Adult-Use Retail

A New York adult-use retail dispensary license allows you to sell tested, compliant cannabis products to adults 21 and over. Retailers are the most visible point in the supply chain and the most frequently inspected.

This page explains what a retail license allows, where you can operate, the operational standards you must follow, and the compliance obligations that apply once you open.

What This Covers

What an adult-use retail license allows
Location and zoning requirements
Store setup and security standards
Day-to-day operational rules
Delivery, advertising, and promotion limits
Workforce and training obligations

What You’re Licensed to Do

An adult-use retail license authorizes you to:

Sell approved adult-use cannabis products to customers 21 and older
Offer in-store sales and pre-order pickup
Offer home delivery if separately approved
Operate one licensed retail location
Purchase inventory only from licensed distributors or microbusinesses

A retail license does not allow you to cultivate, process, or distribute cannabis unless you hold a separate license that permits those activities. Cross-ownership restrictions apply unless you are licensed as a microbusiness.

Location and Zoning Requirements

Before signing a lease or beginning buildout, your location must comply with:

Minimum distance requirements (500 feet from schools, 200 feet from houses of worship)
Local zoning rules that permit cannabis retail
Municipal notification requirements
Prohibitions on unlicensed co-location or shared premises

Location errors are the most common cause of licensing delays. All zoning and distance requirements must be confirmed before committing to a site.

Store Setup and Security Requirements

Your storefront must meet OCM’s physical and security standards before opening, including:

A controlled entry point with mandatory ID checks
Required signage (age restriction, license display, safety notices)
Security cameras covering all required interior and exterior areas
Alarm systems and panic devices
Secure storage areas such as safes, vaults, or locked rooms
No visible cannabis products from outside the building

Your final layout must match the plans approved by OCM and the Department of Buildings. Unapproved changes can delay opening or trigger enforcement.

Operational Requirements

Once open, retail operations must follow adult-use rules at all times. You must:

Verify a valid government-issued ID before every sale
Operate only during approved business hours
Track all inventory in METRC
Use a METRC-linked POS system
Provide a receipt for every transaction
Prevent on-site consumption
Restrict access to employee-only and secure areas

Retail operations are governed by regulation and enforced through routine and unannounced inspections.

Delivery, Advertising, and Promotions

Retailers may offer delivery only if delivery operations meet all OCM requirements, including:

Prepaid orders only
Licensed employees only (no third-party couriers)
Approved delivery hours
Tracked vehicles and compliant manifests
ID verification at delivery
No cash accepted at the door

Advertising and promotions must also comply with OCM rules:

No content appealing to minors
No health or medical claims
Required disclaimers and placement rules
Restrictions on signage, digital media, and promotions

Only OCM-compliant marketing materials may be used.

Workforce Requirements

Before working on the retail floor, employees must complete required onboarding and training, including:

Responsible Workforce Training
Role-specific SOP training
Issuance of employee ID badges
Labor law and compliance postings
Documentation of security, safety, and incident reporting

Retailers must maintain complete training records and employee documentation.

What Operators Usually Miss

Location compliance is reviewed before anything else
Floor plan changes require approval before implementation
Delivery has separate and stricter rules than in-store sales
POS, METRC, and inventory must match exactly
Marketing violations are enforced even if products are compliant

When This Comes Up

Site selection and lease negotiation
Application submission
Buildout and pre-opening inspections
Daily operations and staffing
Compliance audits and renewals

What Happens If You Ignore This

Noncompliance may result in:

Delayed or denied license issuance
Fines and enforcement actions
Product holds or inventory loss
Suspension or revocation of your license
Inability to renew or expand operations

Retail licenses carry high visibility and frequent inspections.

License to Launch
Dispensary Operations and Compliance
Product Standards, Testing, and Safety
SEE Program Overview
Microbusiness License Guide