Starting a medical marijuana shop is every cannabis enthusiast’s dream. For one’s business dream to come true, it is important to understand the costs that come with the application and startup process. The complicated application process is designed to eliminate those who aren’t serious about the business. Therefore, there are many requirements to consider before diving into the real business, like selecting which products to offer at your dispensary or choosing an fashionable logo. In states where medical marijuana is legal, the typical upfront cost for an application is $5,000 (non-refundable). Licensing fees differ based on your location.
“Medical marijuana business license holders say the process to receive state and local medical marijuana certificates is grueling,” said Andrew Jolley, a Las Vegas dispensary owner.
Most applicants cannot obtain the startup capital needed to operate smoothly. When applying for a permit, business owners must show that they have enough capital to push forward. Again, this varies from state to state. In Arizona, startup capital is $150,000 and in Nevada, $250,000 is required. However, for most dispensaries, the actual capitalization costs are higher than the minimum threshold set by the state.
Individuals who want to grow their own marijuana in addition to starting a store should know that there are different startup fees in the process. Growers must submit an application fee and a license that is to be renewed every year. Some states, like Nevada, charge growers a yearly fee, which for producers residing in the state is $3,000. By comparison, Connecticut asks $25,000 for the grower’s application fee and $75,000 for annual maintenance fee.
Other costs for opening a marijuana establishment can sometimes be just as expensive as the startup fees. In most states like Colorado, applicants have to be a resident of the area for at least two years, and should not have any controlled substance felony convictions within five years before the application. When it comes to financial aid, the party supplying the funds should not have any criminal history.
If the requirements above didn’t scare you, then you should be fine to open your own marijuana store. Although the guidelines are strict, they are there to make sure that marijuana establishments are reliable in offering quality medicine for patients looking for healthy treatments.