New Jersey finally has an adult-use market in place. In this article, our cannabis business consultants at Quantum 9 explain the process of obtaining a New Jersey retailer license, so that you can open a cannabis dispensary in the state.
Current medical cannabis dispensaries brought in around $150 million $180 million in sales in 2020. There are currently 15 medical marijuana facilities in New Jersey, which means that each cannabis dispensary is making anywhere $12.5 million to $15 million in revenue yearly.
Keep in mind, there are only 77,000 registered marijuana patients at the moment. New Jersey has a population of 8.8 million people and the demand for marijuana is high. Additionally, revenue for medical marijuana dispensaries in New Jersey is growing. With New Jerseys’s new adult-use cannabis market, we can expect revenue to skyrocket for those who have a New Jersey retailer license.
Check out where current medical marijuana dispensaries are in New Jersey;
New Jersey Retailer License
In order to operate a dispensary in New Jersey, you must obtain a Class 5 Cannabis Retailer license that the commission issues for the location at which the cannabis is sold. The commission in New Jersey is to determine the maximum amount of licenses. With that, 35 percent of the licenses shall be conditional licenses. 25 percent of the total number of the licenses, which includes conditional licenses, are designated for microbusinesses.
With that, it is important to know what licenses are available within the state. You can find what licenses in New Jersey are available here.
How many Retailer Licenses are Available in New Jersey?
Firstly, the bill for a recreational cannabis market in New Jersey establishes the number of licenses. With that, the commission is to issue a sufficient amount of licenses in order to meet the market demands of New Jersey. Additionally, the commission is to make requests for new applications for additional licenses as deemed necessary.
How Do I get a Retailer License in New Jersey?
First and foremost, it is important to work with a reliable cannabis consultant in order to have a chance in the application pool. They will create a cannabis business plan that will include information that is vital to an application. This information includes and is not limited to:
- Operation plans
- Security plans
- Labor compliance plans
- Environment plans
Our cannabis consultants in New Jersey at Quantum 9 have plentiful experience in creating these plans. Contact us if you want to open a dispensary in New Jersey.
In order to obtain a Class 5 Cannabis Retailer license, you must:
- First, you have to apply for a license in the way that the department requires you to.
- Secondly, you have to have at least one significantly involved person within the application who has resided in New Jersey for at least 2 years of the date of the application.
- Thirdly, you must have almost everyone within that application get a background check. So, this includes any owner, other than an owner who holds less than five percent investment interest in the cannabis retailer in New Jersey. Also, this includes a member of the group that holds less than a 20 percent investment interest in the cannabis retailer. With that, no member of that group holds more than five percent interest in the total group investment. This person also must lack authority in decision-making related to the cannabis retailer’s operations.
Rules for a Retailer License in New Jersey
In addition to the requirements above, the commission is to adopt rules that:
- Provide for the annual renewal of a Class 5 Cannabis Retailer License in New Jersey.
- Additionally, the commission establishes application, licensure, and renewal of licensure fees for a cannabis retailer. This is in accordance with the rules within the bill.
- Lastly, the commission shall require a cannabis retailer in New Jersey to meet any public health and safety standards. This also includes industry best practices and all applicable regulations that the commission establishes. Contact our cannabis consultants in New Jersey for additional help on this part of the application. This can make or break a cannabis application so it is important that you work with a reliable cannabis consultant.
What are the Application Fees?
The application fee for a retailer license in New Jersey is $20,000. However, $18,000 of that is refundable if your application is rejected.
The fees are to be in the form of a schedule that imposes a greater fee for locations with more square footage. All fees deposit into the “Cannabis Regulatory, Enforcement Assistance, and Marketplace Modernization Fund.”
What Can I Do With a Retailer License in New Jersey?
A licensed cannabis retailer can operate a cannabis consumption area at which the on-premises consumption of cannabis items either obtained from the retailer or brought by a person to the consumption may occur. With that, each licensed cannabis retailer can only have one cannabis consumption area in operation.
Additionally, this cannabis consumption area may be an indoor structurally enclosed area within the licensed cannabis retailer that is separate from the area in which retail sales of cannabis items occur. Or, the consumption are can be an exterior structure on the same premises as the retailer. This can either be separate from or connected to the retailer.
Finally, if you have a Class 5 Cannabis Retailer license that is approved for a cannabis consumption area can transfer cannabis items purchased by a person in its retail establishment to the person within the cannabis consumption area.
If you have a Class 4 Cannabis Retailer license in New Jersey, you can not transfer to the consumption area a number of cannabis items that exceed the limits made by the commission.
Contact us for more information about this license type.
The cannabis industry in New Jersey is about to grow rapidly. The bill offers a lot of different options for cannabis dispensaries that other states do not offer. This will create a variety of competitive dispensaries within New Jersey. Contact our cannabis consultants in New Jersey so that you can open the best shop possible.