The Illinois Department of Financial and Professional Regulation is set to begin accepting applications for illinois dispensary license starting next week. However, the cost associated with going through this process is still unknown. Furthermore, we cannot pinpoint a concrete price yet due to the lack of information from the department. However, there has been healthy speculation that each license will be priced at least $50,000. Even if you can get a license. It will require a substantial investment in money and time.
Before we get into the application process details, let’s look at some relevant facts. Illinois is now accepting license applications after nearly a year of being in the planning phase. The state has received over 180 applications after reviewing and vetting potential dispensaries a year. To obtain a license, applicants must go through the same process.
How To Get An Illinois Dispensary License?
Illinois was one of the first states to get their MMJ laws in order, and right now. There is only a single governmental agency that regulates medical marijuana in this state. That’s the Illinois Department of Financial and Professional Regulation (now called IDFPR). Which came into being after voting on and passing the Medicinal Cannabis Pilot Program Act.
IDFPR will be taking illinois dispensary license applications from people who wish to grow, process, dispense or transport medical marijuana starting next week as long as they have an established business structure. This applies to both large and small-scale operators. The license fee will be $50,000 and can be paid in cash or by check.
Why The Difference Between Illinois and Other States?
Many factors go into getting a state illinois dispensary license. Which is why there is so much uncertainty about the cost of obtaining a license in Illinois. Small-scale operations don’t have to pay as high of a fee because they are more likely to use fewer resources when obtaining operating permits. On the other hand, more significant operations have more things to pay for and must be more careful about their business structure, which costs time and money throughout licensing.
This also means that applicants can feel free to be creative when setting up their businesses. For example, a dispensary could pay for its manufacturing license out-of-pocket and work directly with the state to get its medical marijuana license. It could go the opposite route and use an umbrella organization with a valid license. The choice is ultimately up to you, but it will cost a substantial amount of money.
How Much Should I Expect To Pay For illinois dispensary license?
There is no way to know how much a illinois dispensary license in Illinois will cost before the state releases more information. But we can look at other states to see if any clues can help us figure this out. For example, Arizona and New Jersey license prices have been dropping over time because there is so much competition between operators. Even with this being the case, there are still plenty of estimates to try and pick apart.
Remember that I am referencing early numbers here, and they may have changed by now. However, the numbers I’m discussing were used by the IDFPR to help determine the value of a license when it was first offered for sale. For example, an early estimate for the cost of a dispensary license in Arizona was $75,000. But this is low considering that operators could pay up to $150,000 in New Jersey City.
Building a profitable marijuana business isn’t as easy as it might seem, but the right market conditions can compensate for the lack of resources. And if you can do things right, you will see a good profit margin even with higher startup costs like those associated with illinois dispensary license. There will be no guarantee of success when you’re going into this kind of business. But at least that’s not the case when it comes to legal marijuana in Illinois.
The information above is intended for informational purposes only and should not be considered legal or medical advice. No attorney-client relationship is created between our firm and our readers through your use of this website. It would help if you did not rely upon any information contained on this website.