The state has made over $39.5 million in marijuana sales and its expected to be a $100 million industry by 2020. Additionally, keep in mind that as a dispensary you are likely going to pay a significant premium over regular market rate for all sorts of products and services. 10 our list. To open a retail dispensary, costs include $5,000 for the application fee, $80,000 for the licensure fee, and $80,000 for the renewal fee. Closes at: 11:55 PM. How much does it cost to start a dispensary? Permitting and licensing fees are usually somewhat higher than application fees, and there can be a variety of other supplemental fees as well. Medical marijuana dispensaries are also big in MA. Lets say you want to open a cannabis dispensary. The official legal sales then started on January 1st, 2017, when the stores that had previously received their licenses could start their operations. Heres something you might not have known before: the first state to decriminalize possession of small amounts of marijuana was Oregon in 1973. Youd need to factor in licensing fees, real estate costs, wages, the funds you need to stock your store with popular products, advertising costs, and more. Arizona dispensary licenses must be renewed and fees must be paid annually or biannually in order to remain compliant with the state's laws. Here are some more specifics: Cultivation Design a basic work schedule for your budtenders, administrative support, and security personnel, and count up the hours. How much does a dispensary owner make in Oklahoma? Since 2010, the dedicated team at Cannasaver has worked to build a network of trusted, local dispensaries offering discounts and deals on premium products, thereby increasing accessibility and convenience for consumers. It is far more common for dispensaries to procure their flower from authorized suppliers, so thats the assumption well work with. When you find adequate space for your dispensary, you can expect to pay the average price for renting a commercial property in the city you choose as your business location. We also looked at application costs, the average cost per gram for marijuana, taxes, and market sizes. For application fees, $5,000 is a good general estimate, though these fees can vary drastically from state to state. Retail stores and medical dispensaries perform particularly well. Local credit unions may provide a better alternative than banks, and there are private marijuana banks in several states now, but these institutions may require payment of a monthly holding fee, which generally ranges from $1-2k/month. The Centennial State was smart to legalize recreational marijuana before any other state. According to the Virginia Board of Pharmacy website, the following criteria are used in a point system to issue medical licenses in the state: Financial Position. The service requires full cookie support in order to view this website. Starting a marijuana business in Michigan right now can be tricky. 35. For a retail location, the license application cost is $4,500 plus $2,500 due to the local government (due at the time of application). There are other states that make good places to start a marijuana business. The costs of running a business, including real estate and licensing, are also a bit higher. Ideally, you want a state where marijuana use is legalized with open applications, low taxes, high sales prices, and a large market. Dazed, with a location in Holyoke, plans to open an adult-use retail shop at the Magic Lantern, 399 Wilbraham St., in the fall. How much will it cost to open a dispensary in Virginia? The state population has been growing fast in the past few years and tourism is picking up. As a result, there are a wide variety of permits and licenses required to open a dispensary and great variance between locations. This process is automatic. Commercial properties in the middle of Denver are expensive, although youll likely make good profits over time. In fact, the sale of marijuana for recreational use started July 1st, so now is the perfect time to get involved! The more business allowed, the more favorable the ranking. The state's cannabis board requires a much lower than average licensing fee of $2,500 to get started. Youll need to be a Maine resident of 4 years or more to start a recreational marijuana store in Maine. The 4,000-square-foot dispensary, to be known as Mystic Greenz, is being built along Harristown Boulevard near U.S. 36 with its owners hoping to be open for business by June 2023. How much does it cost to open a dispensary in Georgia? That is also partly because of a $6,000 license application fee and the fact that Michigan currently doesnt have a limit on the number of dispensaries in the state. There were 866 licensed dispensaries in California in January 2022 and 374 delivery businesses that were serving cannabis consumers around the state. Nestled in the nations Wild West, Nevada is ninth on our list of top states for cannabis businesses. We may make money when you click on links to our partners. You should note that the licensing price is the same for opening either a medicinal or recreational cannabis dispensary. Getting in early and building a marijuana brand could be a lucrative option for ambitious entrepreneurs. What is the easiest state to open a dispensary? Stores and dispensaries need higher supplies as demand continues to grow, so wholesalers can make big money. Some states require that you have secured the property for your dispensary even before applying for a license. The weed-centric state of Washington would rank higher if applications for cannabis businesses were currentlyopen. Retail stores and medical dispensaries perform particularly well. Missouri cannabis laws to know. In states that have approved the usage of recreational cannabis raw marijuana (AKA: flower) prices have fluctuated in a turbulent 2020, but you can still expect to pay between $1,300/lb.$1,500/lb. Massachusetts benefits from tourist spots like Boston and big college towns such as Cambridge. Of course, wherever you plan to start your cannabis dispensary, dont forget to insure your business. Keep in mind, however, that at this point Oklahoma is open for medical marijuana . The application fee for an Industrial Hemp Grower Registration is $150. Complete Embrokers online application and contact one of our licensed insurance professionals to obtain advice for your specific business insurance needs. Applications for every cannabis business type are openmeaning it is currentlypossible to apply for a cannabis business licensewith the nations lowest application fee of just $250. Guaranteed delivery within 24 - 48 hours! However, Massachusetts has strict regulations for dispensaries, and licensing can be a lengthy and costly process. How do I open a recreational dispensary in Virginia? When it comes to the position of your store, you should note that regulations in Oregon demand that dispensaries should be at least 1,000 feet away from the nearest school or daycare. Massachusetts saw $106 million in revenue from cannabis businesses in 2018an impressive figure, but one that shows theres still opportunity for growth. The application fee for opening a dispensary is $1,500, and if you get approved, the annual license fee is $10,000. Getting an early piece of the rapidly growing pot pie is a smart move. If the state does not allow growing, quality products will cost around $1,500 per pound. How to Get a Loan to Open a Dispensary: 8 Creative Ways, How to Get the Right Cannabis Licenses for Your Business. Then expect to spend between $80,000 to around $150,000 to get your operations going. How much does it cost to open a dispensary in Florida? If you havent considered these two states yet, now might be a good time to look into what they have to offer. What Is the Cheapest State to Open a Dispensary?Oregon. All of these places are worthwhile choices so look into them and choose whats right for your business. 9. Sources indicate that cannabis businesses still need to set aside a larger sum for certain services than other companies, but that is usually because this industry still lacks qualified professionals to cater to every companys needs. It will be in a building at 234 Talcottville Road that was . Starting a Business | Data-Driven Reports. Investing in cannabis insurance means investing in a financial safety net for your business, as cannabis business insurance costs are far lower than the cost of having to deal with unfortunate events or lawsuits alone. How hard is it to open a dispensary in Arizona? The cheapest dispensaries in Washington. To get a dispensary license in Virginia, applicants need to apply for a "Pharmaceutical Processor Permit." are far lower than the cost of having to deal with unfortunate events or lawsuits alone. To open a dispensary in New York, you should be eligible for a conditional adult-use retail license. To find the best states for opening a cannabis business, we collected data in five overarching metric categorieslegal environment, ease of market entry, costs, tax climate, and market opportunity. What Are the Costs When Opening a Cannabis Dispensary? We looked high and low across all the legal states and concluded that the answer might not be all that simple and that there might be more than one option for you. You can expect to pay $12/hr. Compared to many other businesses, the application and licensing fees are especially high. Theres also an excise tax of $335 per pound of flower and mature plants. It is illegal to consume medical marijuana in public. Then we looked at how many licenses each state issues for cannabis businesses, and how many are still up for grabs. Also, you must stock your shelves before opening your doors to customers, and that will be a huge item to cross off your list of costs. Some states offer better market conditions, others offer lower tax rates, and some offer more flexible licensing options. Though both Democrats and Republicans are hoping to . YouTube, 228 Park Ave S # 20702 However, Colorados price per gram is relatively low at $7.14, indicating that the state might be suffering from over-saturation and strong competition. Before applying for a loan to open your dispensary, it might be a good idea to calculate the approximate sum you will need for your startup costs. Expect your monthly expenditure to be around $50k, which would include staffing, lease, restocking, and marketing. How much is a dispensary license in Oklahoma? Other options are starting a medical cannabis dispensary or a marijuana delivery service. While the application fee is only $300, this cost is based on each patient serviced with the limitation of up to five patients per cultivator. Theres always been a buzz around Oregon. On the upside, however, theres no income tax or sales tax in the state. 34. Missouri just gained a legal medical marijuana program, but recreational cannabis remains illegal across the state. But on average, plan to have around $12,000 or so to cover application and licensing fees. The legal environment is favorable and there are plenty of opportunities for market entry. After more than a year of lobbying, applying for licenses, speaking with the public and finding staff, Kerry Raheb is about ready to open his shop, Indica, at 127 Columbia St. California marijuana businesses have made $2.75 billion in legal and recreational cannabis sales. Licensing fees are slightly higher in Colorado than in Oregon, so you would need to pay a $5,000 application fee and an additional $2,000 annual licensing fee if your application is successful. Please enable cookies on your browser and try again. The sum varies from state to state, and you should check your state and local regulations to know what to expect in your area. What temperature can humans survive Celsius? 4. Oregon marijuana licensing has recently been put on temporary hold, but there are licensed businesses for sale. ADAMS An investment banker and one-time candidate for the U.S. Senate is poised to open the town's first cannabis dispensary in the coming weeks. Each state has two categories of licenses: available and open. 12. What is the cost to apply for a retail dispensary license in Colorado? Many factors influence the overall cost of opening a cannabis dispensary. Kelly is a former Google Tech Entrepreneur and Apple Developer who has counseled businesses of all sizes and growth stages. Before applying for a license in California (the application fee is $6,000), you should check what cities are accepting new applications at that moment. 14. Application fees are only $2,500 for dispensaries, cultivation operations, and manufacturing businesses, but they currentlyhave a very limited number of licenses available and all of them are spoken for. Being among the first states to fully legalize cannabis, Colorado is home to many dispensary owners, and. And while the cost of starting a dispensary might not be the only concern you have, it certainly is one of the major ones. With so much to juggle, its important to launch your cannabis business in a state that makes success not just possible, but probable. It will provide a financial safety net in case of any unplanned event. To visit a recreational dispensary you must bring a valid ID, such as a driver's license or passport, to show proof you are 21 years or older. Its easy to get high on life in Colorado, and with a lower than average application fee of $4,500 available to all cannabis business types, it is a state thats ripe for weed innovation. Easily $50k-$100k on an annual basis for the rental of an average sized facility in a moderately competitive market. Massachusetts is still a good option for a dispensary because of the higher than average retail price of cannabis. The good news is that theres no income tax on cannabis, helping to offset the excise taxes. Facebook Interested applicants must submit: Application fee: $10,000 non-refundable, along with the initial application. 6. When you launch a cannabis business, you'll need to research critical information around costs, including the cheapest state to open a dispensary and other fa When you launch a cannabis business, you'll need to research critical information around costs, including the cheapest state to open a dispensary and other Dispensaries, marijuana farms, and delivery services all perform well in the Golden State. (Video) How to Open a Marijuana Dispensary in the USA and Canada, (Video) Licence to run pot shop to cost $10,000, (Video) What States Are Legalizing It in 2022 | States Legalizing Cannabis in 2022 | Cannabis News, (Video) How much does it cost to build a dispensary in 2022?? Dispensaries are, for the most part, a very profitable business. But when it comes to starting any business, location is key and you need to pick the best place to start a, Starting a business in California can be costly, especially when looking for a commercial property in a high-income area like Los Angeles or Orange County. In both Missouri and Michigan, you'll pay a non-refundable $6000. It's the highest of any US state, and the figures are set to grow exponentially. This price tag includes costs like licensing, acquiring property, store security, a compliant point-of-sale system, wholesale product procurement, staff, taxes, and hidden fees specific to dispensary businesses. What is required to open a dispensary in NY? How much is a dispensary license in Oklahoma? Dispensary owners can also apply to cultivate and manufacture marijuana products. You can also get licensing for growing and manufacturing cannabis products. Its the highest of any US state, and the figures are set to grow exponentially. Now the cannabis industry in Oregon is booming with marijuana sales of $777.6 million. When compared to Oregon, Colorado also has higher taxes. The startup capital of a dispensary in Colorado ranges between $150,000 to around $2,000,000. If youre looking to start a marijuana business in the US, the time is now. Starting a marijuana growing operation to supply to stores and dispensaries is another lucrative option here. Twitter Same for your financial situation, including your Section 280E compliance. New York, NY 10003-1502, California Privacy Rights | Privacy | Terms | Sitemap. States were then grouped by which legal category they fell into, placing those with both legal medical and recreational use at the top of our list. . As with other requirements, you need to confirm the specific application and licensing fees in your state. How much does it cost to open a dispensary in Nevada? , and if you get approved, the annual license fee is $10,000. 5214F Diamond Heights Blvd Alaska was among the first states to start with cannabis retail sales in October 2016, and the market has been active and expanding ever since. How many patients can a grower have in Oregon? NEW! San Francisco, CA 94131. How profitable are dispensaries? How do I open a recreational dispensary in Virginia? How hard is it to open a dispensary in Arizona? Unit #1261 Application and License Fee: In New York, it costs $2,000 to get a conditional adult-use retail license. Your email address will not be published. One of Americas biggest marijuana states, Washington marijuana businesses have also reached the $1 billion mark in sales, making this a very attractive choice of location for entrepreneurs. Legal retail sales of cannabis didnt start before November 2018, even though voters legalized cannabis in 2016. The licensing fee for medical marijuana dispensaries in Florida is $60,830 much higher than other states in the US. Fast forwarding to the present time, Oregon is still a good option and one of the cheapest states to open a dispensary. With the states grouped by the types of legal cannabis, they were then ordered by which currently have licenses available and open.