The cost of opening a cannabis dispensary varies significantly depending on location, size, and local regulations. On average, the startup costs range from $250,000 to $2 million. Here’s a breakdown of the main expenses:
Licensing and Application Fees
- Vary by state, ranging from $1,500 to $120,000
Examples:
- New Jersey: $1,500 to $12,000
- Mississippi: $40,000 for the first year ($15,000 application fee + $25,000 annual license fee)
- Missouri: $6,000 application fee + $10,000 annual renewal fee
Real Estate and Build-Out Costs
- Lease costs: $200,000 to $400,000 for 12 to 24 months
- Build-out costs: $150,000 to over $1,000,000
- Average cost per square foot: $200
Operational Costs
- Initial inventory and supplies
- Security systems
- Point-of-sale software
- Marketing and branding: $100,000 to $250,000
Ongoing Expenses
- Monthly operational costs: $40,000 to $60,000
- Annual staffing: Approximately $250,000
For an average-sized facility of around 1,800 square feet, the total cost is estimated at about $700,00059. However, it’s crucial to note that costs can vary significantly based on location and specific business requirements. Prospective dispensary owners should carefully research their local regulations and market conditions to develop an accurate budget.