Opening a Dispensary in Arkansas
On July 8, 2016, a group lobbying for cannabis legalization called the Arkansas United for Medical Marijuana succeeded in collecting more than 106,000 signatures. This success led to the Arkansas Medical Marijuana Amendment, also known as Issue 6, decriminalizing the sale of marijuana in Arkansas.
Since the legislation passed, Arkansas has yet to see a marijuana business in operation. But this will not be the case for long. The state predicts the issuing of 32 licenses in the first round of applications alone. Keep in mind, Marijuana laws in Arkansas will allow for no more than 40 of these companies to operate throughout the state.
Arkansas has received around 300 applications for medical marijuana business licenses. Roughly 200 of the total applicants were in the quest for one of the 32 licenses to run a marijuana dispensary in Arkansas while the remaining were optimistic to secure one of the five marijuana cultivation permits. The commission’s plan is to award business licenses to successful applicants before the year ends, and MMJ sales are set to begin around March 2019.
How Much an Arkansas Marijuana Dispensary Can Make
By 2021, medical marijuana sales in Arkansas are estimated to hit $56,400,000. This figure is expected to grow as a result of the zealous support of the people. With a marijuana dispensary, a business can make anywhere from $50,000 to the million dollar mark (and more), each year.
While Arkansas will permit business owners to open marijuana dispensaries throughout the state, owners may run into some difficulty when it comes to county laws. Counties and Municipalities reserve the right to prohibit or ban the operation of marijuana in their region or town.
Applicants for dispensary license are required to have lived in Arkansas for at least seven years. They will need to provide proof of at least $100,000 in liquid assets or a surety bond amounting to $200,000. The assets will be reviewed and a license awarded based on proof of merit. Others include:
- The application fee of $7,500 (half is refundable)
- A license fee of $25,000 for cultivating dispensaries, and
- $2,500 for non-cultivating dispensaries
America Cannabis Company
The state is no longer accepting applications for now. However, this presents a unique opportunity for those contemplating to submit an application for the second phase. The numbers of applications are overwhelming, and the financial requirements are steep. With so much at stake, it’s in your best interest to work with expert marijuana consultants. At America Cannabis Company, we can help you prepare your business plan and put all the pieces of the application together as you wait for the opportune time. Contact us to learn more.