How To Open A Dispensary In Ohio

Overview

Are you wondering about how to open a dispensary in Ohio or start another type of cannabis business? If you’re looking for clarity on the requirements and next steps, this page offers the latest information and insights on Ohio’s cannabis industry.

In Ohio, both medical and recreational cannabis are legal. Medical cannabis has been available since 2016, and in November 2023, voters approved Issue 2, which legalized recreational cannabis. This now allows adults to legally possess, purchase, and cultivate cannabis for personal use.

Ohio’s Path to Recreational Legalization

Filing and Initial Signature Collection

• July 27, 2021: The Coalition to Regulate Marijuana Like Alcohol (CTRMLA) filed the initiative “An Act to Control and Regulate Adult Use Cannabis” to legalize recreational marijuana for adults 21+.
• December 20, 2021: CTRMLA submitted signatures but fell short by 13,062, with a deadline of January 14, 2022, to collect more.
• January 28, 2022: The campaign successfully gathered enough signatures to send the issue to the state legislature.

Postponement and Continued Legislative Efforts

• May 13, 2022: An agreement was reached to postpone the legalization issue from the November 2022 ballot to 2023. CTRMLA was required to restart signature collection as the Ohio General Assembly did not act by May 3, 2023.
• May 22, 2023: Ohio State Reps. Casey Weinstein and Jamie Callender introduced House Bill 168, aligning with CTRMLA’s efforts to place an adult-use legalization measure before voters in 2023.

Signature Collection and Ballot Placement

• August 3, 2023: CTRMLA submitted over 6,000 additional signatures for a marijuana legalization initiative, after falling short in a prior submission.
• August 16, 2023: The Ohio Secretary of State confirmed that the initiative would be on the November ballot as Issue 2.
• August 24, 2023: The Ohio Ballot Board approved the summary language for Issue 2, which aimed to legalize and regulate cannabis use, possession, and cultivation for adults 21+.

Public Support and Survey Results

• August 29, 2023: A survey revealed that 59% of Ohio voters supported cannabis reform, with increased support from GOP voters.
• October 18, 2023: Another survey showed over 57% of Ohio registered voters supported recreational marijuana legalization, with roughly 35% opposing it.

Election and Legalization

• November 7, 2023: 57% of voters supported Issue 2, leading to the legalization of cannabis in Ohio, effective December 7, 2023.
• November 29, 2023: Ohio lawmakers proposed changes to the bill, including allowing municipalities to ban cannabis operations/home cultivation, adjusting tax revenue allocations, and creating new funds.

Governor’s Response and Legislative Actions

• December 21, 2023: Governor Mike DeWine, initially opposed to legalization, called for swift action to establish regulated marijuana sales outlets. He supported a Senate bill allowing medical dispensaries to begin adult-use sales within 90 days.

Expedited Sales and Law Revisions

• April 9, 2024: Ohio lawmakers advanced a plan to expedite recreational marijuana sales by June 2024, allowing dual licenses for existing medical marijuana operators.
• May 1, 2024: Lawmakers revised marijuana laws, focusing on tax revenue allocation, home growing regulations, and public smoking restrictions.

Implementation of Sales and Licensing

• May 13, 2024: Regulations were approved allowing adults 21+ to purchase/possess up to 2.5 ounces of cannabis and grow up to six plants per person.
• June 7, 2024: The Division of Cannabis Control (DCC) opened applications for dual licenses for existing medical dispensaries.
• June 21, 2024: The DCC issued provisional licenses to 62 medical dispensaries, preparing them for adult-use cannabis sales. Final certification required upgrades in technology and security, with a final deadline for license issuance by September 7, 2024.

Opening of Recreational Sales

• August 6, 2024: Recreational cannabis sales officially opened to the public in Ohio. In the first 12 days, the state generated $38.4 million in revenue, with $22.5 million from adult-use sales and $14.9 million from medical sales.

2025 Updates

• February 26, 2025: The Ohio Senate passed a bill that would significantly amend the state’s voter-approved marijuana law. The proposed changes include cutting the allowable number of homegrown plants in half, introducing additional criminal penalties, and removing certain social equity provisions. It now awaits review in the House.

How big is the opportunity?

A forecast from Statista estimates Ohio marijuana sales to reach roughly $1.3 billion  by 2025. With a population of 12 million, a limited licensing structure, and ongoing efforts for recreational legalization, Ohio is a promising state to start a cannabis business.

Local Cannabis Restrictions and Laws

In Ohio, local governments cannot ban marijuana use or home cultivation, nor can they impose taxes on marijuana businesses. However, they do have the authority to prohibit new adult-use dispensaries. Existing medical dispensaries can challenge such prohibitions through a voter referendum during the next general election.

Currently, many municipalities in Ohio, particularly suburbs and smaller towns, are planning to ban recreational marijuana dispensaries. The list of these municipalities may grow, though some bans could be temporary. Ohio currently has 120 certified medical cannabis licensees and 17 provisional licensees, operating a total of 126 dispensaries statewide. Many of these dispensaries plan to apply for dual-use licenses to serve both medical and adult-use markets.

Key Considerations for Dispensary Location

• Zoning Restrictions: Dispensaries must be at least 500 feet away from:
  • Schools, playgrounds, and childcare centers
  • Religious institutions
  • Public parks and addiction treatment facilities
• Local Municipality Bans: Many municipalities, particularly in suburbs and smaller towns, are planning to ban recreational marijuana dispensaries, though some bans could be temporary. Research local ordinances before signing a lease, and keep in mind that existing medical dispensaries may challenge these bans through a voter referendum in the next general election.
• Cannabis-Friendly Real Estate: Work with a real estate agent specializing in cannabis properties.

Medical Marijuana Program Opportunities

In June 2016, Ohio became the 25th state to legalize medical marijuana after Gov. John Kasich signed into law H.B. 523, establishing the framework in the state. The law came into effect on September 8th, 2016. The bill can be viewed here.

The passage of this law assigned three agencies to share regulatory oversight:

• Ohio Department of Commerce: Develops rules for licensing and regulating cultivators, processors, and testing labs.
• The Board of Pharmacy: Oversees the patient and caregiver registry and is in charge of licensing retail dispensaries.
• State Medical Board: Oversees physicians and issues certificates to recommend.

Patients must be 18 years or older, a resident of Ohio, and diagnosed with a qualifying condition such as AIDS/HIV, Alzheimer’s disease, epilepsy, and cancer. On June 9th, 2021, Huntington’s disease, terminal illness, and spasticity were added to the list. For a specific list of conditions to be eligible for a medical marijuana card in Ohio, view here.

Since the program began in 2019, Ohio has witnessed 428,682 patients registered for medical marijuana as of May 28, 2024. 24,690 are patients with veteran status, 25,624 with indigent status, and 1,459 with a terminal diagnosis.

Medical Marijuana Ohio Dispensary License Application

Medical Marijuana Retail Dispensaries are permitted to acquire medical marijuana from processors and dispense or sell it to patients. When opening a dispensary in Ohio, the costs include a $5,000 application fee, a $70,000 Initial Fee (Certificate of Operation), and a $70,000 Biennial License Renewal Fee. As of May 28, 2024, there are 124 Certificates of Operation dispensaries and 8 active provisional Ohio marijuana dispensary licenses.

On September 19th, 2021, the Ohio Board of Pharmacy and Medical Marijuana Control Program issued a request for dispensary applications, which may license up to 73 new medical marijuana dispensaries. This is preceded by the Ohio Board of Pharmacy voting on April 19, 2021, to increase the state’s current number of medical dispensaries from 57 to a total of 130. Among the reasons behind the increase are high product demand and an increase in the patient population. The board also wanted to increase access for patients who live far from current dispensaries and create more competition to drive prices down.

According to the 2021 Request for Applications and Dispensary Application Instructions, other information that is needed for the license application process are:

• To be considered for a dispensary license in Ohio, applications and all documents must be submitted electronically. This is available at www.medicalmarijuana.ohio.gov/dispensaries/.
• Each application must include a $5,000 application fee. Applicants shall only be awarded a number of provisional dispensary licenses for which they demonstrate sufficient liquid assets in their submissions to the Board.
• The Board will conduct a lottery to award provisional dispensary licenses.

For more information, you can check out the document here.

On November 18th, 2022, the application period for provisional licenses to operate medical dispensaries closed.

Other Medical Cannabis License Types

In addition to dispensary licenses, there are three other Ohio cannabis license types: cultivator licenses, processor licenses, and laboratory testing licenses. As of October 30, 2023, the state has granted 23 Level I cultivator licenses, 14 Level II cultivator licenses, 46 provisional processor licenses, and 10 provisional testing licenses.

Medical Marijuana Cultivators are allowed to grow, deliver, or sell medical marijuana to processors. Costs for a Level I Cultivator license include a $20,000 application fee, $180,000 for the initial license, and a $200,000 renewal fee. For Level II, fees are $2,000 for the application, $18,000 for the initial license, and $20,000 for renewal. Currently, the application period for cultivator licenses is closed. For more details on Ohio marijuana cultivators, see here.

Medical Marijuana Processors are authorized to acquire marijuana from cultivators, process it for sale, and deliver or sell it to dispensaries. The processor license involves a $10,000 application fee, $90,000 for the certificate of operation, and a $100,000 annual renewal fee. The application period for processor licenses is also closed. For more information on Ohio marijuana processors, see here.

Medical Marijuana Laboratories are licensed to acquire cannabis from other licensed businesses and conduct testing. Fees for a laboratory license include a $2,000 application fee, $18,000 for the certificate of operation, and $20,000 for annual renewal. The application period for laboratory licenses is currently closed. For more details on Ohio marijuana laboratories, see here.

How To Get A Dispensary License In Ohio

To get a dispensary license in Ohio, existing medical marijuana license holders can apply for a non-medical cannabis license starting June 7th, 2024. The Division of Cannabis Control offers opportunities for Dual-Use Conversion and 10(B) Dispensary licenses under the statute approved by Ohio voters.

1: Determine Which Ohio Dispensary License Application Path Applies To You

Dual-Use Conversion License

If you already operate a licensed medical marijuana facility and want to serve recreational customers at the same location, you may apply for Dual-Use Conversion.

10(B) Dispensary License

If you want to open a new adult-use dispensary location, and you are:

• A medical cultivator (Level I or II)
• Or a medical dispensary with no common ownership in cultivation or processing
  you may be eligible to apply under Rule 10(B).

2: Apply for a  Dual-Use Conversion License (If Applicable)

Eligibility

Any existing medical marijuana cultivator, processor, testing laboratory, or dispensary that wants to participate in the non-medical cannabis market at their current location must apply for a dual-use cannabis license.

Timetable

Key dates for the application process are:

• Application Period Opens: June 7, 2024
• Application Review Begins: June 7, 2024
• Licenses Awarded By: September 7, 2024

Applications are reviewed on a first-come, first-served basis, with priority given to cultivator, processor, and testing laboratory applications to ensure supply chain efficiency.

Application Requirements

The complete application packet includes:

1. Fillable PDF Application Document
2. Dual-Use Applicant Attestation
3. Tax Authorization Form

These documents must be completed, signed, and submitted together. Each application must be specific to the facility license (e.g., separate applications for cultivator, processor, and dispensary licenses).

The application must be submitted in one of two ways:

• Email: Submit the complete packet to DCCApplications@com.ohio.gov with the appropriate subject line.
• State of Ohio File Drop: Use the State of Ohio File Drop, followed by an email notification to the Division.

Application Review

The DCC reviews applications in the order received. Incomplete applications will be returned for correction within 10 business days. Upon submission of a complete application, a provisional license will be issued through the DCC eLicense system.

Certificate of Operation Key Review Items

1. Individual Badging and Background Checks:
   • All relevant individuals must have an active employee badge beginning with “CCE.”
   • Fingerprints for BCI and FBI background checks are required for those without an active badge.
2. Point-of-Sale Updates:
   • Dispensaries must demonstrate their point-of-sale systems can handle both medical and non-medical sales, transmit sales to Metrc, and comply with tax and labeling requirements.
3. Surveillance:
   • Compliance with published security and surveillance standards is mandatory before a Certificate of Operation is issued.
4. Standard Operating Procedures (SOPs):
   • SOPs must ensure compliance with all relevant rules and include procedures for preventing underage sales, maintaining visitor logs, and handling inventory for medical and non-medical sales.
5. Compliance and Inspections:
   • Facilities must resolve any outstanding deficiencies, fees, or ownership changes. Inspections may be required before issuing a Certificate of Operation.
6. Training:
   • Dispensaries must document and maintain records of staff training on dual-use sales requirements.
7. DCC Meeting:
   • Controlling interest holders must attend a meeting with the Division, which can be conducted in person or virtually.

3: Apply for a 10(B) Dispensary License (If Applicable)

10(B) dispensary licenses are intended for new dispensary locations allocated to current medical marijuana cultivators and dispensaries.

Eligibility

The eligibility for 10(B) dispensary licenses is determined based on the Ohio cannabis license type and status:

• Level I Medical Marijuana Cultivators: Entities with a certificate of operation or provisional license can apply for three dispensary licenses per entity at designated locations.
• Level II Medical Marijuana Cultivators: Entities with a certificate of operation or provisional license can apply for 1 dispensary license per entity at a designated location.
• Medical Marijuana Dispensaries: Dispensaries with a certificate of operation or provisional license, without common ownership or control with any cultivator or processor, can apply for one dispensary license per entity at a designated location.

The Division will review records to determine eligibility and notify entities of their eligibility status and the number of licenses they can apply for.

Application Requirements

To be considered complete, the application must include:

1. A filled-out PDF application document.
2. Completed 10(B) Applicant Attestation.
3. Completed Tax Authorization Form.
4. $5,000 application fee payment.

The application must be submitted in one of two ways:

1. Email Submission: Email the complete application packet to DCCApplications@com.ohio.gov.
2. File Drop Submission: Submit the application packet via the State of Ohio File Drop and email a notification to DCCApplications@com.ohio.gov.

Initial Application Review and Drawing

Initial Application Review

Upon submission, applications will be reviewed for completeness. If incomplete, applicants will have 10 days to address deficiencies. Completed applications must be submitted by June 14, 2024, to be entered into the drawing.

Drawing Process

The drawing, conducted by the Ohio Lottery Commission on June 21, 2024, will use a Random Number Generator to assign rankings to applications. The results will be certified and posted on the Division’s website.

Phases One and Two: Site Selection

Phase One

• Round One: Begins on July 1, 2024. Applicants submit a Facility Site Location Application indicating up to three preferred sites.
• Review: The Division reviews site selections to ensure they are not within one mile of existing dispensaries or other proposed sites.
• Subsequent Rounds: Additional rounds may be conducted if initial site selections are not approved.

Phase Two

• Regional Districts: The Division will establish regional districts and allocate licenses accordingly.
• Site Selection: Applicants submit their site selections within assigned regional districts. The review process will ensure sites are not within one mile of existing or previously approved sites.

Provisional Licensing

After site selection, the following must be demonstrated within 45 days:

• Site Control: Ownership or active lease of the property.
• Local Zoning Compliance: No local restrictions preventing dispensary operation.
• Prohibited Facilities Compliance: The site must not be within 500 feet of certain prohibited facilities.

Once these requirements are met, the Division will issue a provisional license.

Important Dates

• Application Period Opens: June 7, 2024
• Applications Due: June 14, 2024
• License Drawing: June 21, 2024
• Phase One Begins: July 1, 2024
• Phase Two Begins: Late July 2024
• Licenses Awarded By: September 7, 2024

Applicants are encouraged to review the relevant Ohio Revised Code and Ohio Administrative Code sections and seek legal counsel if necessary.

How Much Does It Cost To Open A Dispensary In Ohio?

Opening a dispensary in Ohio costs at least $75,000. This includes a $5,000 application fee and a $70,000 initial fee for the Certificate of Operation. Dispensary licenses must be renewed every two years, with a biennial renewal fee of $70,000. Additional costs such as real estate, security, staffing, and inventory can significantly increase the total startup cost.

Preparing to Open: From Provisional License to Certificate of Operation

Once you receive a Provisional Dispensary License, you must complete a series of critical steps before you’re allowed to open your doors. These are governed by the Ohio Administrative Code and outlined by the DCC’s official guidance.

Key Requirements for a Certificate of Operation

A Certificate of Operation is the final approval needed to legally begin cannabis sales. You must obtain it within 12 months of receiving your provisional license. Below is an overview of what’s required:

Submit Documentation to the DCC

You must send required materials via email or file drop, including:

• Proof of financial responsibility (liability insurance + $50,000 bond or escrow)
• Correspondence with local government and law enforcement
• Foundational employee training materials (per O.A.C. 3796:6-3-19)
• All advertising assets (signs, logos, educational materials)
• Secretary of State business registrations
• Full disclosure of ownership, control, and financial interest (O.A.C. 1301:18-3-04)
• Site/floor plans showing secure access and surveillance (O.A.C. 1301:18-8-02)
• Standard Operating Procedures (SOPs)

Operational Requirements

• Responsible Party: You must designate at least one person to oversee daily operations.
• Employee Badging: All employees, owners, and officers must be badged and affiliated in the state’s eLicense portal.
• Metrc Admin: Assign a Metrc administrator to handle inventory reporting.
• Tax Compliance: You must be current on all taxes before inspection.
• Agreement Letter: You’ll receive this from the DCC to sign before inspection.
• Inspection Readiness: Only request inspection when fully ready to operate.

Final Inspection & POS Validation

The DCC will inspect your facility and require a test sale to verify your point-of-sale system is compliant. It must:

• Differentiate between medical and adult-use sales
• Report accurately to Metrc and OARRS
• Apply sales and excise taxes correctly
• Generate compliant labels and receipts
• Enforce purchase limits (e.g., no more than 10 day units for adult-use consumers)

Once your dispensary passes inspection and pays the $70,000 Certificate of Operation fee, you’ll receive final approval to begin operations.

How To Start A Dispensary in Ohio

Create a Business Plan

Starting with a solid business plan is essential. Your plan should include your dispensary’s mission, market analysis, operational model, projected startup costs, and financial forecasts. A comprehensive business plan not only guides your actions but also strengthens your position when seeking funding or partnerships.

Secure Funding

Opening a dispensary in Ohio requires significant capital investment. Ensure you have enough funding before applying for a license.

Funding Options for Ohio Dispensary Owners:

1. Self-Funding: Ideal if you have personal capital.
2. Private Investors: Many cannabis businesses rely on angel investors or venture capital.
3. Cannabis-Friendly Loans: Some financial institutions cater specifically to cannabis entrepreneurs.
4. Equity Partnerships: Bring in financial partners to help meet capital requirements.

Ohio requires dispensary owners to prove financial stability, so secure funding before applying.

Apply for a Dispensary License

For a detailed list of application requirements and deadlines, please refer to the “How to Get a Dispensary License in Ohio” section above.

Choose a Compliant Location

Your dispensary must be located in a zoning-approved area and meet all state and local distance requirements. A compliant location also needs to support Ohio’s mandated security infrastructure and access controls. Research local ordinances carefully to avoid delays or disqualification.

Build Your Dispensary Team

Hiring skilled employees is crucial to running a compliant and successful dispensary.

Essential Dispensary Staff:

• Dispensary Manager: Oversees operations and compliance.
• Budtenders: Assist customers and handle sales.
• Security Personnel: Ensures compliance with Ohio safety laws.
• Inventory Specialist: Manages product tracking and regulatory reporting.

Employee Training Requirements:

• All dispensary employees must complete education and state-mandated training.
• Security personnel must follow Ohio’s dispensary safety protocols.
• Staff should be knowledgeable about cannabis products, compliance, and customer service.

Well-trained staff reduce compliance risks and enhance customer experience.

Metrc Compliance & Inventory Tracking

Ohio requires all licensees to use Metrc, the state’s designated seed-to-sale tracking system. Metrc ensures regulatory compliance by monitoring cannabis products from cultivation to final sale, preventing diversion and ensuring product safety. As a dispensary owner, you must integrate your inventory management with Metrc, accurately log all transactions, and stay up to date with reporting requirements. Implementing a strong inventory tracking system that aligns with Metrc’s requirements will help streamline operations and maintain compliance with Ohio’s cannabis laws.

Develop Operational SOPs

Standard Operating Procedures (SOPs) ensure consistency, accountability, and compliance. These documents should cover all aspects of operations, including opening and closing procedures, inventory audits, recordkeeping, incident reporting, and employee responsibilities. SOPs help train staff, support inspections, and establish operational excellence.

Market Your Dispensary & Attract Customers

Marketing cannabis businesses in Ohio is challenging due to advertising restrictions. However, you can still build brand awareness using the right strategies.

Dispensary Marketing Strategies:

• SEO & Local Search Optimization: Optimize your website for searches like “best dispensary in [city]”.
• Social Media Engagement: Platforms like Instagram and Facebook allow dispensaries, but direct advertising is restricted.
• Loyalty & Referral Programs: Offer discounts, membership programs, and referral bonuses.
• Community Events & Sponsorships: Hosting cannabis education events can build trust and brand awareness.

Ohio Cannabis Advertising Laws:

• No ads targeting individuals under 21 years old.
• No false claims about medical benefits.
• No cannabis-related imagery visible from outside the store.

Use content marketing, email campaigns, and influencer partnerships to reach your audience while staying compliant.

Open Your Dispensary

After fulfilling all licensing, compliance, and operational requirements, you’re ready to open your dispensary. Maintain compliance by updating your Metrc reports, renewing your license every two years, training staff regularly, and staying current with Ohio’s evolving cannabis regulations.

FAQs

How to start a dispensary in Ohio?

• To start a recreational cannabis dispensary in Ohio, you’ll need to obtain a license through the Ohio Department of Commerce, meet state eligibility requirements, secure a compliant location that adheres to zoning laws, follow Ohio’s cannabis tracking system, and maintain compliance with all operational regulations and inspections.

Can I convert my provisional medical marijuana license to a dual-use license?

• No, provisional licenses cannot be converted. However, if you had a provisional license on or before December 7, 2023, you may apply for conversion once you obtain your Certificate of Operation.

What happens if my application is incomplete?

• You will be notified of the deficiencies and have ten days to resubmit a complete application.

How will Certificates of Operation be issued?

• Certificates will be issued in batches based on the order of complete applications, prioritizing cultivators, processors, and testing laboratories.

What preparations are needed for the Division meeting before license issuance?

• Submit Standard Operating Procedures and financial responsibility evidence if requested. Key stakeholders must attend the meeting, which may be virtual.

Will the dual license dispensary in Ohio have the same expiration date as the medical marijuana license?

• For cultivators, processors, and labs, yes. For dispensaries, renewals will be based on the medical marijuana license issuance date.

What is a dual-use provisional license?

• It is a placeholder license issued after submitting a complete application, pending fulfillment of all requirements for a Certificate of Operation.

When are recreational dispensaries opening in Ohio?

• Ohio recreational dispensary license holders began serving the public on August 6, 2024, following the state’s legalization of recreational cannabis and the implementation of regulations governing adult-use sales.

In the upcoming weeks and through 2025, we anticipate many new events to unfold that will affect what recreational legalization will look like. By adding yourself to our Ohio Cannabis Mailing List (below), we will keep you updated on how to open a dispensary in Ohio and all relevant OH news that matters, not-so-easy-to-find news, and comments based on Ohio legalization below.

This includes, but is not limited to:

• How much will it cost to open a dispensary in Ohio?
• What are the requirements to get a marijuana business license and open a dispensary in Ohio?
• What special programs will be available?
• And more

Just fill out the information below to get access.