Court Receiver: Marijuana Court Receiverships
Cannabis Court Receivership, also known as Marijuana Court Receivership, is a growing field for court receivers. As the legalization of marijuana becomes more common, more businesses are being created to handle the increase in demand for dispensaries.
Oftentimes, someone who is passionate and knowledgeable about growing marijuana teams up with a savvy business partner to create a cannabis dispensary, grow facility, or infusion kitchen. This partnership, while on the surface seems ideal, is rife with the potential for disaster.
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For more information about having us appointed to your case, call Kevin Singer: 877.755.9064.
Marijuana Court Receiver: Opening a Dispensary
When a dispensary first opens, the owners are confident that their new venture will be both a financial and personal success. They are confident that they will be able to make a great living doing something they love. They believe that they are doing our part to make the world a better place.
At least that’s how they feel in the beginning.
In the beginning, they focus on making a difference. They focus on providing products that can help heal cancer patients, that can offer relief for chronic pain, that can comfort veterans suffering from PTSD. They focus on their grow facilities and concern ourselves with obtaining the perfect balance of CBD and THC from our plants. They focus on patient education and making sure everyone gets the strain that’s right for them.
They offer competitive pricing and special discounts to those who need cannabis the most. They spend extra time with their patients to make sure they know as much as possible about the flower, edibles, and other products they provide for them.
Much of their time is spent helping clients and educating patients. They strive to give the best product for their client’s specific needs.
They don’t concern ourselves with making a huge profit as much as they concern themselves with making a huge impact on the world around them.
Marijuana Court Receiver: There’s More to It than Marijuana
What they may not realize is that there is more to owning and running a dispensary than being passionate about cannabis. There’s a whole other side of the business: the business side of the business. What they may not realize, or what they may choose to ignore, is owning and running a dispensary is exactly the same as owning and running any other business. If they leave the business side of things to our business partners, they can run into all sorts of trouble.
It’s great that they found a business partner who was able to see the benefits of cannabis and was willing to take the risk of running a cannabis business. By combining one’s knowledge of cannabis and the other’s knowledge of business, they believe they are destined for success. Together, they were able to obtain the required licenses, permits, contracts, leases, and everything else they need to open our dispensary.
What happens next?
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For more information about having us appointed to your case, call Kevin Singer: 877.755.9064.
Marijuana Court Receiver: Focus on Business
If they are lucky and are able to hire a good manager and staff, it makes the day to day operations of a business much easier. The business practically runs itself and they are able to focus on our true passion: cannabis.
They let their business partner focus on the business. Everything goes smoothly and the business is making money — lots of money. The cannabis business is largely a cash-based business and there is always a lot of money around. All this cash can be a big temptation. They may pay a few expenses with cash and might forget to write them all down. They allow an employee (or two) to take a cash advance. Since there is so much cash, they get a little careless and forget to keep track of where all the money goes.
Or, their partner sees all the cash and decides it might be easier to pay some bills with it rather than get the check book or purchase a money order. They might buy some new computer equipment or accounting software and the purchase never makes it to the books. Or worse, they might use some of the available cash to cover personal, rather than business, expenses.
Marijuana Court Receiver: The Beginning of the End
Before anyone realizes what’s happening and before they can get things under control, accusations are made on both sides and partnership begins to fall apart. The lack of financial communication, while not intentionally malicious, may lead to insolvency and lack of ability to pay the bills. Things begin to look bleak.
One partner may decide to take legal action against the other partner in order to preserve the integrity of the business. When this happens, the partners can elect to attend mediation. This can be a good solution if the partners are on good terms.
Through mediation, the business can be preserved and the partnership can be saved. That is, if the partners are willing to work together and let the mediator guide them to a fair and equitable solution.
Cannabis Court Receiver: Appointing a Court Receiver
If the partners are not on good terms, an alternative solution is to request that the presiding judge appoint an unbiased third party, known as a court receiver, to take over the day to day operations of the business.
A court receiver can be appointed over a business when the partners are in litigation with each other and the demise of the business is almost imminent. One of the parties (typically the plaintiff in most cases) will have his legal counsel file a motion with the court to appoint a receiver over the business. It is considered the last line of defense to protect and preserve the business.
In many cases, a court receiver can save the business. If the business is a dispensary, it is critical that the court receiver be well versed in the unique business requirements of a cannabis based business.
Cannabis Court Receiver: Choosing the Right Court Receiver
The best court receiver for managing your dispensary is one with a working knowledge of the cannabis industry. They must understand all aspects of growing, marketing, and selling cannabis. They need to be an advocate for your business. Many conventional businessmen have a negative bias when it comes to cannabis. It’s a very good idea to make sure the court receiver appointed to your case understands the unique business aspects of running a dispensary and has experience with similar cases.
Click Here to contact Receivership Specialists.
For more information about having us appointed to your case, call Kevin Singer: 877.755.9064.
Before accepting the appointment of a court receiver, make sure they meet the following basic requirements:
- The licensing requirements of a dispensary include residency requirements. This means that the court receiver, or the project manager engaged by the court receiver to manage the business, must be a resident of the state where the dispensary is located.
- Each state, where the sale of cannabis is legal, has a unique set of rules and regulations. The court receiver must be aware of the legal requirements in which the dispensary is located.
- The court receiver must know and understand the process the state uses to issue the cards needed for clients and patients to purchase the products sold. They must know how to work with the physician who issues these cards, as well.
- Dispensaries are a labor intensive business and many of the employees have specific training, education, and experience in the cannabis industry. The court receiver must be able to manage employees and cultivate an atmosphere that will encourage the business to flourish and grow.
- The court receiver must be able to navigate the banking requirements of a dispensary. Make sure the court receive knows to omit the requirement of using a licensed and insured bank from any and all court orders related to the receivership. And knows to create (if possible) an insurance policy to protect and preserve any money.
Having basic requirements that a court receiver must meet will increase the chances that the business will grow, and even thrive, while under receivership.
While many consider receivership to be the last line of defense to protect and preserve the business, the appointment of a court receiver can be an extremely effective way to ensure the longevity of any business. A court-appointed court receiver can save a dispensary, a business, and, oftentimes, a livelihood. Remember, the court receiver is an officer of the court and is tasked with carrying out the court’s orders while protecting and preserving the business.
It’s not that people shouldn’t follow their dreams when it comes to owning a cannabis dispensary or that they shouldn’t trust business partners. It’s more that they need to ensure the longevity and profitability of their dreams. And they do this by bringing in the right experts at the right time.
Marijuana Court Receiver: Contact Receivership Specialists
Receivership Specialists has been appointed over multiple cannabis related receiverships. In all cases, marked improvements have been made to retail sales, corporate marketing & branding, and overall value of the company.
To read more about Marijuana Court Receivers or Cannabis Court Receiverships, go to:
Court-appointed receivers an option for troubled marijuana companies
Receivership Specialists has been appointed to over 581 cases and has transitioned over $2,000,000,000 in assets for our clients. We have worked with marijuana dispensaries helping them manage and improve their business during legal conflicts.
For more information or to inquire about having Receivership Specialists assist you with your cannabis dispensary, please contact Receivership Specialists or call 877.755.9064.
To learn more about the process of having us appointed to help you, please click on How to Have Receivership Specialists Appointed to Your Matter.
