Save $5 Today Use Code: Medcardnow

How to Open a Dispensary in Arizona

Opening a dispensary is a huge task that requires a lot of effort. However, if you’re a resident of Arizona then this article will help you in opening your dispensary in Arizona.

Establish Your Business

Begin by implementing your business as a legal entity in Arizona. Medical marijuana dispensaries are usually incorporated as non-profit. Recreational dispensaries incorporate as profit or non-profit.

Generally, non-profits have more regulations, but they also offer tax benefits. On the other hand, recreational dispensaries pay a 16% tax.

You can register under the following fields.

  • Individual
  • Corporation
  • Partnership
  • Limited liability company
  • Association or cooperative
  • Joint venture

Ensure to register with your state and federal tax authorities.

Start Planning

Planning is a good step because it paves way for getting funding and applying for a license.

You’ll have to submit the following documents for state licensing application:

  1. Your company’s by-laws
  • Policies and procedures for inventory control, patient recordkeeping, security, and patient education and support
  • A business plan consisting of:
  • Projected costs, both before and after opening the dispensary
  • Revenue forecast
  • The site and floor plans
  • Job descriptions

Get Funding

Federal law denies cannabis businesses access to many mainstream banks and investment firms. However, several investment firms specialize in raising funding for cannabis firms.

You can also consider private investment from family and friends.

Find a Home

You must be certain about getting a license before investing in a dispensary.

You should be an owner of a qualified space before you submit your license application. Also, your dispensary must comply with local zoning laws and state restrictions.

Arizona grants licenses based on

  • The nearness of the proposed location is to other dispensaries
  • How many registered patients are within 10 miles of the location

Get Your Licenses

There are only a few medical marijuana dispensary licenses in Arizona.

The state prioritizes owners of medical marijuana dispensaries who want to switch to recreational or a dual medical/recreational model.

If the state decides to issue more medical marijuana dispensary licenses, you’ll have to apply with the following.

  • Data of your top directors and investors
  • Proof that you own the intended dispensary property

Registering a new dispensary costs $5,000.

Apart from your business license, you’ll also need to register all your employees. This usually costs around $500 per employee.

Set Up Shop

After getting your licenses, real estate, and ingenious plans, now you need to set up your dispensary. Dispensaries consist of the following

  • Employees (if you haven’t lined them up already)
  • A well-designed interior
  • Products
  • A professionally designed and optimized tech and security system


After setting up your dispensary, it’s time to become fully functional.

Arizona dispensary owners don’t have any limits on marketing and advertising. According to Prop 207, you must put your dispensary’s name and license number in all your ads. You should also avoid designs and messaging that can attract minors.

Can you buy a cannabis dispensary in Arizona?

Buying a cannabis dispensary in Arizona is expensive. You can search for a marijuana dispensaries for sale in Arizona to get a list of top dispensaries for sale. Most cannabis dispensaries for sale in Arizona will provide details about the average revenues, licenses, size, number of employees, and more. Also, you must meet specific requirements set by the owner of the dispensary before you can buy.