How to Open a Dispensary in Florida

Introduction

I am sharing this information with the mom and pop entrepreneurs of Florida because I want a level playing field for hard working Americans who may not have the thousands of dollars required for lobbyists, researchers, and lawyers, yet they toil day in and day out to provide for their families, and reach for the American dream. If you are thinking of opening a dispensary, have an opening, but don’t know where to start I can help you. I want to see Florida’s medical marijuana market thrive, responsibly, safely, ethically, and for the young, old, black, Asian, Hispanic, all cultures and ages to have a chance at that American dream.

I hope you find this information useful, or at the vary least informative.

A dispensary in Florida would be less capital intensive with regard to the equipment, land, and monthly reoccurring expenses, which accompany owning and operating a cultivation center. Controlling the entire vertical from seed-to-sale means you can control quality, but it also means you are the master of all without the time and money to specialize in a particular niche area of the market. Going toe-to-toe with the Colorado based Mjardin Cultivation companies, and other California, Colorado, and east coast firms is a losing battle.

I suspect we will see the numerous hydroponic, and outside greenhouse cultivation nurseries quickly convert over to cannabis when granted permission from the Department of Health Compassionate Use Program. Many of these nurseries have already aligned with licensed growers. They are merely waiting on Amendment Two to pass, and an expanded patient base. Then it will be cost effective to expand, and become visible to the public.

There is an effort both among law makers, and the public to decouple the market. If this were to happen then licenses would be issued for dispensaries outside of the current vertical market. This would be a positive as competition brings about innovation, new products, quality education programs, and wellness programs. Mom and pop owned dispensaries would place a heavy focus on quality, education, self-monitoring and testing. Mom and pop dispensaries know they cannot be the WalMart of Florida cannabis medical sales.

How does a mom and pop dispensary succeed among the big boys? A possible strategy would include providing a communal experience, emphasizing product quality, and creating relationships with patients. Provide a “Judgement Free” zone with each patient consultation. There will be those who know what they want, and desire a quick immediate purchase and exit, so plan for both sets of groups…those that are educated and those requiring consultation.

Make it your mission to raise awareness of the various cannabinoids, terpenes and flavinoids.

Mom and Pop Dispensary Design

Research shows that most patients are looking for a particular experience, and environment that combines safety first, customer service, professionalism, and an atmosphere where a customer can relax, unwind, and enjoy the buying experience.

The Farm – Dispensary in Colorado

The dispensary design should include long term goals to include a comprehensive space plan illustrating layout of furniture, lighting, flooring, and code requirements (American Disability Act). A mom and pop dispensary could utilize local artwork to create an inviting atmosphere with the following goals in mind.

Plenty of lighting both natural and artificial
Indoor potted plants near the entrance
Chalk boards for specials or to convey a daily message
Florida tropics theme with pictures and décor
Educational media both in hard and soft copy
Large video screens in patient areas with educational videos
Consultation rooms
Tracking all the metrics to include daily, weekly, monthly sales, along with patients surveys and comments. Change on a weekly basis adjusting for customer demand, and doctor recommendations.

Security

Security will be a concern with your dispensary operation. The following is a quick analysis, not to be considered all inclusive, of the possible costs associated with dispensary security. The owner could always add more or less depending upon ordinances and security recommendations.

System Description: Example

Camera System – (4) Indoor/Outdoor Ball Cameras, (1) Black Height Strip Camera, (1) 8 channel covert DVR.
Security System – DMP Commercial System w/GSM Cellular Communicator (1) (1) keypad, (3) Door Contacts, (2) Motion Detectors, (1) Glass Break Detector, (1) Hold-up Switch, (1) Exterior Siren, (1) Exterior Strobe
Access Control System (DMP Commercial System) – Magnetic Locks with Proximity Readers on 3 doors, Managed Access System (No dedicated Computer or Personal Needed), (25) Custom ID Proximity Cards with up to 25 Monthly Edits, 24 Hour Management/Support Availability

Investment Summary: Installation: $7,736.00

Monthly Monitoring Fee: $115.00/Month

Customer Groups – Boomers and Millennials

Boomers (ages 50 – 64) and Millennials (18 – 34) are the two major generational groups, which are targeted for customer membership. Generation X is focused on their immediate life (family, work, close friends), while Boomers and Millennials tend to have a greater concern for society as a whole. Boomers and Millennials have a synonymous desire for growth and improvement. This translates over to wellness and healthy living with a deep concern for community and society as a whole. Boomers and Millennials both love buying products, which align with their ethics and personal values. In a 2010 Cone Clause Evolution Study 85% were willing to switch brands, assuming price and quality were equal, if the second brand supported a good cause.

Plenty of lighting both natural and artificial
Indoor potted plants near the entrance
Chalk boards for specials or to convey a daily message
Florida tropics theme with pictures and décor
Educational media both in hard and soft copy
Large video screens in patient areas with educational videos
Consultation rooms
Tracking all the metrics to include daily, weekly, monthly sales, along with patients surveys and comments. Change on a weekly basis adjusting for customer demand, and doctor recommendations.

Security

System Description: Example

Camera System – (4) Indoor/Outdoor Ball Cameras, (1) Black Height Strip Camera, (1) 8 channel covert DVR.
Security System – DMP Commercial System w/GSM Cellular Communicator (1) (1) keypad, (3) Door Contacts, (2) Motion Detectors, (1) Glass Break Detector, (1) Hold-up Switch, (1) Exterior Siren, (1) Exterior Strobe
Access Control System (DMP Commercial System) – Magnetic Locks with Proximity Readers on 3 doors, Managed Access System (No dedicated Computer or Personal Needed), (25) Custom ID Proximity Cards with up to 25 Monthly Edits, 24 Hour Management/Support Availability

Investment Summary: Installation: $7,736.00

Monthly Monitoring Fee: $115.00/Month

Customer Groups – Boomers and Millennials

Boomers and Millennials – Comparisons

It will be very important for mom and pop businesses to distinguish value between the two groups. Millennials make purchases, which they feel will enhance and solidify their identity. They have a strong need to be cool, and to fit in with their peer groups, using brands as a way to construct self-identity more than any generation before them as a group. Millennials will seek out a unique, high energy environment that creates a fun experience.

Boomers prefer making purchases based upon whether it will make their lives easier, and if it is useful and relevant to them. Boomers put an emphasis on customer service, organization, and ease while they shop.

What unites the two groups is an emphasis on high quality products, genuine care, and compassion for both customers and society in general. Millennials are more likely to show loyalty if your business can provide a fun, fast-paced environment, where they can make a connection and feel heard. Boomers are more likely to return to your location if your staff is knowledgeable, and focuses on providing excellent customer service.

Florida Licenses, Permits, and Registration

Starting a dispensary in Florida will mean paperwork. Lots and lots of paperwork. I put together a list of licenses, permits, and registrations, which may, probably will, be required in the state of Florida when opening a dispensary location.

Florida Tax Registration – Small businesses in the state of Florida must register for identification numbers, permits or licenses for the taxes that correspond with their specific services.
Business License – The state of Florida requests that businesses and occupations acquire permits or licenses in order to operate. The type and cost of a permit or license will vary according to the location of the business and the nature of its services.
Alarm Permit – Security system required with dispensary license.
Building Permit – A building permit would be required for new buildings or remodeling.
Business License and/or tax permit – May be one license or two licenses required.
Health Permit – Maybe?
Occupational Permit – Would be required for dispensary. Unknown for the cultivation center.
Signage Permit – Required with dispensary.
Zoning Permit – Required with dispensary and cultivation.
Incorporation Filing – Required when forming a corporation.
Fictitious Name – By filing a fictitious name, or “Doing Business As,” you can provide your business with a name that stands apart from your personal name or the registered name of your corporation or partnership.
Withholding Taxes – After completing the filing process for the 4th quarter of the year, employers should retain records of employment taxes for at least the next four years. The list of items to keep on record include your employer identification number, personal data of employees, information on tax deposits and information on wage, annuity and pension payments.
W-4 and W-2 Forms – Before employment begins, employees must give the employer a signed Form W-4, which is the withholding exemption certificate. Afterward, the employer should pass the Form W-4 along to the IRS.
Employee Eligibility Verification – New employees should fill out Form I-9, which serves as proof of eligibility to work in the United States. This form should be completed within three days of the beginning of employment. The employer must keep a form on file for each employee, whether they are citizens or non-citizens.
New Hire Reporting – It is the owner(s) responsibility to provide information regarding new employers, such as names, addresses and social security numbers, to Florida’s Directory of New Hires within 20 days of employment.
Insurance Requirements – If your Florida-based business requires employees, the business must pay unemployment compensation tax. These funds go to the UC Trust Fund, which provides partial support for workers who are willing and able to work, but lack jobs.

Summary

I hope you found this information interesting, informing, and possibly helpful in any future operation that involves a Florida dispensary. There are lots of models out there to pull from, but hey…this was free. Peace.

Florida Cannabis Consultant, Writer, and Patient Advocate – Bill Monroe