Mistakes to avoid in cannabis license applications

8 Common Mistakes to Avoid

Let’s explore the most frequent missteps that can jeopardize an application.

1. Incomplete or Incorrect Documentation

Missing a signature or uploading outdated forms can derail your submission. Regulators typically require:

• Fully completed forms with accurate details.

   

• Supporting documents, such as site diagrams and SOPs.

   

• Consistent information across all sections.

   

Before submitting, cross-check every document and use a checklist to ensure nothing is overlooked.

2. Ignoring Local Zoning Rules

Many applicants focus on federal or provincial requirements but overlook local land use restrictions. Municipalities often have strict zoning laws that dictate where cannabis operations can be located. Submitting an application without confirming zoning compliance can lead to rejection or forced relocation.

Tip: Before signing a lease or purchasing property, confirm the zoning status with the local planning department.

3. Underestimating Financial Requirements

Starting a cannabis business demands significant upfront capital. Regulators look for proof that an applicant has the financial stability to operate responsibly. Insufficient funding plans or vague financial statements can raise red flags.

To avoid this:

• Prepare a detailed budget that covers startup costs, security measures, staffing, and compliance fees.

   

• Keep clear records showing the source of funds.

   

• Be ready to demonstrate your financial readiness during inspections.

   

4. Poor Security Planning

Security is one of the most scrutinized aspects of a cannabis license application. Regulators want assurance that your facility will prevent theft and unauthorized access.

A solid security plan should include:

• Video surveillance systems covering all critical areas.

   

• Restricted access protocols for employees and visitors.

   

• Alarm systems and secure storage for cannabis products.

   

Applicants often fail to provide enough detail or assume generic security measures suffice. Instead, tailor your plan to your specific facility and local crime risks.

5. Weak Quality Assurance and Compliance Plans

Cannabis businesses must maintain product safety and consistency. Regulators expect a clear quality assurance plan detailing:

• Standard operating procedures (SOPs) for every stage of production.

   

• Procedures for recalls and complaints.

   

• Internal auditing schedules.

   

Failing to show how you’ll monitor product quality can cost you approval. Partnering with experts like MFLRC ensures your QA/QC systems meet required standards, including GMP and EU-GMP.

6. Overlooking Community Engagement

Public concerns often influence local councils when approving new cannabis businesses. Some jurisdictions require applicants to demonstrate community consultation or support.

To avoid community backlash:

• Hold meetings with neighborhood associations.

   

• Address common worries such as odor, traffic, and safety.

   

• Document your engagement efforts to include in your application.

   

7. Using Generic Templates

A common trap is relying on free or generic application templates found online. While templates can help with structure, they rarely satisfy regulators who expect site-specific plans.

Each operation has unique characteristics based on location, facility layout, staffing, and local rules. Customizing your documents to reflect these specifics makes your application more credible.

8. Trying to Do It All Alone

The final mistake is assuming you don’t need expert guidance. The cannabis licensing landscape is technical and time-consuming. Mistakes are easy to make without up-to-date regulatory knowledge.

Consulting firms like MFLRC specialize in navigating these challenges. From writing SOPs to conducting compliance audits, having professionals on your side reduces risk and helps you submit a complete, compliant application.