How to Open a Dispensary in Montana

Are you thinking about opening a recreational cannabis dispensary in Montana? Congratulations!

Montana voted for medical cannabis in 2004 but didn’t pass Initiative 90 until November 2020, which legalized recreational cannabis. Sales officially began in January of 2022. Montana was the 14th state to legalize cannabis for adult use.

As of October 2024, Montana has around 400 active dispensaries, including medical and recreational stores. Currently, there are no limits to the number of active licenses or the number of locations licensees can open. However, lawmakers have introduced a bill to cap the current number of dispensaries and prevent any new dispensaries from opening until 2027.

Montana’s cannabis program is overseen by the Montana Cannabis Control Division (CCD). You can find Montana's cannabis laws here.

This guide will outline how to open a dispensary in Montana, including information on licensing, financing, real estate, security, staffing, compliance, inventory, and tech stack.

Scroll through for a step-by-step process for getting a dispensary open in Montana, or use the links on the left to jump directly to your most pressing questions.

Disclaimer: Always consult your lawyer, accountant, realtor, and other trusted consultants to help you navigate the complexities of opening a cannabis dispensary. Flowhub aims to illustrate and educate but is not to be construed as legal or financial advice.

Plan your Montana cannabis dispensary

The first step for future dispensary operators in Montana is to understand the applicant cycle and how cannabis dispensary licenses are issued.

Form a business entity in the state of Montana

If you haven’t yet officially formed a business entity, that’s the first task. Work with a lawyer to ensure everything is correct, but at a minimum, you’ll need to decide whether you’re creating an LLC or corporation and file with the state of Montana.

Then, you can get tax ID numbers for the business, open a business bank account at a cannabis-friendly bank or credit union, and decide on your business insurance needs, including general liability insurance, property insurance, workers’ compensation insurance, and product liability insurance.

Note: Every city, county, and state is different. Based on your business type and location, you may have additional steps for taxes, licenses, or fees.

Write a business plan for your Montana dispensary

Cannabis is a complicated industry, with more compliance and legal considerations than other types of businesses. A rock-solid business plan helps ensure your success in the competitive cannabis industry.

While you don’t have to submit a business plan to the CCD, you must disclose your funding sources, organization structure, employee chart, and location information, all of which are key components of the plan.

A good business plan should include:

• The physical location of your dispensary

• Funding plan, or where your startup and ongoing capital will come from

• Sourcing plan for procuring your cannabis products

• Revenue projections

• Estimate or the actual number of employees, or who you’ll hire for what roles, and your dispensary org chart

• Diversity and equity plans

• Marketing plan (contrary to popular belief, cannabis doesn’t just sell itself!)

• Safety and security plan

• Technology plan, including which cannabis point-of-sale and compliance software you’ll use to manage your dispensary

• Any other relevant information you want to document

Find a cannabis dispensary location in Montana

Your dispensary location is a critical piece of the puzzle, but it's not an easy process. You’ll need something in a visible location with ample parking and enough space to achieve your ideal workflow.

Most importantly, it must be in a municipality accepting cannabis businesses. Montana municipalities can regulate and even opt out of accepting cannabis businesses. They may also require more strict limitations than the state rules, so talk to your local representatives for specifics. Here is a map showing which counties in Montana have approved or rejected cannabis businesses.

When you apply for a dispensary license, you must provide a proposed location that is compliant with all regulations. You must also provide proof of ownership or express permission from the owner.

Dispensaries in Montana cannot be within 500 feet of and on the same street as a building used exclusively as a:

• Church

• Synagogue

• Other place of worship

• School or postsecondary school other than a commercially operated school

• A child-care facility licensed or registered by the Department of Public Health and Human Services.

This distance must be measured in a straight line from the center of the nearest entrance to the place of worship or school to the closest entrance to the licensee's premises. Note: The locality may require a greater distance.

Find a local real estate professional who specializes in cannabis real estate to help in your search. Use public resources, such as city zoning and administration offices.

When looking for a location for your dispensary, focus on spaces that:

• Align with your business plan

• Are large enough to meet your needs

• Are in an appropriate location to serve foot traffic

• Have enough parking

• Have opportunities for expansion/growth

• Are within your budget

Don’t just look at monthly costs, but also factor in how much it’ll take to renovate or retrofit the space for your business needs. Finally, look at local competition (both existing and planned).

Finding the perfect location for your retail dispensary involves many factors. Take the time necessary to secure the best possible space to help ensure your success.

Secure funding for your Montana cannabis dispensary

Now that you have a plan for your new recreational use dispensary, you can create a more specific budget and plan.

A cannabis business can generally expect expenses in these categories:

• Real estate and build-out - consider your initial costs, plus ongoing rent or mortgage. You’ll probably also have renovation expenses to start.

• Licensing/application fees - the cost of getting licensed to run a dispensary in Montana. You’ll also need to plan for your renewal fees—$5,000 annually.

• Operational costs - your day-to-day business operating expenses, including, but not limited to, utilities, business or professional fees, marketing, etc.

• Hardware, software, security, and other tech - many of these are monthly or annual subscriptions but may include more sizable startup costs.

• Staffing costs - the cost of hiring employees, including salaries, benefits, taxes, etc.

• Inventory costs - or the expense of sourcing and purchasing cannabis products. You’ll need enough stock on your shelves for opening day and beyond.

• Taxes - cannabis businesses are heavily taxed and can’t participate in normal business write-offs like 280E, so plan for your quarterly tax payments.

Do you have a plan for where this money will come from? As a cannabis entrepreneur, remember you don’t have the same funding options as a traditional entrepreneur. Cannabis businesses don’t qualify for SBA loans or similar because of the federal legality, but loan options are still available.

As a hopeful cannabis dispensary operator in Montana, you have a few options for funding:

• Self-funding - the easiest option is already having access to capital (acquired through legal means).

• Friends and family - another possible way to meet dispensary capital requirements is through loans or investments from family and/or friends.

• Partners - many cannabis businesses are legally set up as partnerships, where each partner contributes something meaningful. Partners can be silent (primarily as the funder) or active; both are great if they serve your needs. Check eligibility requirements to ensure your partnership meets the criteria for applying for a license.

• Loans - depending on your personal finances, you may be eligible for a personal loan to cover some (or all) of the upfront costs of opening a dispensary. You may also be able to secure a dispensary business loan, but remember to be honest with your lender about how the funds will be used; not all financial institutions will work with cannabis businesses.

• Private funds - private equity, angel investors, or venture capital—may have to look to outside investors to fund your cannabis business. This option will decrease your ownership stake in your company. It is a popular option in the cannabis industry and has yielded great results for many entrepreneurs!

• Crowdfunding - another potentially viable option is to look to the general population to support your business venture.

• Brokers - cannabis-specific brokerage companies can help you find funding for startup expenses, equipment, and more. FundCanna is one option for Montana dispensary businesses.

Note: You must disclose your funding sources in your application.

What does it cost to open a dispensary in Montana?

Most sources suggest having between $250,000 and $1 million to open a dispensary, but it helps to plan for a specific number rather than a range of options. Here’s a formula to give you a sense of what to expect. You can come back and fill in the details as you know your unique estimates.

Note: This estimate is for a dispensary license. Each proposed location must undergo its application process.

Application and annual fees for cannabis retailers in Montana = $5,000

• Application fee = $5,000

  • A 20% processing fee is due when applying.

  • The remaining 80% is due before final licensure.

  • This 20% fee is non-refundable.

• Renewal Fee = $5,000

  • Licenses are granted for one-year periods and must be renewed annually.

Real estate fees = $150,000

• Includes annual rent or mortgage premiums plus upfront design costs.

• For larger remodels the cost will be higher in more expensive cities, like Bozeman, or cheaper in more affordable areas of the state.

• Plan for higher costs upfront, but the costs of rent/mortgage and maintenance/repairs will stabilize over time.

Employee salaries = $300,000

Your store size and operating procedures will determine how many initial staff members you’ll need, but plan for around six employees to start, including a manager, several budtenders, and an inventory specialist. This figure includes an average of $20/hour, plus overtime, benefits, etc.

Professional fees and services = $50,000

This may decrease in future years, but to start, expect to pay for legal, financial, insurance, and other professional consulting fees to get your business started.

Security, hardware, and software = $50,000

This covers your business's network, security, hardware, and software, including computers, TVs, printers, scanners, the Internet, and other software like POS, ecommerce, payments, etc.

After your initial investment, plan for at least $2,000 monthly in recurring software expenses.

Marketing expenses = $100,000

Perhaps the most variable of your costs when opening a cannabis business is that this factors in one full-time marketing staff person (or agency costs per year), plus expenses for your website, ads, printing, etc., to promote the dispensary.

Cannabis products = $1,500 per pound

Your cost of products for opening day (plus ongoing stocking) will vary greatly based on your store size, number of SKUs, stock on hand, and supplier rates, but plan for an average of $1,500 per pound of cannabis products, including flower, edibles, vape cartridges, tinctures, topicals, lotions, capsules, beverages, prerolls, etc.

GRAND TOTAL = $655,000* (not including cannabis product inventory)

*Disclaimer: This is a rough estimate of the upfront and first-year costs of opening a cannabis dispensary in Montana. It is to be used for informational and illustrative purposes only, as every market, location, and business will have unique startup costs.

Apply for a Montana recreational dispensary license

To open a dispensary in Montana, you’ll need a license to be able to possess, sell, or deliver cannabis.

The basics of applying for a cannabis license in MT

• Only existing dispensary businesses—both medical and recreational—can apply for additional locations. New dispensary license applications are closed until 7/1/2025 (and legislation is currently aiming to cap all new stores until 2027).

• Montana license types are straightforward. There are no social equity or microbusiness license types in the state.

• Cannabis business owners in Montana are not limited in the number of locations they can open or the types of licenses they can obtain.

How to get a dispensary license in Montana

All cannabis business license applications are submitted and managed through the TransAction Portal (TAP).

The TAP system will walk you through several pages of required information. Enter all information wholly and correctly, saving your application as you work. Online sessions will time out after 45 minutes of inactivity.

Be sure to gather all your documentation before starting the application to avoid a denial resulting in the loss of the non-refundable 20% processing fee.

Here are the steps you can expect:

1. Create an account or log on. If you have an existing TAP account, log on. If not, the application will include account setup instructions.

2. Apply and include the following details:

• Business Information - Applicants must provide details about themselves and/or the business. This includes SSN, name, phone number, email address, and date of birth for individuals. For businesses, this includes EIN, business name, business type, phone number, and email address. You’ll also provide a location address and mailing address.

• Business ownership (if applicable) - All individuals must be listed for businesses with multiple owners.

• Documentation of Montana residency - Individuals applying for a business license must have been residents of Montana at the time of application submission and for one year before requesting licensure.

• Documentation of date of birth, such as driver’s license, birth certificate, ID, or passport.

• Consent to fingerprint - All individuals applying for a business license (with at least 5% financial interest or greater) must submit fingerprints and undergo a background check.

• Documentation of property ownership (or property owner permission) - You must prove that you can operate at the proposed premises. If the applicant owns the property, acceptable forms of documentation include a deed, title, mortgage paperwork, property tax information, etc. If the applicant doesn’t own the property, you’ll need to provide permission from the owner. Here’s the permission form.

• Business organization chart - Applicants must provide an organizational chart showing the overall ownership structure for the business. It must include all entities, controlling beneficial owners, passive beneficial owners, financial interest holders, and employees. The chart must be updated anytime a change in ownership or organization occurs. Here’s a sample chart provided by the CCD.

• Business structure form - All owners, financial interest holders, and managers must be disclosed. This form must be updated anytime a change in ownership or organization occurs. Here is a sample business structure form.

• Source of funding verification - Applicants must provide proof that they have a source of funding from a suitable source.

• Building inspection report - Each physical location on a business license must pass a building inspection. Documentation of passing this inspection is required. More information can be found here.

• Fire inspection report - Locations must pass a fire inspection. You’ll need to provide documentation to pass this inspection. More information can be found here.

• City and county approvals - Locations must have documented approval from the local city, county, or both to operate. Documentation will vary by locality.

• Pay fees - All business license applications require a 20% deposit payment with submission before the review process can begin. This deposit fee is non-refundable regardless of application approval or denial. Note: The final invoice for the remaining 80% will be sent after a successful application review and premises inspection. Full payment must be received before the application is approved and a license is issued.
  

• Affirmation, signature, and submission - Type your name and work through the confirmation screens. Your application is submitted when you see the screen with an application confirmation number and retrieval code.

• State preliminary check - The CCD will first perform a preliminary check to ensure the application is complete and all supporting documents have been uploaded. Background checks are then conducted on all individuals named owners, employees, or key participants in the business.

• Application review - The CCD will evaluate the proposed business's compliance with state laws and regulations, including location zoning, security measures, and funding sources.

• Site inspection - The division may conduct on-site inspections to verify that the location meets all dispensary requirements. Learn more about inspections here.

• Application decision - If all conditions are met, the CCD will issue a license to the applicant. If the application is denied, a reason is often provided, and the applicant can usually correct issues and resubmit or appeal the decision.

• Issuance of license - If the application passes all stages and pays the remaining invoice, the applicant is issued a license to operate.

Note: Timelines vary, but the division aims to process applications within 90 days of receiving all required documents.

Design your Montana dispensary

Dispensary design isn’t just about where your dispensary is or what it looks like. It’s how your shopper experiences and interacts with your brand. That’s what makes you memorable!

Here’s a short list of your considerations for in-store design and layout:

• How customers will move throughout the store

• Whether they will pay at a terminal, handheld device, or kiosk

• Whether there are different pathways for in-store vs. online orders

• How your products will be displayed/showcased

• Your brand elements and design

• Use of entry or waiting room space

• Security concerns about doorways

• Where secure inventory is stored (both on the floor, if applicable, and in a vault)

• Where staff will stand and work

• Breakroom or safe staff area

• Bathrooms

Montana also has several specific requirements that may impact how your dispensary looks and functions:

• A licensee may not sell or otherwise transfer marijuana or marijuana products through a drive-up window, except that a dispensary may hand-deliver marijuana or marijuana products to a registered cardholder in a vehicle that is parked immediately outside the subject dispensary.

• A marijuana business may not dispense or otherwise sell marijuana or marijuana products from a vending machine or allow such a vending machine to be installed at the interior or exterior of the premises.

• A marijuana business may not provide free marijuana or marijuana products or offer samples of marijuana or marijuana products.

• Marijuana or a marijuana product may not be given as a prize, premium, or consideration for a lottery, contest, game of chance, game of skill, or competition of any kind.

• An adult-use dispensary or medical marijuana dispensary may not operate between the hours of 8 p.m. and 9 a.m. daily.

• A marijuana business licensee must conspicuously display its site identification certificate and make it available at each licensed premises.

• All marijuana dispensaries must conspicuously post a notice or notices at each entry to the licensed premises that contains all of the following language:
  • "Persons under twenty-one years of age are not permitted on these premises without a valid registry identification card or valid worker permit. A legal guardian must accompany registered cardholders under the age of 18."
  • "No on-site consumption of marijuana or marijuana products."
  • "No on-site opening of marijuana or marijuana products."

Create a safe and secure Montana dispensary

All licensees must have a written, proactive security plan that safeguards against theft, diversion, or tampering of marijuana or marijuana products both on the licensed premises and during transit, if applicable.

The security plan must, at a minimum, contain the following policies or procedures of how a licensee:

1. Restricts access to the areas of the licensed premises containing marijuana or marijuana products to authorized persons only.

2. Provides for identification of authorized persons to be in the areas of the marijuana business that contain marijuana or marijuana products.

3. Provides electronic monitoring of the licensed premises.

Here are the minimum requirements for all licensed premises:

• Only one single secure entrance to the building or licensed premises for public ingress and egress.

• A security alarm system should be installed on all perimeter entry points and windows.

• A video monitoring system with cameras that:

  • Have a minimum digital resolution of 640 x 470 pixels or pixel equivalent for analog.

  • Record continuously twenty-four hours per day or on a motion-sensor system, at a minimum of ten frames per second.

  • Are placed to allow for optimal identification of any person and activities in limited access areas.

  • Are placed to record all entrances and exits to an indoor facility from both indoor and outdoor vantage points.

• The video monitoring system must also:

  • Keep all recordings for a minimum of 60 days.

  • Record images with clear and accurate date and time display.

• All monitoring system videos are subject to inspection by the department and must be copied and provided to the department upon request.

Hire and retain dispensary staff

Now that you’re getting closer to opening day, it's time to hire and train your dispensary employees. This team is vital to the success of your dispensary.

First, create your dispensary org chart. Based on your business plan, location, store design, and vision, what role will you play in day-to-day operations, and what additional staff do you need? What is the hierarchy? What benefits will you offer? Do you have the funds to pay your staff appropriately?

As a starting point, you’ll need someone to manage your store, budtenders, or cannabis sales associates to serve customers and fulfill orders, greet your shoppers (and secure the entryway), security, and manage inventory and/or compliance. Based on the size and complexity of your business, you might need more or fewer people on your team.

Be sure to understand Montana’s ordinances around hiring and staffing and follow all requirements specific to cannabis brands and general hiring/staffing rules. These could include procuring cannabis employment IDs, processing fingerprints and background checks, age requirements, mandating certification training attendance, payroll taxes, and at-will parameters.

All staff must have a valid Worker Permit before starting work in Montana. Permits cost $50 and are issued for one year.

They must be renewed annually. Employees can apply for and manage their Worker Permit using TAP. Workers do not need to be Montana residents, but they are required to complete educational programs to receive a permit. Learn more.

Understand compliance

At this point, you should understand Montana cannabis laws and how to stay compliant.

Dispensaries cannot sell cannabis or cannabis products to anyone under the age of twenty-one or any visibly intoxicated individual. Valid identification and proof of age is required.

As a reminder, consumers may possess and use up to one ounce of marijuana at any time, including dried, processed marijuana or its equivalent. Marijuana and marijuana products sold at a dispensary are regulated and sold based on the concentration of THC in the products and not by weight. A single package is limited to:

• For marijuana sold as flower, 1 ounce of usable marijuana. The total potential psychoactive THC of marijuana flower may not exceed 35%.

• For a marijuana product sold as a capsule, no more than 100 milligrams of THC per capsule and no more than 800 milligrams of THC per package.

• For a marijuana product sold as a tincture, no more than 800 milligrams of THC.

• For a marijuana product sold as an edible or a food product, no more than 100 milligrams of THC. A single serving of an edible marijuana product may not exceed 10 milligrams of THC.

• For a marijuana product sold as a topical product, a concentration of no more than 6% THC and no more than 800 milligrams of THC per package.

• For a marijuana product sold as a suppository or transdermal patch, no more than 100 milligrams of THC per suppository or transdermal patch and no more than 800 milligrams of THC per package.

• For any other marijuana product, no more than 800 milligrams of THC.

The CCD chose Metrc as the state’s official Seed-to-Sale Tracking program. Metrc offers a wealth of education and training for new and prospective dispensary owners. We recommend attending those trainings and taking advantage of the Montana-specific resources Metrc provides.

Cannabis stores in Montana are required to track all adult-use cannabis and cannabis products at every stage of their lifecycle. This includes all transportation to the store until the point of being sold to a customer, delivered to a testing facility, or disposed of/destroyed.

It’s imperative that licensees not only use Metrc to its full ability but integrate it with their POS and inventory management software to ensure compliance. Flowhub can meet all the state’s requirements for product intake and control. We’ll talk more about your software vendors in a moment.

Source and intake cannabis products

Now’s when things start getting fun: ordering and receiving your product! Unless you have a cultivation license and plan to grow all your products, you’ll need to find cannabis growers, manufacturers, and distributors to supply your store.

In Montana, you are allowed to sell:

• Cannabis flower

• Marijuana seeds and clones

• Edibles

• Concentrates

• Beverages

• Topicals

• Cannabis paraphernalia

• Non-cannabis items

As you look for suppliers in Montana, there are several things to keep in mind:

• What products do they carry (think about your product mix)

• The taste and quality of the products

• Prices (including the ability to negotiate bulk discounts)

• Fulfillment (how they get products to you and when)

• Testing processes and results

• Reliability (will they run out suddenly, stop communicating, etc.)

• Process for placing orders and overall organization

You also need to ensure your suppliers are licensed facilities, as you cannot order supplies from unlicensed distributors and are in good standing with the state. All products must comply with packaging and label requirements.

Intake and store inventory

Now that your inventory arrives at your store for opening day, you must intake those products correctly.

Once your cannabis products arrive, you must intake them into your store in a specific way to remain compliant with Metrc. You must receive and review a manifest before bringing physical inventory into your store. The manifest is created by the supplier, you, or other cannabis companies.

The manifest includes the product's harvest, weight, unit of measure, cost, etc.

You must review the manifest and, if everything is correct, accept it. When the package arrives, you'll physically inspect it and make sure it’s exactly as ordered.

You then accept it in Metrc, which tells Metrc that you legally possess this inventory.

Now, you can stock your shelves and sell the product. However, you’ll also need to develop SOPs for inventory intake and auditing.

Packaging and label requirements

All marijuana products shall be produced, packaged, and labeled in a manner that protects public health and is not attractive to children. Marijuana or marijuana products must be sold or otherwise transferred in resealable, child-resistant exit packaging that complies with federal child resistance standards.

The state has a dedicated web page to help licensees understand packaging and labeling, as they vary by product type. Learn more.

Packaging

All packaging of marijuana and marijuana products shall:

• Protect the product from contamination and do not impart any toxic or deleterious substance to the marijuana or marijuana product.

• Be capable of being resealed if the package contains more than one serving size.

• Not primarily appeal to children. Packaging that mainly appeals to children includes but is not limited to packaging that:

  • Depicts a child.

  • Portrays objects, images, celebrities, or cartoon figures that primarily appeal to children or are commonly used to market products to children.

  • Otherwise has a particular attractiveness for children beyond the general attractiveness for adults.

• Not bear any reasonable resemblance to the trademarked or characteristic packaging of any commercially available product, including but not limited to candy, snacks, baked goods, or beverages.

• All marijuana and marijuana products provided to customers at the point of sale shall be in exit packaging that:

  • Is child resistant as defined in ARM 42.39.102

  • Is opaque

  • Contains the warnings required by 16-12-215, MCA, in the format required by 16-12-208, MCA

• Drinkable marijuana products that contain more than one serving per package must include a device or mechanism for measuring a single serving of the product.

• Exit packaging of marijuana and marijuana products provided to customers at the point of sale may not contain any other information or design elements than what is allowed.

Labeling

Labeling requirements apply to marijuana and marijuana products sold from a dispensary to customers and wholesale products intended for final sale to customers from one licensee to another. Labels shall not contain any false or misleading statements or information.

All information required on the label of marijuana or a marijuana product shall be:

• Unobstructed and conspicuous. A licensee may affix multiple labels to a package or use a booklet, accordion, or other type of label, provided that no required information is completely and permanently obstructed.

• Displayed in a legible font, such as Times New Roman, Arial, or Helvetica. The lowercase letter "o" must be at least one-sixteenth of an inch in height.

• Displayed in a color that contrasts conspicuously with the background.

• Displayed in English, although a licensee may choose to display required information in additional languages.

All marijuana or marijuana products shall be labeled with the following information:

• The strain name, except when the marijuana or marijuana product contains a mixed strain, then indicates a mixed strain.

• The common or usual name of the marijuana product (e.g., flower, inhaled extract, edible, cookie, or drinkable, topical, transdermal patch).

• The unique identification number generated from the seed-to-sale tracking system correlated to the marijuana or marijuana product's final form testing results.

• Date of harvest for marijuana flower or date of manufacture for marijuana products.

• The net quantity of contents of the marijuana product. The quantity statement shall be stated in U.S. Customary Units and Metric (SI) Units, with the latter enclosed in parentheses. If the product is a liquid, expressed in terms of fluid measure and preceded by the phrase "Net Contents" or "Net." If the product is a solid, semi-solid, or viscous, expressed in terms of weight and preceded by the phrase "Net Weight," the abbreviation "Nt. Wt.," or "Net." In addition to weight or fluid measure, a licensee shall include the number of servings in the net quantity of contents statement if the product is a multi-serving marijuana product (e.g., Net Weight: 2 oz. (56.7 g) (10 cookies), Net Contents: 2 fl. oz. (2 mL or milliliters)).

• The following statement: "This product has been tested and meets the requirements of the state of Montana."

• A QR code that links to the product's certificate of analysis with a statement informing customers they can scan the code to see additional product information.

• The universal symbol (which is available to download from the department's website). The universal symbol may be a sticker if the sticker meets the requirements of this section and shall be at least .33 inches wide and .33 inches high. It may not be colored by hand and/or using a highlighter, marker, etc.

• The manufacturing method (e.g., mechanical, chemical) and for chemical manufacturing must identify the solvent(s) used in the manufacturing process.

All marijuana and marijuana products shall be labeled verbatim with the following warnings:

1. "Keep out of reach of children and pets."

2. "This product may be addictive."

3. "This product may have intoxicating effects. Do not drive while under the influence of marijuana."

Additional information may be required, depending on product type.

Packaging and labeling approval

Prior to selling, licensees must submit both a package and a label application in a form prescribed by the department to receive approval. Templates are also available to speed up the review process. Get the templates here.

Market your dispensary

Ok, your store is ready, the team is trained, and you have inventory. Now, you need to know that your dispensary is opening soon!

Cannabis businesses notoriously have more challenges with marketing than traditional brands because of stigma, regulations, and the federal illegality of cannabis. But you can still use many marketing tactics to promote your new dispensary.

Here are a few areas of focus to consider:

1. Develop a beautiful, functional dispensary website. Enabling online ordering through your website is a great way to appeal to digital-friendly shoppers.

2. Fine-tune your social media presence (but keep the platform’s terms and conditions in mind!)

3. Consider events to attract new customers to your store.

If you're opening a dispensary in Montana, you need to understand the advertising regulations. Generally, your ads must comply with all applicable municipal and state ordinances and rules that regulate signage and advertising.

According to Montana regulations, "Advertise or advertising" means the publication, dissemination, solicitation, or circulation of visual, oral, or written communication to directly induce any person to purchase or consume marijuana or marijuana products. Advertising includes promoting special pricing, sales, or discounts on marijuana and marijuana products. Advertising does not include branding, marketing, packaging, or labeling marijuana and marijuana products or information regarding special pricing, sales, or discounts on display within licensed premises.

"Marketing" means a business's action to promote its brand, location, or services. Marketing does not include references to specific marijuana or marijuana products.

Here are a few more particulars:

• A licensee may promote its business and market its brand but may not advertise marijuana or marijuana products except in electronic advertising. Note: A listing in a directory of businesses authorized under this chapter is not advertising for this section.

• A licensee may engage in electronic advertising, such as maintaining a website and advertising on web applications, provided that no electronic advertisement produced by the licensee contains a statement or illustration that:

  • Is false or misleading.

  • Promotes overconsumption of marijuana or marijuana products.

  • Depicts the actual consumption of marijuana or marijuana products.

  • Depicts a person under 21 years of age consuming marijuana.

  • Makes any health, therapeutic, or medicinal claims about marijuana or marijuana products.

  • Is designed in a way that is likely to appeal to minors and includes cartoons, animals, children, or any other likeness to images, characters, or phrases that are designed in any manner to be appealing or to encourage consumption of marijuana by persons under 21 years of age.

• A marijuana business that maintains a webpage must utilize appropriate measures to verify that individuals visiting the webpage are 21 years of age or older.

• A licensee may use the phrase "marijuana" or "cannabis" in its signage or its electronic advertising.

• A licensee's outdoor signage must comply with applicable local jurisdiction sign ordinances and regulations. It may not use colloquial terms for marijuana or marijuana products (e.g., pot, reefer, weed). It may not use an image or visual representation of useable marijuana, marijuana-infused products, marijuana concentrates, marijuana paraphernalia, or an image that indicates the presence of a product such as smoke, edibles, etc.

• Marijuana business social media accounts that advertise marijuana or marijuana products must be private and must contain a visible notice on the main page stating that only persons 21 years of age or older may follow the account.

• A marijuana business that uses a QR code in an electronic advertisement must utilize appropriate measures to verify that individuals visiting the QR code's webpage are 21 or older.

• A marijuana business may not:

  • Engage in advertising via marketing directed towards location-based devices, including cellular phones, unless users affirmatively opt into receiving push notifications related to marijuana or marijuana-related products.

  • Utilize unsolicited pop-up or push-to advertising on the internet.

  • Advertise on television, radio, or print, such as newspapers, magazines, flyers, and mailers.

  • Engage in advertising or utilize signage that asserts its products are safe.

  • Utilize a billboard. Here, "Billboard" means a sign that directs attention to a business, commodity, service, entertainment, or attraction sold, offered, or existing elsewhere than upon the same premises where such sign is displayed.

  • Use objects such as toys or inflatables, movie or cartoon characters, or any other depiction or image likely to be appealing to youth, where the objects, images, or depictions indicate an intent to cause youth to become interested in purchasing or consuming marijuana products.

  • Use or employ a commercial mascot outside of, and in proximity to, a licensed marijuana business. A "commercial mascot" means a live human being, animal, or mechanical device used to attract the attention of motorists and passersby to make them aware of marijuana products or the presence of a marijuana business. Commercial mascots include, but are not limited to, inflatable tube displays, persons in costume, or wearing, holding, or spinning a sign with a marijuana-related commercial message or image, where the intent is to draw attention to a marijuana business or its products.

Choose your network, hardware, and cannabis tech stack

Your technology stack is crucial to success as a cannabis business owner. Some are must-haves for compliance, like your security system and cannabis point-of-sale, while others are important to differentiate your store and create a great customer experience.

Here are some of the technology solutions you may want for your dispensary:

• Network

• Hardware

  • Printers (both letter-sized and receipts)

  • TVs

  • Cash drawers

  • Computers (for staff work, like inventory)

  • Tablets or terminals

  • Barcode scanners

• Software

  • POS

  • Ecommerce

  • Compliant payment provider for non-cash transactions

  • Digital menus

  • Kiosks

  • Loyalty programs

  • CRM

  • HR/Payroll tools

  • Accounting software

  • Analytics software

  • Social media management and monitoring

  • Website

  • Mobile app

You don’t need to invest in every possible cannabis-specific technology solution. But be sure to invest in tools to help you achieve your sales goals, stay compliant, and satisfy modern shoppers.

How to choose a cannabis retail POS system

Your cannabis point-of-sale system is the most critical tool in your stack. It is the central driver for compliance, inventory management, and customer satisfaction.

Every POS option is a bit different—and not all work in every state—so do your homework before signing that dotted line.

Here are 10 tips for choosing marijuana retail software.

1. State compliance tracking: Software is so important because it facilitates state reporting (in Montana’s case, Metrc). Look for an API integration that manages this seamlessly to save you time and provide peace of mind. Flowhub is the first-ever integration partner with Metrc and maintains consistent lines of communication with them, guaranteeing the best cross-functional POS and seed-to-sale support in cannabis.

2. Hardware compatibility: As mentioned above, your chosen software and hardware must be compatible. Pick a cloud-based software that doesn’t restrict hardware options so that you don’t incur additional hardware costs or change hardware if you change point-of-sale systems later.

3. Customer support: Your ability to get up and running quickly is important, but getting your questions answered long-term is just as vital. As you look at different software, ask about the level of support you’ll receive.

4. Ease of use: Software that fuels your medical marijuana or adult-use retail stores must be easy and intuitive, and staff must learn it quickly. Pay attention to how the system functions and whether you think it’ll make your staff more productive.

5. Inventory management: As mentioned earlier, you need to manage inventory. Ensure the POS you choose has all the capabilities you need (and then some).

6. Built-in compliance: Software isn’t just important for compliance related to state reporting (like Metrc); it should also help you stay compliant with state marijuana laws, such as purchase limits. Ensure the software you choose has built-in safeguards that address your market-specific needs.

7. Discrepancy reporting: Your Metrc, physical, and point-of-sale inventory must always be aligned. If there is a discrepancy, you need to know about it and how to resolve it. Your software should include built-in tools to help you identify and resolve inventory discrepancies.

8. Activity tracking: In an industry with more loss and theft than others, it’s important to see which employees took what actions and when, such as making a sale, opening a drawer, moving inventory, etc.

9. Open API and integrations: Is the software compatible with other vendors? Integrations are important to consider, especially if you’re interested in online menus, delivery, loyalty programs, or other technology offered by partners.

10. Specialization: Consider the best software for each part of your business. If you have marijuana cultivation facilities, manufacturing facilities, and cannabis retail operations, it’ll be tempting to pick one software for it all. You can’t deny that better visibility is tempting, but all software is best at one thing. If you choose one for all, you’ll disadvantage the other two parts of your business. Instead, look for vendors who integrate seamlessly.

Need help opening your dispensary?

Opening a dispensary in Montana is quite an accomplishment. The market is still in its infancy, so now is a great time to get involved.

One of the most critical elements of owning a dispensary is considering the final point of sale. Since cannabis businesses don’t have the same options as traditional retailers, companies like Flowhub are filling the gap.

Book a call with our team to explore a POS demo and learn how using Flowhub at the point of sale can save you time and money!