A surprisingly large number of weed enthusiast’s dream of starting up a medical marijuana dispensary. But turning any business plans into reality calls for a thorough understanding of the costs involved in the process of application and establishment. Here are the procedures potheads who are looking to own a cannabis dispensary in the United States should follow.
What is the Startup Fee?
For a cannabis dispensary, there’s a rigorous application process intended to distinguish serious applicants from part-timers in the business. For that reason, you must meet a number of qualifications before you begin enjoying the fun part of the business like choosing which buds to sell and adding a logo to your business. Entrepreneurs in states where medicinal marijuana businesses are officially authorized will pay a non-refundable upfront application fee worth $5,000. However, the licensing fees differ largely depending on one’s location. (For instance while you can have a license for an initial fee of $150 in Louisiana, you’ll have to part with a whole $20,000 for a permit in New Jersey).
Merchants in the business say the procedure of applying for a cannabis dispensary is often too demanding. Most of those who apply fail to meet the high initial startup capital needs they require to run a smooth business. During application, you must prove that you have considerable amounts (large) of cash with you. Again, this will vary from one state to another. For example, an applicant in Arizona requires $150,000 for startup capital while the one in Nevada will need a staggering $250,000 in liquid assets to qualify. Nevertheless, the capitalization costs for most dispensaries are often higher compared to the bare minimum laid down by the state.
What if I need to grow my own weed?
Those who are into growing their own marijuana on top of the dispensary business should learn that there are separate initial fees for cultivators. Apart from the application fee, Growers must pay for a license which they must renew every year. For example a cultivator in Nevada will pay a $3,000 yearly growing fee whereas Connecticut demands a $25,000 application fee and a whooping $75,000 annual fee to maintain the license.
What else should I consider?
Most states (e.g. Colorado) will only accept your application if you’ve spent at least two years as a local resident and have not been convicted for controlled substance offenses over the past five years. What’s more the marijuana dispensary funding must be provided by an individual or organization without any criminal history.
If all the above requirements didn’t put you off then you should consider making your dream come true. Only make sure you sell quality medicinal cannabis as there are stringent rules put in place to protect patients.