Legal Blog

The Legal Dose: Typical Cannabis Startup Costs and Annual Operating Expenses By Sector

While the numbers can vary widely within business sectors and across states, it is clear that plant-touching businesses regularly experience much higher startup and operating costs than their ancillary and supportive business sector counterparts. Much of this disparity can be explained by the increased costs associated with licensing (both initial and continuing) and ongoing regulatory compliance for plant-touching businesses throughout the country.

While median startup costs for wholesale cultivators continue to exceed the median startup costs for all other cannabis business sectors, those wholesale cultivators engaged in (or expanding into) full-fledged vertically integrated grower/retailer operations are hit particularly hard as they are forced to absorb the additional increased costs associated with operating ongoing retail locations as well. In some cases, the median operating expenses for vertically integrated medical and recreational retailers can exceed the operating expenses  of a standalone medical/recreational retail location three fold.

 

For any questions on this topic or Cannabis Law, please contact Andrew Robinson at arobinson@offitkurman.com or 301.575.0321

 

ABOUT ANDREW ROBINSON

arobinson@offitkurman.com  |  301.575.0321

Andrew Robinson is a Principal in the Real Estate Law And Transactions group. He focuses on land use cases as well as areas of administrative and construction law. Mr. Robinson has experience representing clients facing homeowner association, landlord-tenant or construction disputes. He has assisted clients in processing subdivision and condominium development as well as in planning and zoning matters. Additionally, clients turn to Mr. Robinson for complex real estate transactions, commercial leasing, and general litigation.

 

 

 

 

ABOUT OFFIT KURMAN

Offit Kurman is one of the fastest-growing, full-service law firms in the mid-Atlantic region. With over 185 attorneys offering a comprehensive range of services in virtually every legal category, the firm is well positioned to meet the needs of dynamic businesses and the people who own and operate them. Our twelve offices serve individual and corporate clients along the I95 corridor in the Virginia, Washington, DC, Maryland, Delaware, Pennsylvania, New Jersey, and New York City regions. At Offit Kurman, we are our clients’ most trusted legal advisors, professionals who help maximize and protect business value and personal wealth. In every interaction, we consistently maintain our clients’ confidence by remaining focused on furthering their objectives and achieving their goals in an efficient manner. Trust, knowledge, confidence—in a partner, that’s perfect.

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