Arizona Cannabis License Solutions

The Cannabis License Experts (or CLE) experienced team will help you to get your Arizona cannabis license faster and with an unmatched success rate. Having to repeat your Arizona Cannabis License application process will set your business back by months and significantly impact your earnings potential. Let us show you how we’ll help you on your path to a Arizona Cannabis License and much more by booking your free consultation today.

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Arizona Cannabis Licensing

Market Potential -Arizona Cannabis License

Arizona cannabis presents a promising medical and recreational market with basic State oversight from the Department of Health. With few MSOs and a new adult use market coming into play, this creates opportunities for new Arizona cannabis licensees. The Arizona Department of Health Services (ADHS) Marijuana Program began in 2010 when Arizona voters passed Proposition 203, an initiative creating the Arizona Medical Marijuana Act (AMMA). The AMMA made Arizona cannabis medical marijuana available for qualified patients with debilitating medical conditions. The program grew by 2020 with 130 registered Arizona cannabis dispensaries across the state. On November 3, 2020, voters passed the Smart and Safe Arizona Act (SASAA) allowing the adult use of marijuana legal for adults 21 years of age or older. After months of irregular data reports, Arizona has released new figures showing the state is on track to sell well over $1 billion in marijuana in 2022. Delivery of adult use marijuana is allowed once the Department adopts rules permitting and regulating delivery. See A.R.S. §§ 36-2850, 36-2854

The Arizona Department of Health Services (ADHS) and Arizona Department of Revenue (ADOR) oversee licensing for the state.

Book a free consultation today to learn more about how Cannabis License Experts can assist you and your team on your path to an Arizona Cannabis License and much more.

Arizona Cannabis License Types Requirements, Timelines, and Selection

Receiving cannabis licensing for Arizona cannabis operations varies from City and Town jurisdictions, however, State licensing is consistent for all applicants. A dual licensee is an entity that holds both a Nonprofit Medical Marijuana Dispensary Registration Certificate and a Marijuana Establishment License may operate a single retail location where the licensee may dispense medical marijuana and sell marijuana adult use products. Before the state opens the application process to general applicants it is allowed for businesses that met specific requirements to apply during an early application window that closed on March 9, 2021. Vermont cannabis also offered social equity based licensing which is anticipated to be awarded during the spring of 2022.

Early Applicant: Entities seeking to operate in a marijuana establishment in a county with fewer than two registered Nonprofit Medical Marijuana Dispensaries or Nonprofit Medical Marijuana Dispensary that are registered and in good standing with the Department were eligible for the Arizona cannabis early application window.

Social Equity: The Social Equity Ownership Program aims to increase the Arizona cannabis license numbers up to 10 % in furtherance of social equity. This is done to promote the ownership and operation of marijuana establishments by individuals from communities disproportionately impacted by the enforcement of previous marijuana laws. Over 1,500 Arizona cannabis applications have been filed for the 26 social equity dispensary licenses that Arizona’s public health agency plans to issue under the state’s voter-approved law legalizing recreational marijuana. The Department of Health Services has said a random selection process to award the social equity licenses will be conducted Spring 2022

General Application License limitations: Upon the completion of licensing for the early application process and the social equity ownership program, the Department of Health is allowed to issue up to one Marijuana Establishment License for every 10 registered pharmacies in the state. The timeline for this is TBD.
Arizona Cannabis License Types

Hear from Our Successful Clients

Some of the World’s Largest Brands have Trusted CLE to Support their Cannabis Journey.

5 Star Google Reviews

Matthew Caton Yield Cannab

Canna License Experts, and their team were retained by our company to help us along the way with a retail canna license. Brian Wolf along with Kalpna Mistry and their team of experts were there the entire way through the process. Thanks again to Brian and Kalpna for all you support from our family at YIELD Cannab Co.

Lin Yan GMLL Pharma

We have contacted a few licensing company before I decided to contact with Canna licensing Experts. So far I think I have made the right choice and I am happy with the work they have done for us. The team answer questions promptly and never leave us alone. Not to mention their charge are reasonable comparing the similar type of consulting company and quality of their job.

Joseph Dow Dow Testing Labs

Brian and Kalpna at Cannabis License Experts were very pleasant, informative, and knowledgeable regarding licensing. They helped us fill out all the forms needed and guided us through the entire process. I am sure that without their guidance our application would still be in process, or have been dismissed because of some missing information.

Arizona cannabis application

Financial Requirements - Arizona Cannabis License

Common for most new applicants as a mandatory component of the Arizona cannabis application is the requirement for a minimum amount of liquid cash on hand. This is to ensure that applicants have the financial wherewithal from the Arizona cannabis licensing process through to the initial 2-5 years of operation. General requirements for Arizona cannabis license applications include bank statements, CPA letters, Letter of Credit, or similar documentation. Additionally, a 2-3 year Pro Forma is also submitted as a component of the formal Business Plan. The initial registration fee for applying for an Arizona Cannabis Cultivation License is $5,000. Of this, $1,000 is refundable in case the application is not successful. The annual registration renewal fee is $1,000; $2,500 to change the location of any Arizona cannabis dispensary or cultivation facility.
Arizona Cannabis License Types
Currently there are two different types of cannabis business licenses in Arizona:
Arizona Cannabis Marijuana Establishment

That authorizes to have a single retail location to sell, a single off site location to cultivate, process and produce and a single off site location to manufacture and package marijuana

Arizona Cannabis Marijuana Testing Facilities

That authorizes the analysis and monitoring of the potency of the product and potential contaminants.

Arizona Cannabis License Types
Total # of Arizona Cannabis Licenses *Total license numbers are not available at this time.
Dispensary: 143
Basic Demographic Information
Resources include the US Census Bureau,, and any additional relevant resources.
Total # of Counties15
Total # of Cities/Towns91 incorporated cities and towns
Population in 2019: 1,680,992


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cannabis arizona business

Business Climate

Overall, the majority of the state has embraced the formal legalization of cannabis for both medical and recreational use. With few notable exceptions, licensing of all Arizona cannabis operations continues to be moving at a reasonable pace. Ranking, which placed Arizona ninth in the nation for tax friendliness for individuals and businesses, was determined primarily per the state's tax burden as it relates to areas including income tax, property tax, and sales tax.

Real Estate & Zoning

The Department does not require an applicant to submit a certificate of occupancy in the initial application, however, applicants must attest to meeting zoning requirements and provide documentation from the local government saying either there are no local zoning requirements or the location meets the requirements. Also note that if an Arizona cannabis applicant obtains a dispensary registration certificate, a copy of a certificate of occupancy or other documentation issued by the local jurisdiction will be necessary when requesting approval to operate the dispensary. In October 2021, the city councils in the Arizona towns Sahuarita and Gilbert proactively banned aspects of any future recreational marijuana legalization laws in Arizona.
Arizona Real Estate Cannabis License

One-Stop Business Solutions Provider

When you partner with CLE, you are able to leverage our proven knowledge and best industry resources to provide you a complete Cannabis Business Solution.

Frequently Asked Questions

Cannabis cultivation is the process of growing cannabis within a regulated environment for the consumption via a medical or adult-use cannabis program. Generally cultivation refers to the agricultural activities associated with the propagation and growing of cannabis. Cannabis processing is when you manufacture finished cannabis products, packaging of dried flowers or manufacture and package cannabis-based products (i.e. extracts, edibles, and topicals). To be able to produce cannabis and cannabis derived products commercially a specific license is required, requirements depend on the state in which you are locating this business.

The fees for a cannabis cultivation license vary greatly depending on the state in which the facility is to be located. Also facility build out costs vary greatly depending on the type of cannabis cultivation facility (indoor, mixed-light green house, outdoor). Depending on the facility type a cultivation facility can range from 2 million to 20 million dollars. 

No, caregivers cannot sell to dispensaries. Caregivers are required to cultivate and distribute directly to patients registered under the caregiver. To sell directly to a dispensary an adult-use or medical facility license must be held. 

Yes, Arizona’s Department of Health Services is allocating 26 Marijuana Establishment Licenses to eligible social equity applicants. Additionally, the state will offer training to create a more equitable program for those who qualify as social equity applicants. To get an understanding of the qualifications for social equity eligibility please visit Arizona’s Department of Health Services website.

Arizona’s regulations require that Early Allocation applicants and Social Equity applicants be licensed ahead of general applicants. Once the state has issued these license types it will open the general application period licensing 1 Marijuana Establishment for every 10 registered pharmacies within the state. To prepare for this application process please book a consultation with the Cannabis License Experts team. 

Don't Know Where To Begin? Get Started Now

Applying for a Arizona Cannabis License in Arizona and unsure where to start?
Now is the time to start planning as well as deciding what Arizona Cannabis licensing path makes the most sense for your business. Cannabis License Experts can help guide you through the Arizona Cannabis licensing process from start to finish both at the state and local municipality level. Not sure where to start? CLE can develop a preliminary business and feasibility plan to help give you an understanding of the business viability within the Arizona cannabis market.
In order to get started, reach out to one of our regulatory experts today to learn more about Cannabis Business Solutions.
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