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Operator of Elevate/Flowery Soho says Flowery holds 20% stake under social-equity advice; committee renews license
Summary
An NC Reports co-founder told the committee the store rebranded from Elevate Soho and accepted a 20% passive ownership stake by the Flowery chain after advice from the social-equity fund; the committee approved the renewal but the transcript records concerns about long-term contract terms and limited operational support.
An unnamed co-founder of NC Reports LLC told the Board 2 Cannabis Licensing Committee that the store formerly known as Elevate Soho now operates under Flowery Soho after advice from a social-equity fund and a transaction giving the Flowery chain a 20% equity stake.
The speaker said the original name created confusion with multiple operators and that the social-equity fund advised partnering with an experienced operator to survive market competition. "They own 20% of the dispensary," the co-founder said, and described the Flowery's contribution as capital, new signage and interior construction while saying Flowery has been largely a passive investor.
The co-founder said the deal terms were restrictive and difficult to extricate from, characterizing the arrangement as effectively long-term (described in-session as a 30-year commitment). He also described earlier enforcement efforts that eventually closed a large illicit operator in the neighborhood after months of calls to the sheriff and involvement by elected officials.
Committee members asked about delivery zones, hours, hotel advertising arrangements (the applicant cited paying roughly $200 a month to appear on hotel in-room screens), CIP activities and staff retention. The applicant described community events, occasional charity work (including a food-packaging event with God's Love We Deliver) and limited hands-on help from the Flowery beyond capital and branding.
The applicant said attempts to obtain an additional license were blocked because the operator used the same LLC at the same address in the subsequent application. He said this limited the operator's ability to expand and that the Flowery partnership, while providing name recognition, did not materially increase repeat customers. "Nobody cares at all," the co-founder said of national brand recognition in their immediate tourist market.
After questions the committee moved into business session and approved the renewal alongside the other application on the agenda; the transcript records the motion and approval step but does not include a detailed roll-call tally for the vote.
The co-founder raised concerns about long contract terms and recommended further attention to social-equity program outcomes for operators who take investor deals recommended by the fund.
