Michael Flynn is convinced that his true calling lies in the cannabis industry. Are his ambitious expansion efforts in conflict with state law?
The FlynnStoned Cannabis Company, located in Syracuse, N.Y., boasts a spacious layout comparable to that of a large clothing store. The wooden front doors feature iron handles adorned with finials shaped like cannabis leaves. Within the space, cannabis flower nuggets, infused candies, and vaporizers are elegantly displayed in glass cases across two levels. On the third floor, a lounge bathed in natural light serves as the perfect venue for concerts and yoga classes.
By almost any standard, it stands out as a remarkable success story within New York’s emerging legal marijuana sector. Meet Michael Flynn, the 43-year-old high school dropout and roofing entrepreneur, who is set to establish a cannabis empire with FlynnStoned dispensaries stretching from Brooklyn to Buffalo.
However, Mr. Flynn’s aggressive strategy has sparked backlash from the communities where he aims to establish additional stores. A recent flurry of deal-making has seen him establish branding agreements with dispensaries across the state, allowing them to use his name. This activity has caught the eye of regulators, who are now probing whether he is breaching the spirit, and possibly the letter, of the state’s legalization law.
“They’re attempting to jab a pitchfork into me,” Mr. Flynn remarked.
Mr. Flynn, adorned with tattoos on his fingers that read “HIGH VIDA,” embodies the very spirit that the state’s legalization initiatives aimed to uplift. His 25-year-old conviction for marijuana possession has positioned him at the forefront of the queue for a state license to sell recreational cannabis products, aligning with New York’s initiative to rectify the injustices of the war on drugs.
In many respects, the success of his business stands out as a beacon amid the challenges of the state's marijuana rollout. While others faced challenges in taking flight due to intricate regulations and sluggish bureaucracy, FlynnStoned soared to $30 million in revenue in its inaugural year.
His aspirations have faced some well-known obstacles. Prospective neighbors in New York City are rallying to prevent new stores from opening, citing worries about crime and the potential exposure of children to marijuana.
Simultaneously, community boards and state regulators express concern that his entrepreneurial effort to sell the rights to the FlynnStoned name to approximately 30 dispensaries statewide may exploit less fortunate marijuana license holders.
“It appears to go against the essence of providing support to those who were previously affected by anti-cannabis legislation,” stated Jesús Pérez, the district manager of a community board on Manhattan’s East Side, where Mr. Flynn is establishing a dispensary in the former location of the city’s last Hallmark store. “It feels like one red flag after another has emerged, leaving the community feeling uneasy.”
A Commitment for Life
Mr. Flynn views the sale of marijuana as his calling.
“It truly feels as though my purpose on this planet is to accomplish this,” he expressed in a recent interview. “I’ll continue this as long as it brings me joy.”
At the age of 12, he began selling weed, a decision sparked by his parents' divorce and the absence of his father. Without supervision, he fell into the grip of addiction. At the age of 15, he left home, navigating a series of apartments and temporary lodgings before ultimately leaving school behind. At just 24 years old, he was transporting hockey bags brimming with marijuana across the Canadian border, commanding prices of around $2,400 per pound in his hometown of Syracuse and an impressive $4,000 per pound in Florida.
At the age of 18, he faced a conviction for low-level marijuana possession, paid a fine, and successfully sidestepped jail time. After five years, he left drugs behind and embraced a career in roofing.
In 2006, he launched his inaugural venture, The Roofing Guys. He distinguished himself by providing customers with financing options, and as his primary competitors faded away, he amassed wealth.
“I was completely consumed by drugs, alcohol, and the nightlife,” he shared. “I flipped the script and became hooked on achieving success.”
It has provided him with a new life alongside his wife, Angela, a high school classmate who generously offered him a Home Depot credit card in her name to kickstart the business. The couple resides in a custom-built estate nestled in the heart of a cornfield near Syracuse, where they are raising their five children.
In 2021, when New York embraced the legalization of recreational cannabis, Mr. Flynn's proven business acumen and his past marijuana conviction positioned him to secure a license for one of the state’s inaugural legal dispensaries.
He took to Instagram to showcase a video from the ribbon-cutting ceremony held in June 2023, blending it seamlessly with striking images of his lime-green Lamborghini Aventador and a dazzling diamond necklace featuring his store’s name, elegantly framing a green marijuana leaf. The video features the track “Blow Up” by rapper J. Cole, who delivers the powerful lines, “This is a song for my haters/ Y’all got me feeling like the greatest.”
As FlynnStoned expanded, the opportunities began to unfold before its founder like a vibrant tapestry.
Crafting the Identity
According to New York’s legalization law, a single shop owner is restricted to managing no more than three dispensaries.
According to regulators, Mr. Flynn may have discovered a method to bypass that law.
Following the remarkable success of FlynnStoned, Mr. Flynn reported that other dispensary owners started seeking his expertise and guidance. Before long, he began striking deals with several of them.
According to him, those agreements enabled other dispensaries to leverage the FlynnStoned name in return for a modest percentage of their earnings. Mr. Flynn mentioned that he also links business owners with friends who are investors, but “not Wall Street types.”
“Initially, it started with guidance and support, but then it evolved into a realization: why not create the brand and benefit ourselves as well?” He stated.
Mr. Flynn clarified that the branding agreements do not confer ownership or investment status upon him. He chose not to disclose the exact amount of revenue he receives, stating only that it was “not that much.”
State officials are now closely examining the deals, aiming to protect small, local business owners from being exploited by larger players, a key goal of the legalization process. James Rogers, the director of a newly established unit within the Office of Cannabis Management dedicated to investigating potential ownership violations, stated that licensees have the flexibility to enter into agreements that enhance the functionality of their businesses. However, he stated that his team would reverse agreements that grant investors excessive control.
“What we’re targeting is the predatory behavior,” he stated.
The agency refrained from confirming whether it was looking into Mr. Flynn. However, Mr. Pérez, the community board official, mentioned that this was the information he received from state officials. Mr. Flynn stated that the agency was preventing certain deals from going through.
Robert Grannis, a 54-year-old farmer, obtained his license in 2022 and is set to launch a FlynnStoned store in Binghamton. He mentioned that he had reached out to Mr. Flynn for assistance after the state did not deliver the financing and real estate it had pledged to support early licensees in launching their dispensaries.
Mr. Flynn first proposed purchasing his license, according to Mr. Grannis, but they ultimately agreed on a branding partnership. Mr. Grannis then brought on an investor to cover the renovation costs. He chose not to elaborate on the terms.
Mr. Grannis expressed that the agreement provided him with a sense of reassurance, as he had encountered troubling accounts of individuals who invested in their store setups, only to face regulatory denials or delays in opening. In contrast to liquor stores, cannabis licensees obtain their final licenses only once their establishments are fully constructed.
He stated that Mr. Flynn's actions in the cannabis industry were akin to what Starbucks accomplished with coffee or what McDonald’s achieved with hamburgers.
“We’re simply pursuing the American dream,” he stated.
Axel Bernabe, an attorney instrumental in crafting the state's legalization law and market regulations, assists Mr. Flynn in structuring the deals. Despite criticism from certain industry insiders regarding his involvement, Mr. Bernabe confidently asserts that there is nothing amiss with the actions of himself or Mr. Flynn.
“The notion that this is highly questionable is simply a smear tactic,” Mr. Bernabe stated, further noting, “It’s all about brand building, and everyone is in on it.”
A Surprising Twist
The deals were progressing seamlessly until Mr. Flynn ventured into New York City, provoking a loud and fierce backlash.
Residents voiced their opposition to his proposal to establish a dispensary in the old Hallmark store, located near the United Nations. In Greenwich Village, he is transforming an old adult video store into a FlynnStoned. However, the community board uncovered videos of him and others smoking at his Syracuse location, which is against the rules. A petition aimed at preventing him from opening another location in the Greenpoint Savings Bank building in Brooklyn has also garnered hundreds of signatures.
“I’m not against marijuana, but I oppose dispensaries,” stated Tania Arias, a Realtor who has resided just around the corner from the Hallmark store location for two decades. “This isn’t a store that will meet the needs of our community.”
Mr. Flynn's own statements could lead to significant challenges for him. In September, he informed the East Side community board that he was the exclusive owner of the upcoming dispensary, that he had already secured a lease, and that the owners of the Hallmark store had fallen behind on their rent for several months.
Everything was a fabrication.
He expressed surprise at the opposition, yet he reacted defensively to questions he deemed intrusive. “Everything I mentioned in that community board was simply what I needed to say to escape that situation,” he stated.
Kuljot Bhasin, 63, co-owner of the Hallmark store alongside his wife, Amrita, has filed a defamation lawsuit against Mr. Flynn. Their pursuit involves a claim for no less than $4 million in damages. Mr. Flynn’s defense attorneys asserted that their client had not made any malicious statements.
“His attempt to undermine us to elevate his own standing with the board was infuriating,” Mr. Bhasin stated in an interview.
Mr. Bhasin, a Sikh American immigrant, announced his intention to relaunch the business at a new location. Yet, a part of him secretly wishes for Mr. Flynn’s plans to unravel, allowing him the chance to return to the shop where he dedicated 22 years to selling cards and gifts.
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