By Luke Sholl

The cannabis industry is booming. New cannabis companies and retail locations are opening at a staggering rate in many places. It may seem like an easy industry to crack into, but the reality is very different. In short: it takes a whole lot to obtain a licence to sell cannabis, and we’re not just referring to the very high fees involved. Below, we discuss the main factors one should consider if thinking about applying for a commercial cannabis licence in the US, Canada, and Europe.

FACTORS TO CONSIDER IF YOU WANT TO GET INTO THE CANNA-BUSINESS

KNOW YOUR LOCAL LAWS AND REGULATIONS

No matter if you want to get a licence to grow commercially or open a dispensary, the first port of call is to consider legality. Given the “youth” of the legal cannabis industry, the barrier to entry is actually much higher, and the requirements more steep. As such, do your due diligence regarding local laws and regulations. Legal markets vary widely, potentially making or breaking an individual’s success in this endeavour.

Background checks are often required, not just for the owner of a dispensary, for example, but for all employees and investors as well. In some places, such as in Canada, growing medical cannabis commercially will require that everyone in charge has valid security clearance. So, if you have a criminal background, your dreams of hitting it big as a licenced medical grower may be crushed before they can even take off.

Then there’s the complex grey areas to navigate; “tolerated” or “decriminalised” doesn’t mean that marijuana is legal. And if it isn’t legal, or if your local laws are not clear and your city hasn’t passed anything that explicitly allows the cultivation of recreational cannabis, this means a dispensary could be shut down at any given moment by the government. You don’t want to risk investing in something that is still illegal in the eyes of the law.

Not only should you make yourself aware of the current laws, but prospective ones too. This young industry has a lot of proposed legislation soon to be enacted, so major changes in regulations are likely to follow suit. Getting ahead of the game by researching upcoming developments will only make the process smoother.

Likewise, be aware that some places, like the US for example, have conflicting cannabis laws that differ depending on state versus federal purview. On the federal level, cannabis is still illegal and a Schedule I drug in the US; in individual states, legal cannabis is thriving.

So first and foremost, make sure to prioritise research. Even better: consult with an experienced lawyer that can advise you.

TIME TO MAKE A BUSINESS PLAN

On paper, there’s nothing more appealing than the prospect of turning a hobby into a business. But with several cannabis niches becoming ultra-saturated (such as the CBD market), a lot of people getting into the field are just as quickly floundering—not just because of the steep requirements and legal uncertainties, but due to a lack of professional experience and know-how.

If you want to be successful, you need to be professional about it. A solid business plan is a great first step in that direction. A comprehensive plan will help in several ways. To start, it shows that you’re serious about your business and that you understand the complexity of what you’re getting into. Moreover, it acts as a personal roadmap to keep things organised and somewhat under control, especially in the early stages. Lastly, a business plan is key when looking to get funding from investors. They want to see that they will eventually get a return on their investment.

TIME TO MAKE A BUSINESS PLAN

YOU NEED STARTING CAPITAL

It’s a fact of life; you need capital to start a business. Your business plan should state how you will access this capital, and for what it will be used. This can be one of the biggest challenges as you will not only require funding in the range of $200,000–250,000 as a bare minimum, but are unlikely to secure a loan from a bank. You can thank the legal grey areas for this. Therefore, you need to secure funding via other methods, e.g. investors or private capital.

Your business plan should also list the prospective running costs for your marijuana business. This will include yearly licencing fees, rental costs, employee salaries, transportation costs, and any other expenses.

FIND A SUITABLE PROPERTY

Not only are there steep licencing requirements for fledgling canna-business owners, but also operational requirements. To operate as a dispensary in California, you can’t simply rent a space wherever you’d like. There are strict rules about how far cannabis retail locations must be from schools, churches, and residential zones.

Likewise, a high level of security needs to be established for any type of property where cannabis is being stored. For instance, there are some requirements that dictate the walls must be a certain thickness, along with other security specifics that add to the overall cost and energy involved with operating a business. The Canadian commercial cultivation application requires detailed descriptions of the site’s floor plans and security measures in order to be accepted.

APPLICATION AND LICENCING FEES

Aside from the fees of starting and running your business, there are the actual licencing costs you will need to take care of outright. This, in addition to the legal hurdles involved, is often enough to deter many would-be shop owners. In some places, the application fee to get your licence can exceed tens of thousands of dollars. Add to this yearly renewal fees to keep your licence, and it’s clear how quickly the money can be sucked out of your wallet.

OBTAINING CANNABIS CULTIVATION LICENCES IN AMERICA, CANADA, AND EUROPE

The above represents a snapshot of the different factors you’ll need to consider on a more or less global basis. Now, we’ll shed some light on the specifics of becoming licenced in America, Canada, and Europe, to help give you an idea of what things look like in your neck of the woods.

UNITED STATES

In the United States, laws and regulations for commercial cultivation vary by state, by county, and even by city. So before you start drawing up plans for opening a dispensary or some large-scale medical cannabis operation, make sure you know the laws and rules that apply to you.

The fees for licences will also vary greatly. For example, in Washington state, application fees for a licence are only $250, with annual licence fees from $1,480. This is a bargain compared to most other states. In Illinois, the application fee is $25,000, with an annual cultivation licence that costs $100,000. Some states, such as California, Colorado, and Oregon, have tiered annual application and licence fees that depend on the size and type of grow; i.e. if you plan to grow indoors or outdoors, the number of plants you’ll grow, and so forth. On the low end, this can set you back a couple thousand dollars, but may go up to the tens or hundreds of thousands—just for getting and keeping your cultivation licence.

UNITED STATES

CANADA

Canada officially passed Bill C-45 (Cannabis Act) in October 2018, which makes it the only G7 country that allows the cultivation and sale of recreational cannabis. This means that cannabis is legal on a federal level in Canada. All aspects of selling and distributing cannabis, however, are under individual provincial jurisdiction, where each has different rules for licencing retailers. The Cannabis Legalization and Regulation Branch (CLRB) is responsible for overseeing the licencing process.

Where and how you obtain your licence in Canada depends on what province you plan to operate in. For example, in British Columbia, you would need to obtain a private shop licence from the British Columbia Liquor and Cannabis Regulation Branch (LCRB) following a detailed application process. In Manitoba, the Manitoba Liquor and Gaming Authority (LGA) issues licences for the private retail market, but individual communities can veto the opening of retail locations in their area.

In Ontario, you can get a dispensary licence following a detailed application process from the Ontario Cannabis Retail Corporation (OCRC). In Alberta, you submit your application to the Alberta Gaming and Liquor Commission (AGLC).

EUROPE

Compared to Canada and those American states where cannabis is legal, all EU member states treat possession of cannabis for personal use as an offence. However, several countries, for example Spain, Italy, Czech Republic, and Belgium, have now started to remove prison time as a penalty for minor offences.

No government in Europe outright supports legalization of cannabis for recreational use; current legal European cannabis markets exist firmly within a medical context. Even the dispensaries and coffeeshops in the Netherlands are merely tolerated, provided they follow strict criteria by the public prosecutor. This is similar to the cannabis clubs in Spain, which are technically private clubs, not commercial retail spaces.

Due to the legal status of cannabis in European nations, it is at this point not yet possible to apply for a licence to sell recreational cannabis, although baby steps are being made.

Germany, for example, intends to award the country’s first domestic licences for medical cannabis cultivation in 2019, although the process has so far been plagued by setbacks and delays. Germany recently restarted the application process, where the deadline has since passed. Those companies that are eventually selected to be the first to legally grow medical cannabis in Germany will have to follow stringent security requirements, and will need to adhere to the highest pharmaceutical production standards.

CANNA-BUSINESS LICENCING: ARE YOU IN IT FOR THE LONG-HAUL?

If you live in Canada or one of the legal states in America, you can apply for a licence to sell or grow cannabis. That is, if you’re willing to invest a tremendous amount of money (and energy and time) into a very competitive industry where success is anything but certain. Here in Europe, things are moving slower for aspiring commercial growers. Cannabis is still illegal in the eyes of the law, despite various decriminalisation efforts made here and there. But if the current legal markets teach us anything, it’s just how quickly things can change.

Cookies settings

We are requesting your permission to use your data for the reasons stated below:

Functional cookies

Functional cookies help our website to function optimally and allow us to personalise certain features.

Preference cookies

Preference cookies allow us to remember information that influences the way our website looks, including your preferred language based on your region.

Analytical cookies

Analytical cookies give us insights into website traffic and customer behaviour, including how many people visit our site, how long they browse for, and which parts of our site they visit.

What are cookies?

Cookies are small pieces of data from a particular website that get stored on a user’s computer while they’re surfing the internet. Cookies have several different functions. Some of them track browser activity that enables businesses to deliver targeted advertisements. Other cookies serve to remember user login details to different websites to make jumping on social media, or other sites, a more fluid process. Because each cookie has its own unique ID, these pieces of data allow website owners to measure the unique traffic coming into their site.

Why do we use cookies?

Cookies come in handy when you visit our website. They ensure you stay logged in, that you can shop safely, and that the items you add to your cart stay there before you make a purchase. But cookies also help us. The data they provide allow us to improve our website and enable us to present you with targeted advertisements that are compatible with your interests.

What kind of cookies do we use?

Functional cookies

Functional cookies help our website to function optimally and allow us to personalise certain features.

Preference cookies

Preference cookies allow us to remember information that influences the way our website looks, including your preferred language based on your region.

Analytical cookies

Analytical cookies give us insights into website traffic and customer behaviour, including how many people visit our site, how long they browse for, and which parts of our site they visit.

How can I disable or delete cookies?

Not a fan of cookies? No worries. You can disable them (with the exception of necessary cookies) in your browser settings. However, blocking cookies may impact your browsing experience and prevent you from enjoying all of the technical features of our site.

Privacy Policy - Royal Queen Seeds

To ensure a safe online environment and guarantee adequate data protection, we strictly comply with all legal requirements. In this privacy statement, we provide information about how and for what purpose data is collected, safety measures, storage periods and contact details.


COMPANY NAME: SNORKEL SPAIN, SL (hereinafter ROYAL QUEEN SEEDS)

C/ Vilar d'Abdelà, 5 (nave 1) CP: 08170 de Montornès del Vallès

+34 937 379 846

support@royalqueenseeds.com


The present Privacy Policy sets out the terms on which we will treat personal data at ROYAL QUEEN SEEDS; this includes any personal data collected through our website https://www.royalqueenseeds.com/ as well as any other data we process in the course of our business activities.

ROYAL QUEEN SEEDS collects the following personal data for the purposes listed below:

SECTION 1 – PERSONAL INFORMATION WE COLLECT

1.1 Account purchases

Account purchases can only be made if you are in possession of a personal account. When you create an account or purchase something from our shop, as part of the buying and selling process we collect the following personal information that you provide to us:

This information is required for delivery. In addition, when you browse our shop, we automatically receive the Internet Protocol (IP) address of your computer. Based on this information, we can optimise your online experience and at the same time protect our online environment.

Purpose of data collection

We collect and store account-related data for the following purposes:

(a) to carry out obligations arising from any contracts between you and us, and to provide you with information, products and services that you may request from us;

(b) to set up, manage and communicate with you about your account and your orders;

(c) to conduct market research and analysis;

(d) to confirm your age and identity, and to detect and prevent fraud.

1.2 Newsletters

With your explicit permission, we may send you newsletters about our shop, new products and other updates. We send newsletters based on your explicit consent. In the event that you purchase a product, and in accordance with current regulations, we may send you commercial communications in accordance with the legitimate interest of our company, always about products or services similar to those you have purchased or contracted. In any case, you may exercise your right of opposition through the channels announced in this Privacy Policy. The following information is collected in relation to the newsletter:

We do not need to know the sex of the person in order to send the newsletter (data minimisation: by law we must ask for data that is strictly necessary to provide the service, and in this case knowing the sex is not necessary to send the newsletter).

Purpose of data collection

The data collected is used to:

(a) personalise our emails, including your name and gender;

(b) provide gender-specific content.

You can withdraw your consent at any time by using the link provided in the newsletter or the contact information provided in section 2.

1.3 Customer service and contact form

In order to provide appropriate support, our customer service employees have access to information related to the account. Consequently, their support will be highly effective and friendly. The data provided in our contact form is used by our CRM provider, SuperOffice. We will only use your details to respond to your message.

SECTION 2 – LEGITIMATE INTEREST

If you have purchased any of our products, please note that we may process your personal data for promotional purposes, based on Royal Queen Seeds' legitimate interest only to offer you products or services from our company and about products or services similar to those you have purchased. You may exercise your right to opt out of future messages by the means set out in this Privacy Policy or through any notification you receive.

2.1 How do you withdraw consent?

If you change your mind, you can withdraw your consent for us to contact you for the purpose of collecting, using, or disclosing your data at any time by reaching out to us at: support@royalqueenseeds.com.

SECTION 3 – DISCLOSURE

We may disclose your personal information if we are required to do so by law or if you breach our Terms of Service.

SECTION 4 – HOW LONG DO WE KEEP YOUR DATA?

At Royal Queen Seeds, we will not retain your data for longer than is necessary for the purposes described in this Policy. Different retention periods apply for different types of data; however, the longest period we will normally hold any personal data is 10 years.

4.1 Account information

Data relating to the account remains relevant for as long as the consumer is in possession of an account. Therefore, the data remains documented for as long as the account exists. When our customers delete an account, the associated data will be deleted within a reasonable period of time. Requests regarding the inspection or correction of stored personal data or the deletion of an account can be sent to support@royalqueenseeds.com.

4.2 Newsletters

In the event that you give us your consent to inform you about our products or services, we will keep your data until you express your wish not to receive any further communications from us. However, we regularly (every month) carry out a relevance check. Registered customers (and their personal information) will be deleted whenever customers do not reply to our request. In addition, our newsletter mailing has an opt-out feature. Consumers can withdraw their consent by using this opt-out feature.

SECTION 5 – COOKIES

Cookies are small information files that notify your computer of previous interactions with our website. These cookies are stored on your hard drive, not on our website. Essentially, when you use our website, your computer displays its cookies to us, informing our site that you have visited before. This allows our website to function more quickly and remember aspects related to your previous visits (such as your username), making your experience more convenient. At Royal Queen Seeds, we use two types of cookies: functional and analytical.

5.1 Functional Cookies

Functional cookies are used to enhance your online experience. Among other things, these cookies track what is added to your shopping cart. The use of these cookies does not require prior authorization.

5.2 Analytical Cookies

Analytical cookies are used for research and market analysis. The data collected with these analytical cookies is anonymous, making it unusable for third parties. The use of these cookies does not require prior authorization.

SECTION 5 – THIRD-PARTY SERVICES

Third-party services are required to conduct transactions and provide our services. In general, the third-party providers we use will only collect, use and disclose your information to the extent necessary to enable them to perform the services they provide to us.

However, certain third-party service providers, such as payment gateways and other payment transaction processors, have their own privacy policies regarding the information we must provide to them for your transactions.

We encourage you to read the privacy policies of these providers so that you can understand how these providers will handle your personal information.

In particular, certain suppliers may be located or have facilities located in a different jurisdiction than yours or ours. Therefore, if you choose to proceed with a transaction involving the services of a third party, your information may be subject to the laws of the jurisdiction in which that service provider or its facilities are located.

Once you leave our website or are redirected to a third-party website or application, you are no longer governed by this Privacy Policy or the Terms of Service of our website.

Web analytics service (anonymous data)

On this website we have integrated an element of a web analytics service (with anonymisation functionality). Web analytics can be defined as the gathering, processing and analysis of data about the behaviour of visitors to websites. An analytics service collects, among other things, data about which website a person came from (the so-called referrer), which sub-pages they visited or how often and for how long they visited a sub-page. Web analytics is mainly used for website optimisation and for a cost–benefit analysis of internet advertising.

Courier service

To complete deliveries we use a courier service. This courier service carries out the delivery between our company and the consumer's home. To complete these logistics, the company requires access to the consumer's name and address information.

Mailing service

Royal Queen Seeds uses a third-party mail service provider to send its newsletter. This provider has access to limited account information related to opt-in consent (e.g. email address).

Marketing services

Royal Queen Seeds has the support of a company that specialises in marketing and communication activities. Their access to personal information is very limited and mostly anonymous.

Payment services

At Royal Queen Seeds we use external payment services to handle our transactions (e.g. credit card payments).

SECTION 6 – SECURITY

To protect your personal information, we take reasonable precautions and follow industry standard best practices to ensure that it is not inappropriately lost, misused, accessed, disclosed, altered or destroyed.

If you provide us with your credit card information, the information is encrypted using secure socket layer technology (SSL) and stored using AES-256 encryption. Although no method of transmission over the internet or electronic storage is 100% secure, we follow all PCI-DSS requirements and implement additional industry standards that are commonly accepted. Information related to the account is protected with a hashing method. This method transforms the information into a generated hash. As a result, confidential information is protected and invisible, even to us. In addition, our databases are exceptionally protected against unauthorised access. For example, access to the database is only possible and permitted via approved IP addresses (e.g. from Royal Queen Seeds headquarters). Other attempts and addresses are rejected at all times.

Furthermore, data is anonymised as much as possible, so it cannot be directly linked to a specific consumer. With this data, however, we may be able to carry out market research and analysis. In addition, the third parties concerned (e.g. mailing service) are examined prior to our collaboration, comply with the GDPR from the EU and receive a processing agreement. Within Royal Queen Seeds, employees are assigned different access permissions. Specific permission provides access only to information that is strictly required to perform a task. Digital security measures are subject to change and must meet high requirements to ensure the safety of online customers. That is why, at Royal Queen Seeds, we appoint a security officer. Regular verification and improvement of security measures (where necessary) are part of the role.

SECTION 7 – CHANGES TO THIS PRIVACY POLICY

We reserve the right to modify this Privacy Policy at any time, so please check back regularly. Changes and clarifications will be effective immediately upon being published on the Website. If we make substantial changes to this policy, we will notify you here that it has been updated so you will know what information we collect, how we use it and under what circumstances, if any, we use and/or disclose it.

SECTION 8 – YOU HAVE THE RIGHT TO: