HOW MUCH DOES IT REALLY COST TO OPEN A DISPENSARY
September 5, 20250
Opening a cannabis dispensary is no small feat — it’s a high-stakes venture with startup costs that can range from $250,000 to over $1.5 million, depending on your location, business model, and regulatory environment. Here’s a breakdown of the major cost centers:
💸 Key Expenses to Open a Dispensary
🏛️ Licensing & Application Fees
- Application fees: $2,500 to $100,000 (non-refundable)
- License fees: $25,000 to $500,000
- Annual renewal: $5,000 to $100,000
These vary wildly by state and city. Competitive markets like California or New York can push fees higher.
🏢 Real Estate
- Lease: $5,000–$50,000/month depending on location
- Purchase: Often exceeds $1 million for compliant commercial property
- Renovations: $57–$77 per square foot
Zoning restrictions mean you’ll need cannabis-friendly property, which can be scarce and expensive.
🔐 Security & Compliance
- Security systems: $75,000–$135,000
- Legal/accounting services: $50,000+ annually
Cannabis laws are strict — you’ll need airtight compliance to avoid shutdowns.
👥 Staffing & Operations
- Wages: $13–$20/hour per employee
- Inventory: $400–$4,000 per pound depending on quality
- Marketing: 3–9% of projected revenue
Hiring experienced budtenders and sourcing premium products are key to success.
💰 Total Estimated Startup Cost
| Type of Market | Estimated Cost Range |
|---|---|
| Emerging Market | $250,000 – $500,000 |
| Mature/Competitive | $750,000 – $1.5 million+ |