With legal cannabis sales hittinglast year and a crazyprojected for next year there is a knew green gold rush sweeping america “cannabis”.I know you can agree that everyone and their mama want to open a cannabis club business
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In this article I will show you what is needed and how to start a medical cannabis club depending on what state you are in you can open recreational cannabis club or medical.
Operating a marijuana dispensary or cannabis club is not cheap there are thousands in licencing fees and overhead cost
what is a cannabis club?
Is a cannabis shop where consumers can come and select a variety of cannabis buds or a variety of cannabis products such as oils,tinctures,edibles etc. The cannabis store is licensed by the state to provide medical weed or recreational weed legally to customers depending on what state your in you can purchase without a prescribed cannabis card
In a medical cannabis club you can only supply cannabis to it’s members with medical cannabis cards but in states like Colorado if you have a valid Id and are 21 years of age you can walk into these established cannabis store and purchase up to 1 oz of recreational marijuana beautiful right?
What is needed to start a medical cannabis club
When starting any business the first thing you need is to be focused in your outcome and dedicated to the work that lies ahead of you.Opening a cannabis club/shop takes a good investment of time and money if you have a passion for cannabis and are willing to put in the work then you are ready to start your business.
The licencing process is nauseating but if your focused in the outcome I don’t think the bureaucracy can break your momentum lets go thru what license you need to start a legal cannabis dispensary.
In 1996 proposition 215 the compassionate use act was passed making medical marijuana legal then in 2003 SB 420 was passed protecting the rights of medical patients and physicians who recommend medical cannabis. In 2015 AB 266,AB 243,and AB 643 Medical Marijuana Regulation and Safety Act was passed by governor Jerry Brown
AUMA- Adult Use of Marijuana Act
will be voted on in november 2016 in california and if passed will make the possession,sale,and cultivation legal in legal for anybody age 21 and over for recreational and commercial uses an excise tax of 15% plus an $9.25 per ounce for all cannabis commercially cultivated in addition to local and stated sales tax.
All medical cannabis patients with a state issued cannabis card will be exempt from the 7.5% sales tax
AUMA/Proposition 64 will not disturb the rights of medical marijuana patients Prop 215 to cultivate or posses marijuana for personal use. it will protect the patients child custody rights and prohibit local authorities to completely ban indoor cultivation.
Will employers drug test for cannabis? yes they keep the right to discriminate against cannabis users on or off the job use medical or recreational
State Licensing needed
TYPE 10A- only three medical cannabis club locations can be operated with this licences and the owner also has the right to deliver to patients. Best place to get an application is in the county/city website you want to operate in.
“Dispensary” means a facility where medical cannabis, medical cannabis products, or devices for the use of medical cannabis or medical cannabis products are offered, either individually or in any combination, for retail sale, including an establishment that delivers, pursuant to express authorization by local ordinance, medical cannabis and medical cannabis products as part of a retail sale.
in California to run a cannabis club dispensary you will need to make a business plan to qualify for a license and take necessary steps to carryout the measures as stated in article 7 of bill AB-266 which range from security equipment,keeping track of cannabis in possession, loitering rules to reporting theft Etc.
Seller’s Permit- In California cannabis buds are taxable even medical weed by 7.5% so its a must you register with the California State Board Of Equalization because you don’t want to get hit with a huge bill when your cannabis shop is booming also you need to do this to keep your state license valid
Employer Identification Number(EIN)- you will need help so its best to be prepared to hire a bud tender or security guard for example so you can do the proper cannabis card checks of your patients or anything you might need help with.
Before choosing where to start your cannabis club business you have to do some research on the city and county laws on medical marijuana dispensary and ordinance some cities in California have banned cannabis dispensaries and even outdoor cultivation so it is best to choose a welcoming city and county (co/city ordinances)
The next step is to obtain all the proper permits from the city and county you have selected for your location
Most cities require a zoning permit and usually the location of your medical cannabis club has to be 600-1000 feet away from a school . some cities may require more than others so do your research on the policies on the MMJ scene in the chosen city.
A business permit is needed to operate any MMJ business in most cities witch has requisites to keep it active all cities are different but for example some cities may give you a curfew of when to operate the medical marijuana dispensary and certain guidelines of signage and lighting you have to comply with in order to keep your business license.
A Public Safety Permit is needed in some cities for cannabis shops or any business selling liquor or tobacco etc. these permits are issued only after you have obtained your zoning permit.
Operating Cost For Medical Canabis Club is not as expensive as you would think there are a lot of myths about how much it cost to operate a cannabis club. In some states the state licensing fees will range from $150 like in Louisiana to an incredible $20,000 like in New Jersey.
luckily we are talking about the MMJ industry in California you’ll need an investment of $10,000 give or take depending of the magnitude of your business but keep in mind the medical marijuana patients just want a safe and discreet place to get there medicine there is no need to over spend on ambiance or red carpet bull crap like that it will only drive opening cost higher.
it will cost you around $5000 for state licensing fees and for local city/county permits anywhere around $800. Researching your location is vital to how much you will spend on opening you want a good neighborhood that is not crime ridden with cheap housing prices so depending on your location the first and last month lease space is about $1800.
Security is a necessary operating cost you will need a little help with the checking in your patients and book keeping is very important so you will need a couple of employee’s to free up your time for this. the usual wage of a cannabis club employee is from $12-$20 an hour depending on position but keep in mind that this is negotiable.
Just like any other store front you will need some Display Cases and jars like the ones in the image above some mild decorations like some posters for example its really up to
you what you spend on decorations.you will need Glass Container to keep your medical weed fresh can get some nice looking jars in thrift stores or online to cut down on cost. Most display cases can be found used in craigslist or if you want new ones they range from around $300-$1000 depending on size and style.
Where to get your medical cannabis buds? most California weed shops/cannabis club dispensaries will usually use their members to get the medical marijuana most will work with you on consignment and you will pay them as their buds are sold also cannabis dispensaries will attract lots of vendors of cannabis products from concentrates to edibles including cannabis plant clones and flower most of the vendors will work with you and will leave the product in consignment Always pay them back you don’t want to burn your bridges Also to supplement your supply you can get a caregiver license and grow your own medicinal cannabis.