Minnesota

Understanding Minnesota Cannabis Licensing

Minnesota starts accepting applications for cannabis licenses on February 18th, 2025.

The licensing requirements have changed over the past several months in terms of how applications will be handled. Last summer 2024, a vetted lottery qualification process was opened for social equity applicants, and it was controversial and resulted in lawsuits that are still pending. About 1/3 of applicants were qualified. Others are still awaiting clarification on application deficiencies, and now a new round of licensing is opening.

Go Straight to Our Minnesota Cannabis License Application Documents and Services Page

On February 18th, the Office of Cannabis Management (OCM) will allow adults (residents from any US state) apply for either (1) a lottery that will award a limited number of larger production license types and retail licenses or (2) standard application process that will award an unlimited (uncapped) number of microbusiness, wholesale, delivery and transportation licenses. The lottery specifically includes: 150 Retail Licenses (75 social equity, 75 general), Large Cultivators (30,000 square feet of canopy), Large Manufacturers and Mezzobusinesses (15,000 square feet of canopy, plus manufacturing and retailing).

Minnesota Cannabis Microbusiness Licensing is looking like an attractive option for almost everyone, given that it allows for producing and selling your own products, but also won’t be limited by anything other than your ability to find a suitable location and arrange for financing. This micro license allows for a comfortable 5000 square feet of indoor flowering canopy, plus you can manufacture and sell all types of cannabis and cannabis products yourself, without sacrificing the retail markup. Even if you want one of the larger license types that’s being awarded by lottery, you should still apply for a Minnesota cannabis microbusiness license as a fallback plan, since most entrants won’t win the lottery, statistically speaking. The application fee is an affordable $500.

 WE CAN HELP WITH ALL MINNESOTA CANNABIS APPLICATION DOCUMENTS!Everyone is currently awaiting more information on the length, format and specific contents the OCM will want to see in the MN cannabis license application documents. Based on what happened last August, we expect strict page limits on pre-published pdf forms, and specific questions that will need to be answered by consultants.

The OCM’s FAQ page shows the following as required application documents for both lottery and uncapped licensing:

How Many MN Cannabis Licenses Will be Awarded in the Lottery?

The OCM has published the following information about license caps:For licenses the limited number of licenses that will be awarded in the lottery (half social equity, half general licensing pool), the maximum number of licenses that the office may issue are:(1) MN cultivator licenses, 38;(2) MN cannabis manufacturer licenses, 24;(3) MN cannabis retailer licenses, 150; and(4) MN cannabis mezzobusiness licenses, 30.That’s not very many licenses! That means it will be hard to win the lottery, but for MN Cannabis Retail Dispensary Applicants in particular, if you don’t want to cultivate or manufacture as part of a micro license, the lottery is really your only option.

How Much are the Minnesota Cannabis License Application/Renewal Fees and What are the Available License Types?

Of course the cost of starting a cannabis business in MN is much higher than the actual licensing fees, but if you want to know the specific fees to be paid to the OCM, that information is here:

• • MN Cannabis Microbusiness License (application fee $500; no initial license fee; renewal license fee $2,000)

• • MN Cannabis Mezzobusiness License (application fee $5,000; initial license fee $5,000; renewal license fee $10,000) – Same application document requirements as the microbusiness above.

• • MN Cannabis Cultivation License (application fee $10,000; initial license fee $20,000; renewal license fee $30,000)

• • MN Cannabis Manufacturing License (application fee $10,000; initial license fee $10,000; renewal license fee $20,000)

• • MN Cannabis Retail Dispensary License (application fee $2,500; initial license fee $2,500; renewal license fee $5,000)

• • MN Cannabis Wholesaler License (application fee $5,000; initial license fee $5,000; renewal license fee $10,000) – See Our Template Package For This Type

• • MN cannabis transporter license (application fee $250; initial license fee $500; renewal license fee $1,000) See Our Template Package For This Type

• • MN cannabis testing facility (application fee $10,000; initial license fee $10,000; renewal license fee $20,000) We do not provide documents for this license type.

• • MN cannabis event organizer (application fee $750; initial license fee $750) We do not provide documents for this license type.

• • Cannabis delivery service (application fee $250; initial license fee $500; renewal license fee $1,000) See Our Template Package For This Type

• • Lower-potency hemp edible manufacturer (application fee $250; initial license fee $1,000; renewal license fee $1,000) Contact Us to Discuss

• • Lower-potency hemp edible retailer (application fee $250 per retail location; initial license fee $250 per retail location; renewal license fee $250 per retail location) Contact Us to Discuss

• • Medical cannabis cultivator (application fee $250; no initial license fee; no renewal license fee) Contact Us to Discuss

• • Medical cannabis processor (application fee $250; no initial license fee; no renewal license fee) Contact Us to Discuss

• • Medical cannabis retailer (application fee $250; no initial license fee; no renewal license fee) Contact Us to Discuss

• • Medical cannabis combination business (application fee $10,000; initial license fee $20,000; renewal license fee $70,000) Contact Us to Discuss

What Are the Costs of a Minnesota Cannabis License Beyond Just Licensing?

In terms of the MN cannabis licensing cost, plan to spend between $250k and $500k for most license types, depending on the cost of your facility, its size and how much you spend on branding and decor. You’ll also have to have money for security systems, inventory, labor and lots of other smaller equipment items and supplies.

Cultivation costs much more:

The Minnesota Cultivation License – Because You Really Want an MN Grow License, Big or Small

Cultivation is the most difficult and most expensive of the cannabis licensing types. It takes lots of experience to grow easily sellable high quality cannabis because so many things can go wrong with biological processes. Plants don’t behave predictably, and there are many environmental factors that must be balanced to get the most out of them. You have to get to know your media, your fertilizers, your genetics, and also avoid bugs and diseases. In an open market, such as California, only the strong cultivators survive. In a limited-license environment, less experienced growers can still sell their products. The earlier you get into the industry, the easier it will be to succeed with a Minnesota grow license.Expect to spend about $400 per square foot building out a pre-existing warehouse. This cost is due primarily to all of the environmental equipment needed to offset heat and moisture and contamination in a cultivation facility. You really need to create and maintain lab-like sanitary conditions, but with massive amounts of cooling, drying and air purification. So the cost of a cultivation license in Minnesota isn’t high for the license itself; it’s high for the development of the facility.

(Note, Jennifer Martin, the company owner, is an indoor cultivation expert with 30 years’ experience.)

Who can get a Minnesota cannabis license?

You are eligible for a Minnesota cannabis license if you are a US citizen over the age of 20. There are no disqualifying criminal convictions or state residency requirements for obtaining a Minnesota cannabis license.

Can I Qualify as a Social Equity Applicant for a Cannabis License in MN?

Unfortunately, as of January 31st, 2025, the social equity license opportunity in MN has closed. The OCM is no longer qualifying these applicants. They are holding a lottery for the applicants who have already verified their status and will award social equity licenses in the summer of 2025.

Where Can the Minnesota Cannabis Laws and Regulations be Found?

Here is the Minnesota Cannabis Law that legalized adult-use cannabis and created a regulatory framework to produce and sell it. This is the statute, HF 4757, that passed in 2023 and contains some relevant regulatory requirements

Here are the Minnesota Cannabis Draft Regulations (to be finalized in the summer of 2025)

The two links above comprise the Minnesota Cannabis Rules and the latter will be somewhat different once it gets finalized.

It’s a lot to keep up with, so let experts like us help you make it easy!

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