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capital to operate the store, as well as the financial capacity to respond to unexpected issues that may arise during operation. For instance, in Manitoba, applicants were required to demonstrate the ability to cover six months of operating costs for each proposed store. Applicants should also be prepared to provide detailed estimates for required capital and operating costs and provide their rationale behind such estimates and costs.
Background checks of key personnel
Personal, financial and criminal background checks will almost certainly be required for key personnel associated with the applicant. The purpose of such background checks is to determine whether an applicant or holder of a licence or authorization meets the requirements for a licence, authorization, or renewal, as the case may be. Those who may be subject to background checks include applicants, directors, shareholders, associates, key employees, landlord, mortgagees and secured lenders. For example, Alberta’s application guide states that checks are required for anyone who exercises control or influence over the daily operations or decision-making, such as hiring and terminating employees.
Business plans
Applicants may be required to provide a business plan containing sales and marketing information, including expected promotional and advertising activities. The business plan may also need to include a section on educating consumers about the responsible use of cannabis, which is currently a requirement for applications in Manitoba. In addition, applicants will likely need to ensure that their application demonstrates their knowledge or experience of the cannabis industry, owning and operating a retail store, and operating in a highly regulated environment.
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