How to Start a Marijuana Delivery Service in Oregon

Like its neighboring states, Oregon has medical and recreational marijuana programs that are both well-established. Oregon was one of the states responsible for the early medical marijuana movement in the United States. It legalized medical cannabis in 1998. Medical marijuana is approved for the following conditions in Oregon:

Oregon’s medical cannabis law strictly prohibits deliveries; however, Measure 91 says: “deliveries may be made by the marijuana retailer to consumers pursuant to bona fide orders received on the licensed premises prior to delivery.” In other words, if a customer walks into a retail store and places an order, this can be delivered to them at a secondary location. Therefore, a person who wants to set up a delivery business in Oregon will have to have a retail store there first and foremost. It’s expected that the Oregon Liquor Control Commission will further define marijuana deliveries as a result of its upcoming rule-making process.

When was cannabis made legal in Oregon

While the medical cannabis program was approved and legalized in 1998, the recreational cannabis laws took a while longer. Measure 91 made it legal for adults (at least 21 years of age) to possess and cultivate marijuana for recreational use.

When was cannabis made legal in Oregon
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Oregon’s marijuana market

Since then, the industry has been booming. A whopping 418 medical marijuana dispensaries already exist in the state, but the recreational shops put that number to shame. Almost 1,200 marijuana retail shops exist across the state of Oregon. As one could imagine, it’s worth a lot. The industry was worth $5.6 billion in 2016 alone.

Owner requirements

Oregon’s law allows counties and cities to decide on rules for growers and sellers. If a municipality does not want marijuana, they’re allowed to ban them outright. So you’ll need to check with local laws to see if you can acquire the necessary licenses to operate and learn what it will take to comply with the rules.

License requirements

Because of its accepting laws when it comes to marijuana, Oregon has a number of helpful resources that encourage potential business owners to join in on this booming market. Check out the state of Oregon’s official website for the latest information.

When applying, you can expect to have to submit business records such as the name, legal entity, state registration number, and contact information. Without this information, the applicant will not be considered for further stages of the licensure process.

An applicant will additionally be required to prove the funding for their business. As part of this process, the applicant will have to pay required fees: $3500 for the registration fee, and $250 for the application fee (non-refundable). Payments are required for processing, and without them, your application will not be considered.

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The next stage requires applicants to produce government-issued, valid documentation. A criminal background check will also be done on each applicant. Next, the specific location of the potential business will be looked at.

A clear map of the location will need to be provided to confirm that the business will be outside of any residential zones since marijuana businesses are not allowed to be in those zones. The business also may not be within one thousand feet of any educational facility or any other dispensary. A document will have to be filled out and signed stating that the applicant will comply with these regulations (called the “School/Dispensary Proximity Affirmation Form”).

Financial requirements

The specifics of the up-front financial costs may depend on the specific location of the potential marijuana business. Be sure to check local regulations to find out what to expect. That said, in Oregon, recreational marijuana retailers can generally expect to pay $4750 and $250 (non-refundable) for the application fee.

Of course, there are plenty of other costs that need to be considered. In total, retailers can expect to pay at least $200,000 to start up their business. To be safe, business owners should have $400,000 available to do so.

How much does a marijuana delivery service in Oregon make?

Regardless of the state, marijuana dispensaries and delivery services gross plenty of money. It is common to make anywhere from $50,000 a year up to millions – perhaps even tens of millions of dollars.

Timeframe

There is no set amount of time for how long it takes to get a cannabis business up and running. It can easily take a year or more to acquire necessary licenses, get finances in order, and obtain suppliers and employees.

Links to consulting companies that can help open a marijuana delivery service in Oregon

Links
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Looking to start a marijuana delivery service in Oregon? These consulting companies can provide a wide range of services – including helping with state licensing requirements, completing applications, and running and stocking your business.

Alice

Need to know the latest and greatest of marijuana news? Alice has you covered! She loves to travel all around the globe and manages the pick up important bits and pieces from all over the place.... [Read full bio]

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