Cannabis Dispensary Tech: Popular Cannabis Software Solutions

how to open a dispensary

If you’re planning to enter the cannabis industry, here’s something you’ll need to focus on: Researching and implementing the best cannabis software solutions possible. Cutting-edge point-of-sale (POS) and register solutions are becoming a more common sight in the retail world, but they aren’t an optional upgrade for marijuana dispensaries. For dispensaries, this technology is absolutely a vital piece of equipment—as essential as your physical storefront and the products you fill it with.

If terms like “METRC” and “seed to sale” are new to you, today’s post will help you get oriented. A survey of some of the most popular and best cannabis software solutions, it’s designed to provide you with options, ideas, and a solid grounding in the implementation of these essential pieces of the cannabis industry puzzle.

 

How to Open a Dispensary: Tracking From Seed to Sale

These days, it’s rare—but not unheard of—to encounter an old-fashioned cash register in a café or boutique. In the cannabis world, which requires stringent tracking and tracing of products at every single touchpoint, that doesn’t fly. It’s functionally and legally mandatory to track sales accurately and closely.

Because the cannabis industry in the United States is still very much a state-by-state affair, there are a number of competing seed-to-sale and POS solutions. Here’s an introduction to a few of the most prominent options.

METRC: In the world of seed-to-sale tracking and compliance, METRC is an undisputed giant. METRC, in use by no fewer than 15 states—including California, the world’s largest legal cannabis market, is short for “Marijuana Enforcement Tracking Reporting Compliance.” As such, METRC isn’t a POS system but an overarching end-to-end tracking solution that in turn interfaces with various POS platforms.

This raises an important point: Whichever POS you end up using, it will have to integrate seamlessly with your state-mandated tracking plan. Given its ubiquity, there’s a fair chance it’s METRC.

Flowhub: With a focus on POS, inventory management, ID verification, and dispensary analytics, Flowhub is another heavy hitter in the retail cannabis world. Though the company only began processing retail sales in 2016, it has risen to prominence quickly. By the end of 2021, high-profile partnerships with Shawn “Jay-Z” Carter and others had brought the company’s valuation to over $200 million. If you’re shopping for a cannabis software solution, Flowhub will probably land among your considerations.

BioTrack: With an enviable position as the only vertical seed-to-sale cannabis software that’s fully integrated with METRC in every state that employs the platform, BioTrack is another comprehensive option, not only for retailers but for cultivators, processors, and other operators. If you’re operating in a vertically integrated environment, BioTrack is one of the strongest contenders in the field.

Leaf Logix: Another comprehensive seed-to-sale solution, Leaf Logix self-describes itself as the industry’s only native platform that services all cannabis business types. Able to serve cultivators, processors, distributors, and marijuana dispensaries with equal depth, Leaf Logix’s platform also provides accounting and financial support. Take note, as this is a potentially important factor given the challenges many cannabis businesses face when it comes to accessing basic financial services.

MJ Freeway: Like most of the platforms we’ve named here, MJ Freeway prides itself on providing legally-compliant software solutions for several types of cannabis businesses. In the case of MJ Freeway, this includes delivery—an important facet of the industry that’s only grown since the advent of COVID-19. With the capability to set schedules and draft delivery routes, MJ Freeway offers a powerful partner for cannabis businesses that are on the go.

How to Open a Dispensary: ECommerce Solutions

While POS solutions for in-person transactions are an essential part of the equation, there’s also the large (and growing) segment of e-commerce sales to consider. The following companies are among the leaders in this vital segment of the cannabis universe.

I Heart Jane: Described as a “fully integrated, turnkey” solution for e-commerce, I Heart Jane offers a flexible and intuitive platform for customers and retailers alike. As recent trends illustrate, the ability to support touchless or remote transactions is seen as a major upside for retailers looking to acquire and retain customers.

Dutchie: With a platform functionally similar to I Heart Jane’s, this Oregon-based software company offers easily scalable solutions designed to work within single-location, multi-state, or vertically integrated environments. Regardless of the setting, Dutchie’s interface remains sleek, intuitive, and flexible.

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How to Open a Dispensary: Loyalty Counts

Earning (and retaining) customer loyalty is a big deal in retail, and nowhere more so than in the realm of marijuana dispensaries. Here are a couple of software platforms designed to help you manage and leverage this hugely important factor in setting up your business for success.

springbig: With a stated goal of helping cannabis dispensaries and brands stand out and gain traction, this provider of marketing software focuses on increasing retention, boosting sales, and building loyalty among cannabis consumers. This is no easy feat in a fast-moving and highly fluid industry, but springbig delivers. The springbig platform includes customer relationship management (CRM) software designed solely for the cannabis industry.

TokeIn: Another cannabis-specific CRM system, TokeIn offers retailers flexible tools such as customizable loyalty and rewards programs. Relying on lightweight and highly effective SMS marketing, among other tools, the platform allows clients to easily track and manage this vital point of contact with their customers.

How to Open a Dispensary: Moving Beyond Cash

For any customer-facing enterprise, this is where the rubber hits the road: Payment. While marijuana dispensaries have historically had few (if any) options beyond cash, that’s changing—slowly. Here are a couple of the leading options.

Cannapay: Given how underserved the cannabis industry remains when it comes to financial services, Cannapay’s breadth of services come as very welcome news. Offering everything from standard credit card payment options, branded reloadable cards and even armored car pickup for the cash payments still prevalent in the industry, this Washington-based company functions as something of a one-stop shop for cannabis retailers.

CanPay: This platform allows consumers to use their debit cards securely to make purchases. While late and overdraft fees have earned some former customers’ ire, CanPay still stands as one of the very few practical alternatives to cash transactions in the industry.

How to Open a Dispensary: In Conclusion

With the number and scope of software platforms for marijuana dispensaries only growing, we hope this survey of some of the leading options provides some clarity.

If you’re preparing to enter the cannabis industry, we’d like to offer something more: Expert guidance and counsel. Since 2009, Bridge West has helped more than 400 current cannabis business license holders all across the United States navigate the daunting array of rules, regulations, and pitfalls when applying for and securing a license. Reach out; we’d love to talk.

Can I Launch a Cannabis Business in NY with a Criminal Record?

Can you work at a dispensary with a criminal record

We’ve written before about the rollout of New York marijuana legalization, and how the state is working to encourage participation in the cannabis industry by populations who have been unduly affected by the War on Drugs. Herein lies a paradox. Because some would-be entrepreneurs have had personal, negative interactions with the justice system, many of them wonder: Can you work at a dispensary with a criminal record?

In today’s post, we’ll explore this question, as well as provide background on New York marijuana legalization as a whole. If you’re looking to enter the New York cannabis market, this is important information you’ll want to have at the ready.

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How to Open a Dispensary: Equity in New York Cannabis

The Empire State’s Marihuana Regulation & Taxation Act (MRTA) is notable for putting social equity front and center. With a mandate to promote racial, ethnic, and gender diversity when issuing cannabis licenses, advocates hope the program will have a positive, lasting, and galvanizing effect for historically marginalized license applicants.

To that end, the state stipulates that preference will be given to social and economic equity applicants, with a goal of 50% of licenses going to such applicants. These “Social and Economic Equity” applicants will be entitled to such benefits as fee waivers or reductions, access to low-interest or interest-free loans, and no-cost counseling services such as small business coaching and financial planning.

What’s more, these special dispensations are designed to prevent they’re being used as a “back door” for non-qualifying applications. The law prohibits the sale or transfer of a social equity license for three years after initial licensure unless the license is sold or transferred to another qualified social equity licensee (and the transfer is approved by the CCB).

We should note that, finally, the CCB has demonstrated an interest in maintaining geographic diversity among license holders.

Can a Felon Own a Dispensary? Crucial Questions

What bearing does a prior felony conviction have on participation in or ownership of a cannabis business in New York? While many New Yorkers will enjoy automatic expungement of some types of cannabis-related convictions, the implications on licensing are somewhat different. At present, a cannabis-related conviction automatically disbars the person from working at a medical dispensary.

However, the wording of the MRTA allows for some discretion on the part of the Cannabis Control Board. While mandating that cannabis businesses can’t employ those convicted in the last three years of a felony related to the running of a business, the language notes that “a felony conviction for the sale or possession of drugs, narcotics, or controlled substances is not substantially related” in this regard. In other words, the Board is signaling that—within limits—it’s open to changing the paradigm about prior convictions under a legal rubric acknowledged as discriminatory.

When it comes to ownership of a cannabis business, the Board requires full disclosure of any prior cannabis-related convictions. Again, this doesn’t equal automatic, permanent disqualification. Rather, the implication is that the Board will place any prior convictions in context.

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New York Marijuana Legalization: In Conclusion  

While the wording of the state’s licensing requirements may present something of a gray area, there’s no reason to leave yourself in the dark.

If you’re committed to securing a NY cannabis license, we’re here to help. Since 2009, Bridge West has helped more than 400 license holders all across the United States navigate the daunting array of rules, regulations, and pitfalls around applying for and securing a cannabis license. Reach out; we’d love to talk.

NY Cannabis Update: Who’s Who on the New York Cannabis Control Board?

new york cannabis

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Even given the dynamic and fast-moving nature of the cannabis industry, the upcoming launch of New York’s adult-use cannabis industry is noteworthy. With some sources projecting that New York cannabis sales could reach $3.7 billion by 2025, a large number of investors and entrepreneurs are lining up to enter the Empire State’s market.

If you’re interested in understanding New York cannabis licensing requirements, we suggest you get up to speed with our recent blog on the topic. In today’s post, we’re going to shift our focus to the five members of the New York Cannabis Control Board (CCB), the office charged—in concert with the state’s Office of Cannabis Management—with creating the regulatory framework for the New York cannabis industry.

A diverse group that includes veterans from the worlds of finance, labor unions, state politics, and beyond, the members of the CCB are some of the most crucial figures in New York cannabis regulation. Here’s an inside look at their backgrounds and their goals for the New York Cannabis Control Board.

New York Cannabis Control Board: Meet the Members

While the state has faced criticism for the slow rollout of the CCB, Governor Kathy Hochul has signaled her investment in “jumpstarting” the process. After the Governor announced the final two nominees to the CCB in late September, the new CCB held its first meeting in early October 2021. Here are the current members of the CCB and their most notable experience:

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Tremaine Wright, Chairwoman

As a former Brooklyn Assemblywoman and former chair of the Black, Puerto Rican, Hispanic and Asian Legislative Caucus, Tremaine Wright brings a wealth of knowledge around the issues facing communities of color. As current director of the Office of Financial Inclusion and Empowerment, Wright is expected to help ensure that cannabis businesses have adequate access to banking and other financial services.

Jen Metzger

Like Chairwoman Wright, Former State Senator Metzger brings strong legislative experience to the CCB. First active in local government in the Town of Rosedale and later elected as a New York State Senator for a term, Metzger worked to help fight predatory utility rates and practices and promote greater access to broadband in underserved areas.

Adam Perry

A partner at the Buffalo law office of Hodgson Russ, Adam Perry specializes in employment-related litigation and helps manage the firm’s cannabis and hemp-related practice. According to Speaker of the New York State Assembly speaker, Carl Heastie: “Adam W. Perry is deeply invested in New York’s communities, and will bring that dedication to his new role and be an asset to the Cannabis Control Board.”

Reuben R. McDaniel, III

As the President and CEO of DASNY, Reuben McDaniel is an accomplished executive known as a team player. Prior to his appointment, McDaniel was an investment banker with more than three decades of experience in public and corporate finance.

Jessica Garcia

A rising figure in the labor union world, Jessica Garcia serves as Assistant to the President of a national union representing workers from across the food supply chain, retail, and healthcare. What’s more, Garcia brings strong experience as an organizer and immigrant policy advocate. As such, she serves on several prominent state and local boards.

New York Cannabis Control Board: The Groundwork for Success

Learning about the members of the CCB is a valuable facet of the landscape in the New York cannabis industry, but understanding how the board members’ interests and backgrounds may influence the sector could be a business differentiator. That’s why partnering with an experienced guide such as Bridge West can dramatically increase your chances of success.

Drawing on our deep knowledge of New York’s regulatory and business environment, we guide prospective applicants through the maze of rules and regulations involved in securing a cannabis license there.

Ready to talk? Reach out anytime.

How to Win a Cannabis License in New Jersey as a Diversely Owned Business

Cannabis License

As New Jersey gears up to launch its much-anticipated legal cannabis industry, the Garden State is sending out a clear signal: The state intends to spur diversity in cannabis, and prioritization will be given to those cannabis business license applicants who represent diversely owned businesses. If you’re a woman, a member of an ethnic minority, or a disabled veteran, this presents an opportunity for you to secure a license in what will be a highly competitive arena.

We’ve talked about the cannabis licensing requirements in New Jersey before (we suggest you revisit that article to familiarize yourself with the landscape first). Today, we’ll talk about the ways in which the state plans to incentivize these diversely owned businesses and share some of the ways you can gain a competitive advantage.

Cannabis Licensing Requirements in New Jersey: Identifying Diversely Owned Businesses

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The desire to support diversity in cannabis is hardly limited to New Jersey. From coast to coast, many states have dedicated resources and special programs with the goal of bringing underrepresented populations into the legal cannabis industry. But New Jersey’s program—enshrined in the recently-adopted adult-use law—is robust and potentially far-reaching. The state’s Cannabis Regulatory Commission (CRC) earmarked nearly one-third of all cannabis business licenses to diversely owned businesses. At present, 15% of licenses will be awarded to businesses certified by the State of New Jersey as Minority-Owned Businesses, and an additional 15% will go to those with designations as Women-Owned Businesses and Veteran Owned Businesses.

On a technical note, New Jersey defines “diversely owned businesses” as those in which at least 51% of the ownership interest is held by persons who are minorities, women, disabled veterans, or any combination thereof; and the management and daily business operations are controlled by one or more of the minorities who own it. The State has a formal process to apply for these certifications.

Impactful though this stands to be, it’s not the end of the story. In addition to the priority given to minority applicants, the CRC will prioritize applicants with ties to “impact zones”—those municipalities negatively impacted by unemployment, poverty, or past cannabis enforcement activity.

In addition, the CRC—addressing concerns that many current cannabis license holders have out-of-state ownership—will give priority to longtime state residents. The Commission defines these as those people who have resided in New Jersey for at least five years and who hold at least a 5% stake in any entity seeking a cannabis license in New Jersey.

Cannabis Licensing Requirements in New Jersey: Get a Leg Up

As we stated earlier, New Jersey’s focus on diversity in cannabis presents a special opportunity for minorities, women, and disabled veterans. But these attributes on their own aren’t enough to guarantee success when it comes to crafting a winning cannabis business license application. Successful applications will need to demonstrate:

    • Direct experience in the cannabis industry
    • A detailed business plan that includes all pertinent, cannabis-specific aspects—including compliance software and reporting tools
    • Demonstration of financial and managerial competence
    • Environmental-impact plans and sanitation procedures
    • Safety and security procedures, including those for cybersecurity and diversion prevention
    • An emergency management plan, as well as procedures to report adverse events

Whether you represent a diversely owned business or not, Bridge West can dramatically increase your chances of application success. Over the past dozen years, we’ve helped over 400 applicants win cannabis business licenses all across the United States. We guide entrepreneurs through the many rules and regulations involved in securing a cannabis license, and the relationship doesn’t end there. With access to funders, mentors, and other key stakeholders, Bridge West is the partner you need to maximize your chances of success in this fast-moving and competitive industry.

Ready to talk? Reach out anytime.

How to Get Licensed in South Dakota’s Medical Cannabis Market

South Dakota

In November of 2020, South Dakota made history as the first state to legalize both medical and adult-use cannabis in the same year. And while the adult-use part of the equation is currently in legal limbo—more on that in a moment—the state is moving ahead on the medical-use front.

If you’re interested in entering the cannabis industry in the state of South Dakota, it’s high time to dive into the cannabis licensing requirements. In today’s post, we’ll share what we know about the legal status of cannabis in South Dakota. We’ll also introduce a timeline for the South Dakota medical cannabis licensing requirements.

Cannabis Licensing Requirements in South Dakota: The Adult-Use Question

Although South Dakotans voted to approve adult-use cannabis by a 54%-to-46% margin, Governor Kristi Noem has pushed back, instructing a state official to challenge the measure in court on technical grounds. There’s currently no word on when the South Dakota Supreme Court will issue a ruling; stay tuned on that front. Incidentally, Noem also attempted, unsuccessfully, to thwart the state’s medical-cannabis program. As of this writing, the state is slated to launch a patient registry program in November of 2021.

Medical Cannabis Licensing Requirement: What We Know

With the state currently formulating its guidelines, many questions remain as to how South Dakota will manage the cannabis business licensing process. But with the State Legislature tasked with providing a legal framework for retail medical sales by April 1, 2022, the clock is ticking.

At present, SDCL 34-20G establishes the following cannabis business types:

  • Cultivator
  • Manufacturer
  • Dispensary
  • Testing facility

These cannabis businesses are referred to collectively as “establishments.” And while the exact cannabis licensing requirements in South Dakota are still a work in progress, the Department of Health will issue those details on or before October 29, 2021.

If you’re interested in applying for a cannabis license in South Dakota, that means it’s Go Time. Even if the exact licensing requirements are in flux, now’s the time to be formulating the business and operations plans you’ll need to have when it’s time to apply. Let’s drill a little deeper into both:

Business Plan: In most states, having a business plan is required for every type of cannabis license application. Moreover, a well-crafted business plan is a vital roadmap for you and your team. Nailing this document is your best opportunity to demonstrate your organizational and entrepreneurial knowledge, your grasp of the commercial and regulatory playing field, and the ways your business will positively impact the community you serve. And having a compelling and clear-eyed business plan is a major factor in your ability to attract investors, partners, and other key players.

Operations Plan: If your business plan is your strategic overview, your operations plan is your tactical roadmap. It’s where you’ll spell out all the details relating to safety, compliance, and the day-to-day operations of your establishment. Think of it as an “operator’s manual” for running a successful, compliant, and profitable cannabis business.

Cannabis Licensing Requirements in South Dakota: Wrapping Up

If you’re serious about entering the South Dakota cannabis industry, we’d like to help. As a partnership of highly skilled and seasoned cannabis industry consultants and guides, Bridge West is ready to help new and emerging cannabis companies find financial and banking solutions, connect with potential stakeholders and chart a course for success in this exciting new landscape. Feel free to reach out to schedule a consultation at any time.

Cannabis Licensing Requirements in Ohio: State-Specific Regulations and Laws

Ohio cannabis licensing requirements

As of Summer 2021, Ohio is preparing to open the gates to a truly exciting opportunity in the state’s booming cannabis industry: As part of the Ohio’s cannabis licensing requirement, a call for applications for some 73 medical dispensary licenses, to join the Buckeye State’s current total of 60 (only 57 of which are provisionally licensed as of this moment). If all these licenses are issued, it will more than double the state’s total of dispensaries, up to 130. But there’s more to cannabis licensing requirements in Ohio.

Competition for these licenses is expected to be fierce, and we urge anyone interested in entering the cannabis industry there to familiarize themselves with the current license application process and specifics for medical cannabis dispensaries. If you’re looking to enter the Ohio cannabis industry, we want to help. We’re a team of seasoned cannabis industry veterans, with decades of combined experience and a proven approach to cannabis business licensing. With that in mind, here’s an overview of cannabis licensing requirements in Ohio.

Cannabis Licensing Requirements in Ohio: The Dispensary Application Process

Following the lead of other states such as Connecticut, Ohio is instituting a lottery process with this round of dispensary licenses. For applicants, this means that—once they’ve demonstrated their suitability on the strength of their application—they’ll be entered into a lottery within their respective districts. The goal is to provide a more transparent, streamlined and fair process. And it means that in addition to paying extra-careful attention to all the details in their application, potential licensees will need to have a firm grasp on the state’s current and proposed geographic distribution of dispensaries.

All told, Ohio has 31 medical marijuana districts, with the Ohio Board of Pharmacy dictating how many dispensary slots will be made available per district. The Board’s calculations will depend upon such factors as: 

  • Total population of the state
  • The number of patients seeking access to medical marijuana
  • The geographic distribution of current dispensary sites

The goal of the forthcoming request for applicants is to increase the number of dispensaries in several districts. For instance, the number of Hamilton Country dispensaries will rise from 3 to 11; Franklin County dispensaries going from 6 to 15, and Cuyahoga dispensaries going from 5 to 12. 

While potential licensees may submit applications in any number of districts, no more than 66% of licenses in any one district will be awarded to a single applicant. And regardless of which district (or districts) you plan to apply for a license in, it’s important to understand that such applications are scored on the basis and strength of their business plan, their operations plan, and their patient care plan. What follows is by necessity an overview; we urge you to familiarize yourself with the specifics in the state’s Dispensary Application Instructions.

  • Business Plan: In addition to being a requirement for a dispensary license application, a well-crafted business plan is a vital roadmap for you and your team. From the licensing board’s point of view, it’s your single best opportunity to demonstrate your organizational and entrepreneurial knowledge, your grasp of the commercial and regulatory playing field, and the ways your business will positively impact the community you serve. Over and above this, having an airtight and realistic cannabis business plan is a major factor in your ability to attract investors, partners, and other key players. 
  • Operations Plan: How will you ensure that your facility is in compliance with the state’s security, diversion, public safety, and other requirements? All this information and more should be included in your operations plan. Think of it as your guidebook for all your daily, weekly, monthly, and yearly operations, an “operators manual” for running a successful, compliant, and profitable cannabis business.
  • Patient Plan: Ohio’s requirement for a patient plan includes three sections: Staff education and training; patient care and education; and patient care facilities. The state expects applicants to describe the educational content given to employees during their training, as well as the duration, source, and frequency with which they’re updated. What’s more, the state requires specific information on the nature, layout, and size of all areas devoted to patient care. As with all aspects of the application, it’s a highly granular list of requirements demanding close attention to detail and planning.

Cannabis Licensing Requirements in Ohio: The Regulatory Framework

Of course, dispensaries aren’t the only types of cannabis business license opportunities. Ohio’s medical cannabis program, administered through the Ohio Medical Marijuana Control Program (OMMCP), currently allows for four types of cannabis business license:

  • Cultivation: In Ohio, cannabis cultivation is licensed and regulated by the Department of Commerce (ODC). Its guidelines specify two types of licenses—Level I and Level II—and it’s important to note that at present, applicants may only apply for or hold one of the two types:
  • A Level I Cultivator License permits a cultivator to operate up to 25,000 square footage of space designated as a cannabis cultivation area. The ODC may issue up to 12 Level I Cultivator Licenses. The application fee is twenty thousand dollars ($20,000). In addition, it’s an Ohio cannabis licensing requirement that licensees must establish and maintain an escrow account in an in-state chartered financial institution in the amount of at least $750,000.
  • A Level II Cultivator License permits a cultivator to operate up to 3,000 square footage of space designated as a cannabis cultivation area. As with Level I licenses, the ODC may issue up to 12 Level II Cultivator Licenses. The application fee is $2,000; as with Level I licenses, licensees must establish and maintain an escrow account in an in-state chartered financial institution, but in this case, the minimum amount is $75,000.
  • Processing: Also regulated by the Department of Commerce, these licenses regulate processors of medical marijuana. These businesses can take several forms, including: Standalone facilities; vertically integrated facilities; and plant-only processors which distribute plant material directly to licensed dispensaries.

Regardless of the type, license holders are allowed to obtain medical marijuana from one or more licensed cultivators and process cannabis into a form as described in the state’s laws and regulations, as well as sell and/or deliver processed cannabis to one or more licensed retail dispensaries. The ODC may issue up to 40 processor licenses; the application fee for such licenses is $10,000.

  • Testing: The Department of Commerce regulates these licenses, which are granted to both universities and privately operated laboratories. There is no limit to the number of testing lab licenses that may be awarded by the Department.
  • Medical Dispensaries: In Ohio, medical cannabis dispensaries are regulated by the Board of Pharmacy (BOP). The number of dispensary licenses awarded is calculated based on population density, geographic area, and other factors. For instance, a dispensary may not be less than 500 feet from a school, church, public library, public playground, or public park. What’s more, local municipalities may impose their own zoning laws; you can find a complete list of guidelines and requirements in the state’s laws and regulations.

The application fee for a dispensary license is $5,000. What’s more, applicants must provide proof they have adequate liquid assets to cover all expenses and costs of the first year, currently defined by the state as a minimum of $250,000.

In Conclusion

If you’re serious about entering the Ohio cannabis industry, we’d like to help. As a partnership of highly skilled and seasoned cannabis industry consultants and guides, Bridge West is ready to help new and emerging cannabis companies find financial and banking solutions, connect with potential stakeholders, understand the Ohio cannabis licensing requirement, and chart a course for success in this exciting—but challenging—new landscape. Feel free to reach out to us anytime to schedule a consultation.