Adult-Use Retail License

What This Section 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

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

Store Setup and Security Requirements

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

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

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

Retailers must maintain complete training records and employee documentation. 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

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

Retail licenses carry high visibility and frequent inspections. 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

Related OCM Licensing Section Pages

• Microbusiness License
• Processor License
• Distributor License
• Cultivator License
• Delivery License
• Registered Organization (Medical)

Source Material‍

• Licensing (OCM)
• Rules by License Type