Cannabis Club Ownership

For recreational sales and use, it is imperative  to keep the selling and smoking very separate. This has been accomplished by different proprietors in different ways.

The current laws, depending on where you are, would require you to have members and then invite them to private (not open to the public) events. That is how the Colorado Symphony partnered with an event coordinator to facilitate the BYOC (Bring your own Cannabis) events, because they do not serve alcohol at their events.

There are a number of different models that business owners have used to legally provide a social atmosphere for members to enjoy Marijuana as it is best intended – in the sharing of a group. One way is to have members pay a one-time fee at the door, and then provide them with beverages on the house (thereby not selling alcohol, and continuing with the notion that party attendees are guests). Another model is to have members pay an annul fee, and then rotate event locations amongst  series of host locations.

iBake Denver – iBAKE currently has three smoking lounges in Colorado. Go to their website to get the addresses and contact information for the two locations.  If you are interested in opening your own iBAKE franchise, visit their franchise page. Their 3rd Annual New Years Party 2016 -$40 General Admission. These are General Admission tickets to the iBAKE New Years “Weed” Party. This includes entry into the event, which will have hash & weed there forguests to consume, a 1 month iBAKE Membership, and 1 FREE Raffle tickets for the New Years “Weed” raffle! $100 VIP ticket also comes with a FREE 1/8 of flower!

 In this excerpt from a 2013 Huffington Post article, a few other business scenarios are described:

“Washington’s law bans pot distribution by anyone but a licensed seller – and no such licenses will be issued until the end of the year at the earliest. There’s also a statewide smoking ban that prohibits smoking where people work.

So the establishments are trying various strategies to allow on-site consumption.

Frankie’s Sports Bar and Grill in Olympia is less than a mile from the headquarters of the Washington State Liquor Control Board, where officials are writing rules for the pot industry. It allows members of its private smoking room to use tobacco or marijuana.

The owner, Frankie Schnarr, said his revenue has jumped by nearly half since he started allowing pot smoking in December.

In Denver, Club 64 – named after Colorado’s law, Amendment 64 – charges a $30 yearly membership for the privilege of getting high in a private social setting. Members receive emails alerting them to the locations of club “meetings,” like a recent St. Patrick’s Day party hosted by a local bar, featuring marijuana-infused green beer.

Club 64 owner Robert Corry, an attorney, wants to open a bar where he can welcome members on a daily basis.

“A marijuana club is exactly what the voters wanted,” Corry said. “Colorado voters knew exactly what we were doing.”

The Front Tea & Art Shop in Lafayette, about 20 miles north of Denver, offered “cannabis-friendly” evenings six nights a week at which customers over 21 were allowed to bring their own pot.”

The How-To

The daily operation of the business might be different from the function of the facility during club hours, unless the sole purpose of your business is to operate a private club full time. Although, fue to the nature of the restrictions on operation, it is often a secondry function to have club spce and hours. The model you choose for your business will impct its location, equipment, people, processes, and surrounding environment.


What qualities do you need in a location? Describe the type of location you’ll have. Physical requirements:

                Amount of space

                Type of building


Is it important that your location be convenient to transportation? Do you need easy walk-in access?

Include a drawing or layout of your proposed facility in your planning – will you need to keep people out of sensitive areas by setting up restricted access zones? What other factors about your space will need to be modified if you decide to host private club hours in your facility.


Permitting is generally to remind you bout ensuring all licenses and paperwork re in order to operate your business, but also to think bout the regulations in relation to hours of operation and varying degrees of services. Basically, any existing Marijuana facility can be used to host the private club – just be certain that all the store areas are locked and separated!

                Licensing and bonding requirements


                Health, workplace, or environmental regulations

                Special regulations covering your industry or profession

                Zoning or building code requirements

                Insurance coverage

                Trademarks, copyrights, or patents (pending, existing, or purchased)



Will your existing staff be qualified to host an event? Consider ll of the following important details in relation to staffing a private club:

                Number of employees

                Type of labor (skilled, unskilled, and professional)

                Where and how will you find the right employees?

                Quality of existing staff

                Pay structure

                Training methods and requirements

                Who does which tasks?

                Do you have schedules and written procedures prepared?

                Have you drafted job descriptions for employees? If not, take time to write some. They really help internal communications with employees.

                For certain functions, will you use contract workers in addition to employees?



Credit Policies

                Do you plan to sell on credit?

                Do you really need to sell on credit? Is it customary in your industry and expected by your clientele?

                If yes, what policies will you have about who gets credit and how much?

                How will you check the creditworthiness of new applicants?

                What terms will you offer your customers; that is, how much credit and when is payment due?

                Will you offer prompt payment discounts? (Hint: Do this only if it is usual and customary in your industry.)

                Do you know what it will cost you to extend credit? Have you built the costs into your prices?


General Policies

Be sure to have l of the rules of the property well posted and help all of your members kelp you keep the operation in compliance with the law – outdoor smoking in designated areas, no sale of products on site, etc.