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Minnesota Cannabis Licensing Overview
Minnesota’s Office of Cannabis Management (OCM) is opening the first general cannabis licensing application window on February 18, 2025. This application window will be open to all applicants, including verified social-equity, and standard applicants.
The Social Equity Verification application window will be open from January 15 to January 30, 2025.
More information about social equity eligibility can be found on the Minnesota Office of Cannabis Management (OCM) website.
The OCM recommends preparing cannabis business licenses applications ahead of time by completing a proposed business plan, security plan, business capitalization table, as well as standard operating procedures for quality assurance, inventory control, storage, diversion prevention, accounting and tax compliance. Doing so will ensure applicants have the ability to submit a comprehensive application during the limited application window.
The application process for a Minnesota cannabis license is challenging and time consuming. Contact CannDelta for complete Minnesota cannabis application support.
Minnesota Cannabis Licenses
There are 10 cannabis business licenses available in Minnesota:
- 1. Cannabis Microbusiness
- 2. Cannabis Mezzobusiness
- 3. Cannabis Cultivator
- 4. Cannabis Manufacturer
- 5. Cannabis Retailer
- 6. Cannabis Wholesaler
- 7. Cannabis Transporter
- 8. Cannabis Testing Facility
- 9. Cannabis Event Organizer
- 10. Cannabis Delivery Service
Each of these licenses authorizes businesses to engage in different cannabis related activities. A certain number of each license will be issued to applicants in the upcoming general application window.
Minnesota Cannabis Microbusiness License
Application Fee $500
No initial licensing fee
Renewal Fee: $2,000
This license is uncapped and awarded on a rolling basis.
The cannabis Microbusiness License in Minnesota allows businesses to engage in a variety of activities (called endorsements), including:
- Cultivation with an indoor canopy space of up to 5,000 sq ft, or half an acre outdoors
- Medical cultivation
- Extraction and concentration (up to 10,000 pounds of cannabis annually for all manufacturing endorsements)
- Medical cannabis processor
- Production of customer (consumer) products (up to 10,000 pounds of cannabis annually for all manufacturing endorsements)
- Retail operations (one (1) retail dispensary)
- Medical cannabis retailer
- On-site consumption
- Edible cannabinoid product handler
The Cannabis Microbusiness License in Minnesota allows the licensed business to engage in any combination of these activities. The activities that the licensed business engages in will determine the Minnesota cannabis application requirements. Notably, cultivation is not a requirement for opening a cannabis dispensary in Minnesota, providing greater flexibility for those looking to enter the retail market.
Microbusiness License holders can also have an event organizer license, but no other cannabis or hemp licenses.
Minnesota Cannabis Mezzobusiness License
Application Fee: $5,000
Licensing Fee: $5,000
Renewal Fee: $10,000
This license is awarded using a lottery system.
The cannabis Mezzobusiness License in Minnesota allows businesses to engage in a variety of activities (called endorsements), including:
- Cultivation with an indoor canopy space of up to 15,000 sq ft, or half an acre outdoors
- Medical cultivation
- Extraction and concentration (up to 10,000 pounds of cannabis annually for all manufacturing endorsements)
- Medical cannabis processor
- Production of customer (consumer) products (up to 30,000 pounds of cannabis annually for all manufacturing endorsements)
- Retail operations (one (3) retail dispensary)
- Medical cannabis retailer
- Edible cannabinoid product handler
A cannabis Mezzoobusiness licensee can engage in any combination of these activities. The activities that the licensed business engages in will determine the application requirements. As with the microbusiness license, cultivation is not a prerequisite for opening a cannabis dispensary in Minnesota with a Mezzobusiness License, offering flexibility for entrepreneurs focusing on retail.
Mezzobusiness License holders can also have an event organizer license, but no other cannabis or hemp licenses.
Minnesota Cannabis Cultivator License
Application Fee: $10,000
Licensing Fee: $20,000
Renewal Fee: $30,000
The cannabis cultivation license in Minnesota is tailored for those who want to focus exclusively on the cultivation of cannabis. This license permits the cultivation of up to 30,000 square feet of indoor growing space or two (2) acres of outdoor cultivation. It provides an excellent opportunity for cultivators to produce cannabis on a larger scale, catering to the needs of both retail and manufacturing operations.
Some of the activities businesses with a cannabis cultivation license in Minnesota can engage in include:
- Grow cannabis
- Harvest cannabis
- Package and label immature cannabis plants, seedlings, and flower for sale to other cannabis businesses
- Transport cannabis to a manufacturer on the same premises
- Other ancillary activities
A cannabis cultivator license holder may also hold licenses for manufacturing, industrial hemp cultivation, and event organizing.
Minnesota Cannabis Manufacturer License
Application Fee: $10,000
Licensing Fee: $10,000
Renewal Fee: $20,000
The Cannabis Manufacturer License allows a business to engage in activities surrounding the creation of cannabis products. This involves processing raw cannabis into products including:
- Edibles
- Concentrates
- Wax
- Oils
- Tinctures
- And more
After the manufacturing process, Cannabis Manufacturer License holders can package and sell products to other cannabis businesses. The Manufacturer License provides the flexibility to scale production and meet the demands of both retail and wholesale markets, playing a crucial role in the supply chain by transforming raw cannabis into finished goods ready for consumers.
A cannabis Manufacturer License holder may also hold cultivator and event organizer licenses.
Minnesota Cannabis Retailer License
Application Fee: $2,500
Licensing Fee: $2,500
Renewal Fee: $5,000
The Cannabis Retail License is specifically designed for those who want to focus on the retail side of the industry. This license allows entrepreneurs to operate up to five (5) retail dispensary locations, providing a significant opportunity to establish a robust presence in the market. Unlike microbusiness and mezzobusiness licenses, the Retail License is solely dedicated to the sale of cannabis products, without the need to engage in cultivation or manufacturing. This license is ideal for those who wish to concentrate on the retail experience, offering consumers high-quality cannabis products across multiple locations.
A cannabis Retailer License holder may also hold Delivery Service and Event Organizer licenses, but they cannot own or operate any other cannabis or hemp businesses.
Note that a licensed business cannot own more than one retail store per city or three per county.
Minnesota Cannabis Wholesaler License
Application Fee: $5,000
Licensing Fee: $5,000
Renewal Fee: $10,000
The Minnesota Cannabis Wholesaler License authorizes a business to purchase cannabis and cannabis products from licensed microbusinesses, mezzobusinesses, cultivators, and manufacturers. Wholesalers can then sell these products to licensed retailers, or any of the previously mentioned licenses.
Minnesota Cannabis Wholesalers can also hold a Cannabis Transporter, Cannabis Delivery, or Event Organizer License, but they cannot own or operate any other licensed cannabis or hemp businesses.
Minnesota Cannabis Transporter License
Application Fee: $250
Licensing Fee: $500
Renewal Fee: $1,000
The Minnesota Cannabis Transporter License allows a business to transport cannabis plants, products, artificially derived cannabinoids, hemp items, and hemp-derived products between various cannabis and hemp businesses, including cultivators, manufacturers, wholesalers, retailers, and testing facilities. All transportation of items previously mentioned needs to be done in a safe, secured storage that is a part of a motorized vehicle or in a locked storage container/compartment.
Cannabis Transport License holders can also have a delivery license, wholesaler license, or event organizer license, but they cannot own any other hemp or cannabis businesses or licenses.
Minnesota Cannabis Testing Facility License
Application Fee: $5,000
Licensing Fee: $5,000
Renewal Fee: $10,000
A cannabis Testing Facility License allows the holder to obtain and test cannabis plants, products, hemp, concentrates, and hemp-derived items from licensed cannabis microbusinesses, mezzobusinesses, cultivators, manufacturers, wholesalers, lower-potency hemp edible manufacturers, medical cannabis combination businesses, and industrial hemp growers.
Cannabis Testing Facility License holders are responsible for ensuring the safety of cannabis and cannabis products, labeling accuracy, and testing for:
- Contaminants
- Residual Solvents
- Foreign material
- Microbiological contaminants
- Heavy metals
- Pesticide residue
- Mycotoxins, and more.
With a cannabis testing license in Minnesota, you cannot own, operate, or be employed by any other cannabis or hemp business.
Cannabis Event Organizer License
Application Fee: $750
Licensing Fee: $750
Cannabis event organizers plan and host events featuring cannabis. This license allows the sale of cannabis, cannabis products, and hemp products to consumers at events that can last up to four (4) days. Organizers will still need to secure local approval and any required permits from local authorities.
Individuals or businesses holding the event organizer license cannot simultaneously have a cannabis testing license in Minnesota, lower-potency hemp edible manufacturer license, or a lower-potency hemp edible retailer license.
Cannabis Delivery Service License
Application Fee: $250
Licensing Fee: $500
Renewal Fee: $1,000
The Minnesota cannabis Delivery Service License authorizes businesses to deliver cannabis directly to customers. The delivery service can purchase cannabis and cannabis products from microbusinesses and mezzobusinesses with a retail endorsement, and cannabis retail businesses for the purpose of delivery. Cannabis and hemp products must be transported in a locked, secure compartment or container within the delivery vehicle, and must not be visible from outside.
Cannabis Delivery Service License holders can also have a retailer, wholesaler, transporter, and/or event organizer license within the limitations of the previously mentioned licenses. Delivery service license holders cannot have any ownership in a hemp license or business.
Minnesota Cannabis License Eligibility
Businesses applying for a Minnesota cannabis business license need to make sure the owners listed on the application meet eligibility requirements. Some of the requirements include:
- Being 21 years of age or older.
- Not having any disqualifying criminal convictions including controlled substances crimes, sale of cannabis to a minor, and more.
Additional eligibility requirements could be enforced after the final regulations are finalized for the general application window.
Cannabis License Requirements in Minnesota
The official general cannabis license requirements in Minnesota will be released before the application window opens. The application requirements, additional attestations, documents, and plans will vary depending on the license being applied for. Regardless, all license applications must include the following:
Basic Information About the Entity Applying for a License
- Name, address, and date of birth of the applicant.
- Business address and legal property description.
- Description of the planned business location, including square footage for cultivation, wholesaling, or retailing (if applicable).
Ownership and Control
- Full disclosure of management structure, ownership, and control (names, roles, percentage ownership).
- Statement of previous or current ownership interests in any cannabis business.
- Articles of incorporation, bylaws, partnership agreements, and other relevant corporate documents.
- Details of funding sources, operating and investment accounts, loans, and financial obligations.
Business Documentation
- Business plan covering expected size, growth projections, financial and operational details, environmental plan, and methods of record keeping.
- Proof of trade name registration.
- Security plan.
- Additional plans and documentation that’s dependent on the license being applied for.
Labor and Compliance
- Signed attestation of a labor peace agreement with a bona fide labor organization.
- Certification of compliance with all cannabis business regulations.
Management and Operations
- Identification of one or more controlling persons or managerial employees responsible for liaising with the OCM.
- Statement agreeing to respond to supplemental requests for information from the OCM.
Minnesota License Review & Issuance
After the general license application window closes, licenses could be issued using a lottery or merit-based scoring system. Regardless, of how the licenses are issued, each application will be scored based on the following:
- Security and record keeping.
- Employee training plan.
- Business plan and financial situation.
- Labor and employment practices.
- Knowledge and experience.
- Environmental plan.
If the OCM decides to issue licenses using a lottery system, these scores could be used to determine whether an application will be submitted into the draw.
Why Work With CannDelta?
Looking for a cannabis consulting firm in Minnesota? Partner with CannDelta to access a dedicated team committed to your success. With extensive experience across North America, we offer valuable insights into the ever-evolving cannabis industry. Our team is highly knowledgeable about Minnesota’s regulatory landscape and equipped with the tools to help you launch your cannabis business smoothly. Here’s how we can assist:
Comprehensive Support:
Enter the cannabis market confidently with our expert guidance. We help prepare, submit, and monitor your Minnesota cannabis application to ensure it meets compliance standards and stands out in the competitive market.
Business Plan Development:
Build a strong foundation for your cannabis business with our tailored business plans that meet regulatory requirements and promote sustainable growth.
Operational Plans and Procedures:
Our consultants create detailed operational plans that comply with Minnesota’s cannabis regulations and safeguard your business assets.
Zoning Support & Site Audits:
CannDelta provides zoning and location assistance, ensuring your site meets all cannabis business compliance requirements, helping you pass necessary site audits.
Inspections:
Stay compliant with our thorough site audits. We identify potential issues and offer solutions to maintain compliance and improve operational efficiency.
Marketing Package:
Stand out in Minnesota’s cannabis market with our marketing support. We help you build your brand and develop effective strategies to establish a strong presence.
Employee Staffing and Training Plan:
We offer strategic hiring and customized training programs to prepare your team for success in the cannabis industry.
Fill out the form below to connect with our Minnesota cannabis license consultants today!
Frequently Asked Questions
How Many Plants Can You Grow with a Growers License in Minnesota?
With a cannabis cultivation license in Minnesota, you can have up to 30,000 square feet of indoor growing space or two (2) acres of outdoor cultivation. Businesses with a cannabis mezzobusiness license can cultivate with up to 15,000 sq ft of indoor canopy space or up to one (1) acre outdoors. Lastly, those with a cannabis microbusiness license in Minnesota can cultivate with an indoor canopy space of up to 5,000 sq ft, or half an acre outdoors.
How Do I Open a Dispensary in Minnesota?
There are three licensing options for opening a dispensary in Minnesota. Businesses can apply for a microbusiness, mezzobusiness, or cannabis retailer license. The microbusiness license allows a business to open one (1) dispensary, while the mezzobusiness allows a business to open three (3) different dispensary locations. The cannabis retailer license is for businesses that want to own up to five (5) dispensaries. It’s important to note that a licensed business cannot own more than one retail store per city or three per county.
How Much Does it Cost to Open a Dispensary in Minnesota?
Opening a cannabis dispensary can cost anywhere between $250,000 to $1,000,000 or more. Some of the major expenses businesses face while opening a cannabis dispensary include the costs of licensing, purchasing or leasing a location, building-out a retail store, purchasing inventory, hiring staff, and much more.
How Do I Get a Cannabis License in Minnesota?
To get a cannabis license in Minnesota, businesses/individuals must apply during an open application window. Anyone interested in applying will need to create a comprehensive application that includes all of the documents, plans, and attestations that are required from the OCM. The required application fee must be paid at the time of application submission. Whether the applicant is awarded a license depends on the license issuance system that the OCM uses for the general application window. Those who are interested in obtaining a cannabis license should begin preparing ahead of time by completing a proposed business plan, security plan, business capitalization table, as well as standard operating procedures for quality assurance, inventory control, storage, diversion prevention, accounting and tax compliance.
