Application Fees Licensing Fees Renewal Fees Oh My!!
Don’t think for a minute an average person can get into the legal cannabis business. It’s been completely taken over by ignoramuses and politicians who have priced the industry so high only well financed and/or wealthy people can actually get into the business.
Consider this; if you wanted to open a pizza shop because you made a great sauce and pizza dough, you can open up a shop on a shoe string.
Just about anywhere close to where you live there is a broken down shop to lease for cheap or another cheap space you can rent. There is so much used pizza shop equipment for sale you’ll be able to equip your shop really cheap.
With some elbow grease, a few thousand dollars for repairs and used equipment, plus a little more for opening food and you’re in business. Licensing expense is reasonable and pretty much up front and simple; just follow the local city/county rules.
Compare that to getting into the marijuana business. If you wanted to open a marijuana business in Ohio for example because you love weed and have knowledge to share, just to get in line you have to pay a non-refundable application fee up front for each license for each location you want to operate in.
That’s just the start and depending on which niche you were applying for you’ll have the insane license fees plus all the costs you’ll incur setting up your business.
Listed here is the licensing cost just to start; notice the “annual renewal fee”. This is simply outrageous.
Schedule of Fees in the State of Ohio – Your State Could be More or Less
|License Type Application Fee License Fee Annual Renewal Fee
Cultivator Level 1 $20,000 $180,000 $200,000
Cultivator Level 2 $2,000 $18,000 $20,000
Processor $10,000 $90,000 $100,000
Dispensary $5,000 $80,000 $80,000
If you want to be a Level 2 Cultivator which means you’re a grower with less then 3,000 square feet, you’ll need $20,000 up front to apply and pay for the license if you’re lucky enough to get one. Think about that; $20k and you haven’t spent a dime on property, building etc…
If you want to do retail, you’ll need $85k to apply and pay for the license. Again, $85k and you haven’t spent a dime on anything else.
The legalization of marijuana on a federal level is absolutely necessary. Allowing legalization state by state, from a business point of view practically makes it impossible for an average person to get into the business and that’s unfortunate. Not only that; it’s so expensive to get into the legal weed business the retail prices are out of this world.
The black market guys say thank you to the State of Ohio. They sell their weed for about half off the legal retail price in Ohio.
The legalized marijuana business needs small companies. They will help keep the larger companies in check and can lobby with government officials about fee’s etc.
Legalize marijuana now, with a stroke of a pen.