruction area. 2.Remove or separate the cannabis goods from any packaging or container, if 6 applicable. 3.Weigh the cannabis on a scale, and record the weight in Fresno Canna Co.’s internal seed-to-sale tracking system and Metrc. 4.Wear protective goggles, work gloves, and, if necessary or desired, other personal protective equipment. 5.Grind cannabis with a high-powered blender until it is unusable and unrecognizable. 6.Mix and incorporate the ground cannabis with non-consumable solid wastes such that the resulting mixture is at least 50 percent non-cannabis by volume. C. After Waste is Made Unusable and Unrecognizable: 1.Inspect the ground and incorporated cannabis waste to ensure that it has been rendered unusable and unrecognizable 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. 2.Keep the rendered cannabis waste in a secure waste receptacle in possession and control of Fresno Canna Co. until the waste is disposed of by an authorized waste hauler. Ensure that the area where cannabis waste is held is restricted to authorized Fresno Canna Co. employees and an authorized waste hauler. 3.Document all cannabis waste in the Waste Log. 4.Record other necessary information regarding the cannabis waste rendering activity in Metrc. 7 Community Benefits & Investment Plan WlRU~~OO[ID ~~0000~ ~[ID0 SINCE 2021 fresnocannaco.com Table of Contents 7.1 Social Responsibility Plan 3 7.1.1 Expungement Clinics and Outreach Service Plan 4 7.1.2 Environmentally Sustainable Business Plan 4 7.1.3 Utilization of Underserved City Property 5 7.2 Public Health Outreach & Education Plan 5 2 7.1 Social Responsibility Plan Our vision for supporting equity, diversity, and social sustainability begins with our partnership team, which is made up of diverse professionals, all of which are people of color and half of which are female. We define equity as providing opportunities to community members that may not have otherwise had access, and we enthusiastically own our part in countering the inequalities that continue to impact disadvantaged communities. Fresno Canna Co. has secured a lease to operate a dispensary in a diverse community and it is important to us that our staff reflect the diverse community we serve. Therefore, our hiring plan strongly encourages diversity, we are committed to hiring a minimum of 75% of local hires. We are also opening the first hiring opportunities to applicants who applied but were not awarded a license through the cannabis social equity program, as well as those who fit the criteria for social equity status. We are passionate about creating a thriving business that contributes to the city’s job market with liveable wages, that engages our customers with a hometown feel and upscale experience all at an affordable price point. All the while, giving back to the community with academic opportunities, investment, and philanthropy, including offering canna educational classes on a regular basis to members of the community on a monthly basis. We have a two phase plan on how we will address our social responsibility to the community. Phase I (starting in year 1): During our start up phase we will identify a minimum of 3 community-based organizations to provide financial support, and will dedicate 2% of all revenues. Our aim is to support organizations that support the issues we are passionate about impacting. Organizations under consideration include: The Fresno Community Reinvestment Fund - Supports local equity businesses operating in the City of Fresno. 3 CRF DJ USA ~ Community Justice Alliance - An advocacy group that assists in community healing and litigation for racial injustice and immigration rights. https://www.cjaca.org/ Namaste for Compassion - The mission of Namaste for Compassion is to teach yoga and mindfulness as mental health tools to alleviate trauma including juvenile hall centers and vulnerable communities. www.namasteforcompassion.com Phase II (starting in year 3): We will launch the Fresno Canna Co. Incubator. (FCCI) This is a program that will invest an annual portion of our profits (2%-4%) to specifically incubate impacted individuals who have empowering community-based business concepts. The initiative will begin with 2 annual awards/participants and grow as the Fresno Canna Co. grows. FCCI participants will go through a 12-week all-access, paid internship with behind-the-scenes entrepreneurial training, consultation, and start-up funds. FCCI will seek to work with the City of Fresno to identify and utilize vacant city buildings and/or land first for the business development of FCCI participants. 7.1.1 Expungement Clinics and Outreach Service Plan We will organize and host expungement clinics on a quarterly basis while using this as an opportunity to connect with community members and inform them of the entrepreneurship, professional development training, and job opportunities within the company. 7.1.2 Environmentally Sustainable Business Plan As climate change continues to have damaging impacts upon our planet, environmental sustainability remains a key focus for Fresno Canna Co. There are several key areas we are addressing in our business to combat this important issue: 4 COMMUNITY JUSTICE ALLIANCE 1.We are sourcing all packaging and paper related items from recyclable materials. 2.Weatherproofing our retail location and using energy-efficient appliances and LED bulbs. 3.We have incorporated into our lease the first right of refusal to purchase the entire building in the event of a sale. At that point, we will make all attempts to purchase the property and set higher eco-standards for tenants, such as retrofitting units with solar panels. 4.We will make a conscious effort to utilize electric vehicles for all deliveries. 7.1.3 Utilization of Underserved City Property Fresno Canna Co. is committed to improving any property that it conducts business within. This includes but is not limited to: retrofitting structural improvements, HVAC improvements, and maintaining a clean and safe environment for all customers, employees, and Fresno residents. 7.2 Public Health Outreach & Education Plan Fresno Canna Co. plans to provide public health outreach and education programs that outline risks of cannabis use to youth and identify youth-related drug addiction resources. We plan to team up with the Public Health Department and local organizations to sponsor events for them to conduct at local youth centers and high schools. 5 Retail & Delivery Dispensary Business Plan www.fresnocannaco.com Wlfil(E~OO(ID ~&0000& ~(IDD SI NCE 2021 Table of Contents Executive Summary 4 Business Plan 5 1.1 Owner Qualifications 5 1.2 Budget 7 1.3 Proof of Capitalization 8 1.4 Proforma 9 1.5 Hours of Operation; Opening & Closing Procedures 1 1 1.5.1 Dispensary Opening Process Standard Operating Procedures 1 1 1.5.2 Dispensary Closing Process Standard Operating Procedures 1 4 1.6.1 Description of Day-to-Day Operations 1 7 1.6.1 (a) Customer Check-In Procedures 1 7 1.6.1 (b) Receipt of Inbound Shipments 1 8 1.6.1 (c) Point of Sale System 1 9 1.6.1 (d) Estimated Customers Served 1 9 1.6.1 (e) Product Line & Assortment Plan 20 1.6.1.(f) Delivery Service Procedures 21 Exhibits Exhibit 1: Rogelio Mitchell Resume Exhibit 2: Janet Beauford Resume Exhibit 3: Linnelle Mitchell Resume Exhibit 4: Angie Benton Resume Exhibit 5: Edwin Benton Resume Exhibit 6: Nebyou Berhe Resume Exhibit 7: Proof of Capitalization Exhibit 8: Cal-OSHA Industry Outreach Course Statement Exhibit 9: Statement 3 Executive Summary Company Summary Fresno Canna Co. will be a local family owned and operated business that includes two verified social equity applicants.Our ownerships team has several years of direct dispensary and cultivation management experience and will continue to develop strong vendor relationships and strategic partnerships covering all areas of the cannabis industry. Our target customers are local Fresno residents who are looking for quality cannabis at affordable prices for recreational and medicinal purposes. Our Services Fresno Canna Co. is a retail and delivery dispensary located in the West Acres Shopping Center at 3257 W. Shaw Ave, one of the busiest streets in Fresno, and is well-positioned within a high traffic area. Along with the dispensing of cannabis flower and concentrates, Fresno Canna Co. will sell a wide range of additional medicinal cannabis infused products such as edibles and topicals. We will also sell a custom subscription box and offer free educational classes on safe and medicinal cannabis use to our local community. Our Mission Fresno Canna Co. mission is to sell quality cannabis products at an affordable price and to serve our community by providing regular educational classes on safe use practices, as well as to actively support entrepreneurial and economic enterprise within communities of color. Our Vision We intend to be the number one leader in Fresno in providing the community with friendly, personal, quality, affordable cannabis products and services, while balancing the impacts of social inequalities as a community leader, financing and supporting communities through outreach, education, investment, and professional and entrepreneurial development. 4 Business Plan 1.1 Owner Qualifications See the following exhibits: Exhibit 1: Rogelio Mitchell Resume Exhibit 2: Janet Beauford Resume Exhibit 3: Linnelle Mitchell Resume Exhibit 4: Angie Benton Resume Exhibit 5: Edwin Benton Resume Exhibit 6: Nebyou Berhe Resume The City of Fresno, the fifth-largest city in California, during the period of 2006 through 2008 arrested Black people at five times the rate of Whites. Blacks make up 7.7% of Fresno's population, but they are 24.6% of those arrested for possessing marijuana although cannabis use is evenly distributed between white and black people. The War on Drugs has severely and disproportionately devastated people of color, their families, and communities. Fresno’s Cannabis Social Equity Program provides a crucial opportunity to help offset the long standing effects of racial disparities that exist in the criminal justice system. Our vision for supporting equity, diversity, and social sustainability at Fresno Canna Co. begins with our ownership team. We are a local, family owned company made up of two social equity applicants, diverse professionals, all of which are people of color and half of which are female. Collectively, we bring a wide array of professional skill sets including dispensary management experience that will contribute to the success of the business. We define equity as providing opportunities to community members that may not have otherwise had access, and we enthusiastically own our part in countering the inequalities that continue to impact disadvantaged communities and people of color. The Fresno Canna Co. ownership team and their families and communities have been directly impacted by the War on Drugs which has contributed to their dedication and passion for community development and social justice causes as evident in their life’s work. As a team of entrepreneurs and social activists they truly exemplify the intention behind the Social Equity program. Collectively they are pooling their funds to start the company without the assistance of big retail names or outside investors. The team includes Edwin Benton who was born and raised in Fresno and has over 15 years of successful entrepreneurial and business management experience, with 5 a B.A. in Economics, and is well connected within the business community. He regularly volunteers to offer professional and financial mentorship to people of color. His wife Angie Benton, has keen expertise in community development and understands the importance of uplifting underserved communities by advocating for social responsibility, economic opportunities, and equitable resources. She possesses a Masters in Public Administration and has dedicated her career to working with counties, city governments, and non-profits in the arenas of economic development, social equity, and public health. Most recently Angie works for a nationally renowned research and action think tank geared towards mitigating the impacts of police brutality and inequality in the criminal justice system for communities of color. Nebyou Berhe, the childhood best friend to Edwin, was also raised in Fresno and graduated from CSU, Fresno. He has tirelessly advocated for the decriminalization of cannabis, prison reform, better housing opportunities for low-income Fresno residents, and police accountability. He understands the severity of how the war on drugs has impacted his community and knows that a dispensary focused on providing affordable quality products and community engagement is a great start to helping bend the moral arc towards justice and equality. Janet Beauford is one of two social equity applicants and is a proud and active local Fresno community member. Her family relocated from Arkansas to Fresno where she attended primary school all the way through graduating from Fresno City College. As a single mother, Ms. Beauford raised her family locally, with her children also graduating from Fresno schools including California State University, Fresno. She treasures her community and has built a broad network of friends and professional colleagues as a result of her career accomplishments and her commitment to charity work. For the last few decades, she has volunteered to cook and deliver food to elderly community members on the weekends and especially holidays. Sharing her home-cooked meals is her way of ensuring that the community elders know they are valued and cared for. Her greatest fulfillment is from engaging with people, and it has always been her dream to own a family and community centered business that provides opportunity and healing. Ms. Beauford has personally experienced the healing benefits of cannabis. In 2018 she was hospitalized after being blindsided by a 17-year-old drunk driver as she was leaving church. It took her 11 months to learn to walk again and to regain her independence. Cannabis helped her to avoid taking harsh pain killers with undesirable side effects. This experience has contributed to Ms. Beauford’s passion for the cannabis plant and her desire to bring its healing powers to others. 6 Rogelio Mitchell is also a City of Fresno Social Equity applicant, qualifying as result of a past cannabis conviction. As an in-law family member to Ms. Beauford, t hey strategically combined their efforts in submitting an application for a retail license because they recognized the power of a strong team and partnership. Rogelio’s family has been informally involved in cannabis cultivation for several years. He honed the craft of growing the crop with his family and has never viewed cannabis as a dangerous illicit drug, but rather as a healing plant with many benefits. Therefore Rogelio took the risk of growing the product as a means to provide for his family. . This being his first interaction with law enforcement was a traumatic experience that resulted in an unnecessary situation with a squad of police officers pointing guns in his face. Not only did he fear for his life at that moment, but in the aftermath he feared for his future. His life choices resulted in years of financial struggles due to loss of income, lack of job opportunities, and expensive legal battles. After that experience and realizing the consequences of his decisions, he took responsibility by working hard to piece his life back together. He made the decision to never put himself in that situation again. However, his love for the cannabis business never waned, so as the laws began to evolve he sought out new legal avenues to involve himself in the business. After having his offense expunged, he obtained an internship to work as a budtender at a popular Hollywood dispensary, while also learning the management aspects of running a retail cannabis storefront. California still proved difficult for a small entrepreneur to enter into the cannabis business, so he made the decision to move his family to Oklahoma to open a dispensary. With the support of his wife Linnelle who has MBA credentials and corporate management accounting experience, as a team they were able to go on to create a thriving retail cannabis business. They are looking forward to bringing their experience back to their home state of California and building a business with their family. 1.2 Budget Fresno Canna Co. will be fully funded with personal investments from the ownership team of over $ . This will include a total capital cost of over $ , leaving nearly as working capital. 7 Fresno Canna Co. will control startup costs by having three of our dispensary experienced owner-operators hold management roles with smaller salaries, these roles include the operations director, inventory manager, and store manager. As revenues grow in the first 9 months of operations, the company will hire and train, or internally promote a store manager and inventory manager to assist the owner-operators as growth and customer demand dictates. The leased space for Fresno Canna Co. does not require a sizable retrofit and/or build-out budget, but rather small cosmetic updates including new flooring and painting. This permits Fresno Canna Co. to redirect the savings into purchasing a wider variety of brands and products to enhance the customer experience and allow for better analysis and targeted purchasing based on sales. Fresno Canna Co. has proof of funds to cover the startup costs and the first 3 months of operating costs, without factoring in projected revenue. The table below is a budget for initial costs and the first 3 months of operation. 8 Below is a more detailed breakdown of the personnel budget for the first 3 months of operations, these costs are included in the budget above. 9 Below is a diagraph of the first three months breakdown of SG&A and Capital Expenses. 1.3 Proof of Capitalization Proof of Capitalization is uploaded to the application portal in the attachment section. 1.4 Proforma 10 Exhibit 8: Profit & Loss by Month Year1 Exhibit 9: Profit & Loss by Month Year2 Exhibit 10: Profit & Loss by Month Year3 The revenue and expense assumptions have been calculated using industry comparables, prior operating experience, US GAAP rules, and best practices regarding projections. Revenues are based on anticipated product sales and retail prices for each product. Year 1 is showing a net income loss due to operations starting in month 9 of 2021, which will go against all of the one time start-up costs. After the first year of operations, it is expected that Fresno Canna Co. will be able to trim expenses through realizing business efficiencies, buying in bulk, and solidifying distribution relationships. Operational costs consist mainly of salaries for personnel, rent, and marketing expenses. The number and type of personnel has been determined from prior operating experience, and using dispensaries operating within similar 11 regulatory structures as a comparable. All operational costs are expected to grow at a rate of 5% per year. Salaries are expected to increase at a rate of 7% per year. Product Prices Retail prices for each of the above products have been estimated from prior operating experience, and analyzing publicly available sales data from California retail storefront and delivery licensees. Eighths are projected to be a high-volume flower product and therefore a smaller decrease per gram has been used compared to higher volume products such as Grams. Quarters of flower typically have lower turnover than individual Grams and Eighths, so a higher price discount will be used to incentivize sales. Prerolls have been assumed to contain 0.75 grams. Inventory is expected to turnover every 15 days. Suppliers are expected to provide 15 days before payment is due. The economic lifetime of the dispensary equipment is anticipated to be 8 years. 12 Cash Flow The cash flow projections show that business will have sufficient cash to support the activity. The following table presents a view of projected cash flow of the business. Exhibit 11: Cash Flow Statement by Month Year1 Exhibit 12: Cash Flow Statement by Month Year2 Exhibit 13: Cash Flow Statement by Month Year3 Balance Sheet The balance sheet shows healthy growth of net worth and strong financial position. 13 Main Ratios The return on equity ratio (ROE) measures how much the owner will earn for their investment in the company. The higher the ratio percentage, the better return is. In general, financial analysts consider return on equity ratios in the 15-20% range as representing attractive levels of investment quality. As we can see ROE (DuPont) for our project is higher and draw up 30%. Return on assets (ROA) gives an idea as to how efficient management is at using its assets to generate earnings. Profitability ratios are a class of financial metrics that are used to assess a business's ability to generate earnings as compared to its expenses and other relevant costs incurred during a specific period of time. 14 1.5 Hours of Operation; Opening & Closing Procedures Pursuant to SEC. 9.3310(a)(1), the operating hours of Fresno Canna Co. will be from 10:00AM-10:00PM Monday through Saturday, and from 10:00AM-6:00PM on Sundays. 1.5.1 Dispensary Opening Process Standard Operating Procedures ROLE 1) Front Desk Staff/Receptionist 2) Budtenders/Sales Associates 3) Opening Manager TIMING Every day before the store opens to customers/patients. PURPOSE This SOP details every step in the opening process, including unlocking the door, stocking products, preparing drawers/workstations, and welcoming the first customers of the day. The opening process starts the moment a manager or store lead unlocks the front door and ends when the store opens for that days’ business. MANAGER: OPENING PROCESS This process outlines manager responsibilities at opening. 1) Go to the 3257 W. Shaw Unit 109 Fresno, CA 93711 and audit the safe to ensure the amounts match what was recorded during the prior evening’s audit. Manager will arrive 1 hour before the budtenders arrive to handle all money tasks using the designated system approved by the owner-operators. a) Check cameras every 5 minutes to ensure nothing looks suspicious. 2) Prepare drawers with in varying denominations. Make sure every drawer has enough change. 3) As other employees arrive, let them in using the “Entering the Building Process” below. (When needed, the security guard will be able to let in additional employees). 4) Budtenders will come grab their drawers. Have budtenders count their drawers to ensure the correct starting amount. 5) If you have any nearly-expired products to discount, bring them out onto the sales floor and notify budtenders. 6) Budtenders will follow the “Opening Checklist”. 7) Schedule lunches and breaks. 15 8) Have a team huddle to start the day. 9) 5 minutes before opening, ensure the Receptionist, Budtenders, and all customer-facing spaces are clean, stocked, and ready for the day. 10)At opening time, the security guard will unlock the front door and welcome any waiting customers. BUDTENDER: OPENING PROCESS This process outlines budtender responsibilities at opening, with a focus on the bud room. 1) Turn on all computers and activate POS. 2) Turn on any other tech such as price screens and music. 3) Go to the manager and get your drawer when ready. a) Count your drawer to ensure the correct starting denomination. b) If you need any change, inform the manager. c) Put your drawer into your till. d) Assign the drawer to yourself in the Cova POS system. e) Log into Cova on your computer. 4) If needed, bring products out to the bud room that aren’t on the floor already. These products will be located in a safe or a refrigerator located in a safe room in the back of the store. 5) Ensure all products are stocked based on expected sales for that day. Aim to have enough product stocked to get you through at the day. 6) Ensure the checkout area is properly disinfected and COVID 19 signs/warnings are visible (if applicable), tidy, and well-stocked 7) Ensure the bud room is properly disinfected and COVID 19 signs/warnings are visible (if applicable). Spot clean any areas missed by closing staff. 8) Throughout the day: a) Package up cash into appropriate bundles to make it easier to count at the end of the shift or at closing b) Sanitize regularly as outlined by the California, Fresno, and Fresno Canna Co. COVID protocols. c) Clean and tidy the bud room and check out area as time allows to make the closing cleaning process smoother. RECEPTIONIST: OPENING PROCESS This process outlines reception/front desk staff responsibilities at opening, with a focus on the waiting room. 1) Visually inspect the front desk/waiting room area and note immediate tasks to complete before customers start arriving. 2) Turn on the front desk computer. Log into Cova. 16 3)Make sure all tech is charged and ready for use. If not, plug it in immediately. Check trash cans, water stations, coffee stations, and refill as necessary 4)Check chairs, furniture, and magazines/educational materials. Spot clean and straighten as necessary. PROCESS FOR ENTERING THE BUILDING - ALL STAFF 1)The opening manager arrives. Drive around the building to make sure nothing looks suspicious. 2)If the exterior of the dispensary looks ok, park in the back designated space. If you spot something suspicious, call 911, then notify the lead owner-operator. 3)The manager unlocks the door and enters the building with another employee or security guard. 4)The manager immediately locks the door after entering. 5)The manager disarms the alarm. 6)The manager turns on the lights and does a visual inspection of the interior of the store, including whether the closing staff completed their procedures adequately, and looking for any water or rodent issues from the night before. 7)As other staff arrive, first check the cameras to make sure no one else is waiting outside. If clear, let them in the front door. Immediately lock the door behind them. The security guard will handle this task when needed. 8)Clock in, securely store personal belongings and get started on opening procedures by job type. 1.5.2 Dispensary Closing Process Standard Operating Procedures ROLE 1)Front Desk Staff/Receptionist 2)Budtenders/Sales Associates 3)Closing Manager TIMING Every day - during the last hour of business and after the store closes to customers/patients. PURPOSE This SOP details every step in the closing process, including managing products, counting drawers, cleaning, and locking the door/leaving the building. The closing process starts around an hour before closing time and concludes after the last employee leaves the store for the night. 17 BUDTENDER: CLOSING PROCESS This process outlines budtender responsibilities at closing, with a focus on the bud room. 1)After customers leave, begin closing drawers one at a time when notified by the designated manager. a)Budtenders on closed drawers will count their drawer, then begin closing duties, focusing on back of house duties so as to not disturb customers. b)Budtenders still serving customers are expected to provide great service, but aim to get all customers out by closing time. c)Count drawers and submit for review via Cova POS. d)Manually count your drawer ’s final cash totals down to zero. Enter each coin and dollar denomination. e)Add relevant notes. f)Select “Submit Drawer for Review.” g)The closing manager will verify and close the drawer in a locked office. 2)Divide up closing duties utilizing the closing checklist. a)Lock up every product for the evening in the assigned areas. b)Ensure the check out area is disinfected, and well-stocked. c)Empty all trash using the buddy system prior to doors locking. d)Ensure the bud room is disinfected and COVID Signs are still present. (when applicable) The evening staff cleans the store (opening staff will disinfect again.) e)Do multiple walk-throughs of the store to make sure no messes remain, and that no products have fallen outside of limited access areas. 3)Log out of Cova and turn off all computers. Plug in any devices that need to be charged. 4)Turn off any other tech such as pricing screens and music. RECEPTIONIST: CLOSING PROCESS This process outlines reception/front desk staff responsibilities at closing, with a focus on the waiting room. 1)If it’s not busy, begin closing disinfecting tasks as appropriate. 2)At closing time, the manager will come lock the front door. 3)After all customers have been served, check Cova and make sure no customers are left waiting in the queue. 18 4)Tidy and fold merchandise or other non-cannabis items for sale. 5)Tidy chairs, furniture, and magazines/educational materials. Sweep/vacuum floors, with special focus on entryway rugs. Wipe down any customer-facing surfaces: countertop, pens, door handles, etc. 6)Close out of all computers, plug in anything that needs to be charged. MANAGER: CLOSING PROCESS This process outlines manager responsibilities at closing, with a focus on back of house. 1)Prior to closing, start doing closing tasks. a)Exchange tips. Count small bills or change and swap out for larger bills from a drawer. b)Divide tips. c)Activate Budtender checklist process. d)Bring in outdoor signage (when applicable). e)At closing time, lock the front door and turn off the Open sign. f)Assign a staff member at the door to let customers out and let out any customers who are still shopping at the time of closing. g)After the last customer leaves the store, perform a store security check, making sure no customers remain anywhere in the store. h)Go to the security station and watch the cameras every 5 minutes to look for anything suspicious. 2)Reconcile all drawers. Note: Some drawers may be closed and reconciled prior to closing if it’s slow. a)Budtender informs the closing manager that their drawer is ready for review. b)Review the counts and notes submitted by the budtender into Cova. Compare the expected cash with the actual cash and look for over/under for debit or cash. i)If totals match, close the drawer. ii)If totals don’t match, recount and update totals and reconcile the difference. If the drawer is positive or short more than $1 a further investigation will take place. c)Count out your daily starting amount for each drawer for the morning shift. Put in secure bags in the safe. d)Put empty drawers back in the till, and leave the till open. 3)Verify that all drawers are closed in Cova. 4)Run your EOD Sales PDF Report in Cova to help verify drawer totals and find discrepancies. 19 5)Count the safe and record totals. Keep the safe open for as short a time as possible. 6)As other employees complete their duties, the security guard will let them out using the “Leaving the Building Process” below. 7)Use the Whatsapp group chat for Managers to send a nightly closing note to the opening manager and team regarding topics such as: problem customers, any issues that occurred that night, changes to orders, if a customer is coming back the next day for a return, etc. PROCESS FOR LEAVING THE BUILDING - ALL STAFF 1)Clock out and grab personal belongings. 2)Closing manager and/or security guard lets the employees out together, then sets alarm, then immediately locks the door behind them. 3)Closing manager and security guard leaves the premises together. 4)Closing manager and last employee to leave: a)Does a final visual inspection of the interior of the store, confirming all products are put away and all areas are clean. Turn off all lights, leaving one set of lights on until it’s time to exit the building. b)Check the camera to make sure no one is outside. c)If all clear, activate the alarm. d)Turn off the remaining lights, lock the door, and step outside. e)Confirm that the door is locked. f)Closing manager and final employee walk quickly and directly to cars. g)Closing manager drives around the building to confirm nothing suspicious and both employees leave the premises. 1.6.1 Description of Day-to-Day Operations 1.6.1 (a) Customer Check-In Procedures The property has a total of 200 common parking spaces on the premises in the front of the building with no parking in the rear. These spaces will easily accommodate customer traffic. Procedure: A.Customers will enter the store through the facility’s front entrance and proceed to the receptionist/security desk in the lobby, where Identification will be verified. Once identification has been logged and verified, the customer will be buzzed into the Product Room. 20 B.Entrance into the areas where cannabis is kept will be authorized by personnel buzzing customers into an area located between the waiting room and cannabis viewing/holding area. C.Once in this holding area, store agents in the back can view anyone and control the second “buzzer door,” allowing them into the cannabis area. The entry door to the cannabis products area will be operated on a “double buzzer” system, controlled by the person assigned to the control area. This person will be viewing the waiting room and allowing access into the rear only after proper screening and the agents in the back are ready. At this point, customers will be escorted to the area where the products can be viewed. No weapons will be allowed in the facility, and anyone entering the cannabis products area will have to walk through a metal detector. Signs that indicate this will also be posted. In addition, there will be a guard on site in the area of the cannabis products, roving the perimeter and the waiting area. 1.6.1 (b) Receipt of Inbound Shipments All deliveries will take place at 3257 W. Shaw in the back alley and be handled by a designated manager. 1)Manager will schedule all deliveries. 2)Vendor will arrive at the back security gate at a designated time. 3)Vendor will call 15 minute prior to arrival. 4)Upon arrival the security guard will conduct a brief security check of premises, verify identification and unlock and open door, locking it after entrance. 5)Manager will take goods to a safe room to count and verify purchase (see below). It is expected that the licensed transport agent will carry a detailed transportation manifest containing: 1.A unique Purchase Order number to track system receipts 2.Name, license number, and premises address for: a.The licensees who possesses the cannabis goods b.The licensee transporting the cannabis goods c.The licensee receiving the cannabis goods 21 3.Name and license number of any licensee involved in the activity or transaction who is not shipping, transporting, or receiving the cannabis goods 4.Date and time of activity 5.Date and time of departure from the first premises, and estimated time of departure for subsequent premises if cannabis goods are being shipped from multiple premises in one transport vehicle 6.Estimated date and time of arrival at each receiving premises 7.Driver license number for any person driving the transport vehicle 8.Make, model, and license plate number of transport vehicle 9.Name and type of cannabis goods to be transported Upon receipt of cannabis goods for transport, storage, or inventory, the Fresno Canna Co. employee shall ensure that the cannabis goods received are as described in the shipping manifest and shall record acceptance and acknowledgement of the cannabis goods in the track and trace system. If there are any discrepancies between the type of quantity specified in the shipping manifest, whether by type of quantity of product received by Fresno Canna Co., the designated employee shall record, and document the discrepancy in the track and trace system and any relevant business record. The shipping manifest will be completed by the distributor and transmitted in the track and trace system to the Bureau of Cannabis Control and Fresno Canna Co. 1.6.1 (c) Point of Sale System Fresno Canna Co. will utilize COVA's cannabis retail POS, which is a full-featured tablet-based point-of-sale system that enables our staff to deliver a fast, compliant, and personalized shopping experience from anywhere in the store. This will serve as our legal compliant seed to sale Point of Sale system for both storefront and delivery order fulfillment. COVA is an authoritative leader in cannabis complaint point of sale systems, and integrates into California’s Metrc tracking system. Cova is utilized here in California by other compliant retailers, in addition to other jurisdictions such as Oklahoma and Canada. COVA includes an age verification scanner in order to prevent underage sales and to verify information with ID barcode scanners. COVA software also makes it impossible to serve patrons after the allowed hours of operation. This will ensure Fresno Canna Co. complies to the authorized hours of operation. 22 COVA is also an inventory tracking system. This system will track and report all aspects of Fresno Canna Co.’s cannabis including, but not limited to, such matters such as inventory data, gross sales, and other information that may be deemed necessary by the City of Fresno. Fresno Canna Co. shall ensure that such information is compatible with the City’s record-keeping systems. In addition, our system will have the capability to produce historical transactional data for review. 1.6.1 (d) Estimated Customers Served Based on prior operational experience, and estimated population allocations per licensee, Fresno Canna Co. expects 15 transactions/visitors per hour. As the dispensary will be open for 79 hours per week, there will be an estimated 1,185 transactions/visitors per week initially. We do recognize that there will be peak operating hours such as lunch time and when patrons leave work between 4:00PM and 6:00PM. 1.6.1 (e) Product Line & Assortment Plan The Fresno Canna Co. product line will be designed to mirror the sales trends from the founding team’s dispensary operating experience, and publicly available data on California retail cannabis sales. 23 FLOWERS ●Grams (G) ●Eighths (3.5G) ●Quarters (7G) ●Prerolls (0.75G) EXTRACTS/CONCENTRATES ●Shatter (G) ●Live Resin (G) ●Sauce (G) ●Vape Cartridges (G) BEVERAGES & EDIBLES ●Chocolate (100mg) ●Gummies (100mg) ●Drinks (100mg) ●Tinctures (430mg) TOPICALS & OTHER ●Topicals Lotions/Balms ●Topical Patches ●Accessories Based on the aforementioned metrics, Fresno Canna Co. believes that products will be sold in the following increments: ●46% Flower ●32% Concentrates ●18% Beverages & Edibles ●4% Topicals & Accessories On a monthly basis, the Dispensary Manager will analyze the dispensary’s sales trends along with publicly available state and locality-specific sales data. In the event that consumer buying habits evolve, the Dispensary Manager will adjust buying habits to fit consumer buying preferences. The overall ethos and goal of Fresno Canna Co.’s product assortment will be to offer high quality products at a fair price, to garner a large base of loyal customers. In addition, products may be sourced that appeal to specific demographics that may include age, gender, ethnicity, and/or income level. This will ensure that Fresno Canna Co. is able to serve the needs of any and all adult-use consumers who frequent the facility. Finally, whenever possible, Fresno Canna Co. will source products from local, licensed cannabis cultivators, extractors, and product manufacturers. By demonstrating a local preference, it is more likely that cannabis revenues will be spent in the community, aligning with the Fresno Canna Co. mission. 1.6.1.(f) Delivery Service Procedures Fresno Canna Co. anticipates utilizing two electric cars for delivery fulfillment. Each car will be outfitted with a locked container for product and cash storage, a GPS tracker to be used with route management tracking software, and cameras. At all times when fulfilling a delivery, there will be a delivery driver in addition to a member of Fresno Canna Co.’s contracted security personnel. Below is a standard operating procedure detailing Fresno Canna Co.’s process for receiving, fulfilling, and delivering an order to a customer. ROLE 1)Budtenders 2)Delivery Drivers 3)Security Personnel TIMING When a delivery order is placed. 24 PURPOSE This SOP details every step in the delivery order placement process, the preparation of said order, and the delivery of said order to the customer. DELIVERY PROCESS 1.Fresno Canna Co. receives a request for an order for delivery through the online menu & ordering platform, from a customer who has verified their identify through said platform. 2.The budtender who is attending the online ordering will accept the order if the customer’s age has been verified, and the product(s) are in stock. 3.The order will be prepared by the budtender, and scanned into Metrc. 4.The order will be given to the delivery driver. 5.The delivery driver, along with a member of Fresno Canna Co.’s delivery personnel will bring it to the Fresno Canna Co. delivery vehicle. 6.The delivery personnel and security personnel will place the order into a locked container. 7.The delivery personnel and security personnel will ensure all route tracking tools, GPS trackers, and additional security equipment is functioning. 8.The delivery personnel will arrive at the customer ’s residence, and verify their age and identity. The security personnel will remain in the car. 9.If the customer ’s identification matches with the information given at the time of the online order, the delivery personnel will give the customer the order in exchange for cash (if: payment had not been made online). 10.If payment has been made in cash, the delivery personnel will place the cash in the locked container. 11.The delivery personnel will drive back to Fresno Canna Co.’s storefront, and update the order in Fresno Canna Co.’s sales management system and seed to sale tracking platform. 25 Exhibit 3: Section 1.1 Cal-OSHA Industry Outreach Course Statement Within one (1) year of receiving a commercial cannabis business permit, Fresno Canna Co. will employ one employee and one supervisor who have each completed a Cal-OSHA industry outreach course offered by a duly authorized training provider in accordance with FMC 9-3316(c). Position: _______________________ Name: _______________________ Signature: _______________________ Date: _______________________ 43 Exhibit 4: Statement Pursuant to FMC 9-3316, Fresno Canna Co. states that all information contained in this application is true and correct. Position: _______________________ Name: _______________________ Signature: _______________________ Date: _______________________ 44 BASIC RENTAL AGREEMENT THIS AGREEMENT made this 3rd Day of April, 2008 by the “Landlord,” and Janet Beauford herein called “Tenant.” (STR Pro) Landlord hereby agrees to rent to Tenant as under the following terms and conditions. ONE YEAR TERM AGREEMENT (LEASE): Tenants agree to lease this dwelling for one year from the date signed then month to month beginning 4/3/2008. RENT: Tenant agrees to pay the Landlord a base rent the sum of $ per month due and payable monthly on the 1 st day of each month during the term of this agreement. The first month’s rent is required to be submitted on or before move-in with the prorated amount being paid prior to the move-in date. FORM OF PAYMENT: Tenants agrees to pay their rent in the form of a personal check, cash, a cashier’s check, or money order made out to the Landlord either at the tenants location or by mail. RENT PAYMENT PROCEDURE: Tenant agrees to pay their rent by person at the Tenants location or mail addressed to the Landlord in the name of (STR Pro)by mail or in such other way as the Landlord will advise the Tenant. SECURITY DEPOSIT: Tenants hereby agree to pay a security deposit of $ to be refunded upon vacating, returning the keys to the Landlord and termination of this contract according to other terms herein agreed. This deposit will be held to cover any possible damage to the property. No interest will be paid on this money and in no case will it be applied to back or future rent. It will be held intact by the Landlord until at least thirty (30) working days after Tenants have vacated the property. At that time Landlord will inspect the premises thoroughly and assess any damages and/or needed repairs. This deposit money minus any necessary charges for missing/dead light bulbs, repairs, cleaning, etc., will then be returned to Tenant with a written explanation of deductions, within 60 days after they have vacated the property. CLEANING FEE Tenant hereby agrees to accept property in its present state of cleanliness. Tenant agrees to return the property in the same condition or pay a $ minimum cleaning fee if the Landlord has to have the property professionally cleaned. OCCUPANTS: The Tenant is renting Unit 2 bed and 1 bath unit in a gated complex. The number of occupants is limited to (5) primary tenants. PETS: No pets. FULL DISCLOSURE: The Tenants signing this Rental Contract hereby state that all questions about this Rental Agreement have been answered, that they fully understand all the provisions of the agreement and the obligations and responsibilities of each party, as spelled out herein. They further state that they agree to fulfill their obligations in every respect or suffer the full legal and financial consequences of their actions or lack of action in violation of this agreement. Signature by the Tenant on this Rental Agreement is acknowledgement and he/she has received a signed copy of the Rental Agreement. Accepted this 3th day of April 2008 . _______________________________ 4/3/2008 Tenant Date _______________________________ 4/3/2008 Landlord-Manager Date Q. 7w/,=~# 6.1 - 6.3.1 LOCATION 3257 W. Shaw Ave. Fresno, CA 93711 ~lm~~OO[ID ©~0000~ ~[IDa SINCE 2021 6.1. In addition to the location-related details provided in the Commercial Cannabis Business (CCB) Application (pages 1-7), the application shall include a thorough description of the proposed location, including but not limited to the overall property, The building, and floor plan. “SEE JENNIFER RUIZ” (Note: J. RUIZ made an adjustment for FCC as the application was already submitted.) Legal Location Description: 1.44 AC PAR DP/M 88-57 BK49 PGS 41&42 Address: 3257 W. Shaw Ave., Fresno, CA 93711 Building/Area: 14,538 Lot Acres: 1.432 Lot Sqft: 62,400 Year Built: 1989 Stories: 1 Building Class: C Use: Retail/ Cannabis Retail Zoning: RMX Census Tract: 42.05 Parking Spaces: 68 DESIGNATED, 400 SHARED 6.2. The application shall include at least one (1) photograph of the front (street side) of the building or street view of the vacant parcel. To Whom it May Concern: Application ID: CSE-20-8 Regarding the Social Equity Application for Janet Beauford (Edwin Benton) we would like to make the following changes. Please Update my DBA Name to the following: Fresno Canna Co. Dispensary Please Update the owners on my application to the following: Janet Beauford 51% (Social Equity Applicant) Rogelio Mitchell Jr 10% (He was a Social Equity Applicant, now merging with this application, please delete his personal application) Edwin Benton 10% Nebyou Berhe 10% Angie Benton 10% Linnelle Mitchell 9% All owners have submitted the background check. Thank you, Please call Linnelle Mitchell at with any questions. 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 Janet Beauford 11/7/2020 CEO Satori Garden 5145 E. Lane Ave #121 Fresno CA 93727 (310) 242-7250 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 December 8, 2020 Please reply to: Marisela Martínez (559) 621-8038 Edwin Benton Satori Garden Dear Applicant: SUBJECT: ZONING INQUIRY NUMBER P20-04650 REQUESTING INFORMATION REGARDING CANNABIS RETAIL FOR PROPERTY LOCATED AT 3257 WEST SHAW AVENUE #109 (APN 424-023-07) 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 RMX/cz (Regional Mixed-Use/conditions of zoning), which is one of the allowable zone districts for cannabis retail businesses. Development standards of the RMX zone district are available in Sections 15-1103, 15-1104, and 15- 1105 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 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. Zoning Inquiry P20-04650 3257 West Shaw Avenue #109 Page 2 December 8, 2020 The subject property (see enclosed aerial) is not located within 800 feet of the property boundary of any of the above-mentioned uses. The subject property 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 II Development Services Division Planning and Development Department Enclosure: Aerial view of 3257 West Shaw Avenue #109 / Section 1.3 Proof of Capitalization