How to Start a Cannabis Delivery Service in Oregon

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Oregon’s recreational and medical cannabis industries are well-established. Oregon was one of the pioneers of the medical cannabis movement in the United States, when the state legalized medical cannabis in 1998.  Medical use of cannabis is approved for the following conditions in Oregon:

Oregon’s medical cannabis laws strictly prohibits delivery of cannabis product. There is one small loophole;  Measure 91 says: “deliveries may be made by the marijuana retailer to consumers pursuant to bona fide orders received on the licensed premises prior to delivery.” What this means is that if a customer walks into a retail store and places an order, their order could then be delivered to them at a different location. As such, it is required for anyone wishing to start a cannabis delivery service have an operating dispensary first.  It’s expected that the Oregon Liquor Control Commission will further define cannabis deliveries in the future.

 Legalization in Oregon

Oregon’s medical cannabis program was approved and legalized back in 1998. Recreational cannabis came 16 years later with the passing of Measure 91, making adult use legal for all adults 21 and up.

When was cannabis made legal in Oregon

When was cannabis made legal in Oregon – Image powered by Medicaljane.com

What is Oregon’s Cannabis Market Worth?

The industry has been booming. A whopping 418 medical cannabis dispensaries already exist in the state. At 1,200 there are almost three times as many recreational dispensaries  The industry was worth $5.6 billion in 2016 alone, and is of course expected to climb.

Owner’s Requirements

Oregon state law allows counties and cities to decide on the rules for both growers and sellers. If they don’t want a cannabis business in the area, they’re allowed to ban them outright. Make sure you are familiar enough with your local laws before attempting to open up a cannabis business of any kind.

Licensing Requirements

When applying, you will have to of course submit business records such as the name, legal entity, state registration number, and contact information. Without this information, your application will not be accepted.

An applicant will also have to prove that you have the necessary funding for your business. As part of this process, the applicant will have to pay: $3500 for the registration fee, and $250 for the application fee (non-refundable). These payments are needed before processing. Your application will not be accepted without them

The next stage requires each applicant to have government-issued, valid documentation. Applicants are also subjected to a criminal background check. Next, the specific location of the potential business will be looked at.

Applicants will need to show a map of where they plan to operate, to show they will be outside of any residential zones, as cannabis businesses are not allowed to operate there. The business also may not be within 1000 feet of any educational institution, nor any other dispensary. Applicants sign a form stating that they will comply with these regulations (called the “School/Dispensary Proximity Affirmation Form”).

Financial Requirements

Up-front financial costs may depend on the specific location of your cannabis business. Be sure to check local regulations to find out what you should expect. In Oregon, recreational cannabis businesses can usually expect to pay anywhere from 250-4750 dollars. In total, retailers can expect to pay at least 200 thousand to start up their business. To be safe, business owners should have $400,000 available to do so.

What is My Expected Profit?

Regardless of the state, cannabis dispensaries and delivery services gross plenty of money. It is common to make anywhere from 50 thousand a year up to millions, or even tens of millions of dollars.

Timeframe

Considering all the steps needed to open the business and the time needed to obtain product and employees, you’re looking at a year or more.

Consulting Companies

Links

Links – Image powered by Roomservicestore.com

The following consulting companies can help with a number of things – including helping with state licensing requirements, completing applications, and running and stocking your business.

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