How to Start Fundraising For Your Cannabis Business

By: Michael Werner/Canna Advisors

Minnesota’s Cannabis Event Organizer license allows businesses to legally plan and host cannabis-related events such as festivals, expos, or vendor fairs.  These events can include the on-site sale and consumption of cannabis and hemp products, but only by licensed cannabis businesses.

Temporary Cannabis Licensing

Organizer licenses are similar to existing retail dispensary and consumption lounge licenses but only issued per event. This temporary license is a vital tool for cannabis entrepreneurs seeking to promote retail products and engage consumers in Minnesota’s adult-use cannabis market. 

What the Cannabis Organizer License Allows

All cannabis event activity requires prior local government approval and must comply with Minnesota Statutes and rules set by the Minnesota Office of Cannabis Management (OCM). Once approved, license-holders are given a number of allowances by the state:

1) Multi-Day Events

The Cannabis Event Organizer license allows the holder to host 21+ cannabis events for up to four consecutive days.

2) In-Event Activities/Features

• Retail Cannabis Sales – Adult-use cannabis, cannabis plants, concentrates, edibles, and hemp-derived products by licensed vendors. 
• On-site Cannabis Consumption – If explicitly approved by the local government. 
• Cannabis Display Samples – One labeled, secured sample per product. 
• Free Cannabis Product Samples – Under strict limitations. 
• Free Promotional Items – Merchandise or paraphernalia). 
• Admission Fees – For attendees and flat booth fees for vendors.

Cannabis Licenses Allowed Concurrently

The Cannabis Event Organizer license can be held alongside any other Minnesota cannabis license, including: 

• Microbusiness 
• Mezzobusiness 
• Cultivator 
• Manufacturer 
• Retailer 
• Wholesaler 
• Transporter 
• Delivery service 

Who Can Sell Cannabis At Events

Only state-licensed Minnesota cannabis businesses may sell or distribute cannabis or hemp products at an event. This includes at least one of four license types:

1. Cannabis Retailers (Dispensaries)
2. Microbusinesses or Mezzobusinesses – Only with a retail operations endorsement
3. Medical Cannabis Combination Businesses – Only with a retail location
4. Licensed Lower-Potency Hemp Edible (LPHE) Retailers

Cannabis Event Rules and Restrictions For Organizers

Admission and Length

• Event Duration – Events may last up to 4 consecutive days. 
• Admission/Booth Fees – Allowed only as flat rates—not based on vendor sales. 
• Age Limit – Events are strictly 21+. 
• No Alcohol or Tobacco Allowed – These are strictly prohibited at cannabis events. 
• Consumption Areas – Must be enclosed, not visible to the public, and approved by local authorities. 

Sample Cannabis Product Distribution

Licensed retailers, microbusinesses and mezzobusinesses (with retail endorsements), LPHE retailers, and qualifying medical cannabis businesses may offer limited cannabis product samples, with Metrc tracking and proper labeling: 

• Up to 1g of flower or concentrate
• Up to 10mg THC per cannabis edible
• Up to 5mg THC or 100mg of other cannabinoids per LPHE sample

Samples may not be given to visibly intoxicated individuals. 

Local Minnesota Government Approval 

Before applying for a license, organizers must obtain written approval from the local Minnesota jurisdiction where the cannabis event will be held. This includes a form provided by OCM with: 

1. Event name, date, and time 
2. Anticipated attendance 
3. Main point of contact 

If event details change after approval (except for vendor list updates), the applicant must reapply with a new local approval and pay the event application fees again.

Cannabis Organizer License Application Process

Application Start and Stop Time

The Minnesota OCM will begin accepting applications for the Cannabis Event Organizer license on August 1, 2025, via the Accela portal. License applications are accepted on a rolling basis, but must be submitted at least 30 days before the event. Submissions received late will not be accepted. 

License Application Fees

• Application Fee – $750 (nonrefundable) 
• Initial License Fee – $750 

Projected Required Application Materials

1. Local government approval
2. Site, security, and operations plan
3. Event diagram
4. Vendor list -All cannabis/hemp vendors must be licensed by OCM or LPHE. Updates must be submitted at least 72 hours before the event.
5. Cannabis Business Plan
6. Standard Operating Procedures (SOPs) covering:
   1. Security plan and ID verification
   2. Quality Assurance
   3. Inventory control and diversion prevention
   4. Tax compliance and accounting
   5. Employee training

Application Review & Cannabis License Approval Steps 

1. Initial review – OCM checks the application for completeness.
2. Requests for information – If incomplete, the applicant has 14 days to provide updates.
3. Background check and labor peace agreement attestation
4. Pre-license phone inspection to verify preparedness
5. License issuance, including notification to the local government
6. Optional vendor list update (submit 72+ hours prior)
7. On-site inspection (optional but possible at any licensed event)

Cannabis Event Compliance Requirements

Physical Site & Security

Event organizers must meet the following on-site compliance standards. Failure to follow any of these guidelines may result in fines, license revocation, or enforcement action. 

• Consumption areas must be enclosed with commercial-grade fencing and not visible to the public.
• Licensed security must be contracted based on expected attendance.
• ID checks at all points of entry to ensure all participants are 21+.
• Secure product storage for all cannabis/hemp inventory.
• Cannabis waste must be disposed of properly.
• Cannabis transport to/from the event must be by a licensed transporter.
• Sales must be recorded in Metrc at the end of each day.
• Retail zones must be clearly marked.
• Required signage must be displayed prominently.

Prohibited Activities

The following are strictly prohibited at cannabis events: 

• Charging vendors based on sales revenue
• Admitting individuals under 21
• Selling or giving products to visibly intoxicated individuals
• Selling more than legal possession limits
• Selling medical cannabis products
• Using vending machines or unattended kiosks
• Allowing alcohol or tobacco at the event
• Allowing cannabis smoking in areas restricted by the Minnesota Clean Indoor Air Act 
• Hosting events longer than four consecutive days

Host a Cannabis Event in Minnesota – With Some Help

The Cannabis Event Organizer license creates exciting opportunities for cannabis entrepreneurs to showcase products, engage consumers, and foster community—all within Minnesota’s regulated adult-use market. However, these events are highly regulated and require meticulous planning, especially around local approvals, vendor licensing, security, and Metrc compliance. 

By preparing thoroughly, following the licensing steps, and understanding both what’s allowed and what’s prohibited, you can host a successful and compliant cannabis event in Minnesota. 

Get Support Winning A License With Minnesota’s Top Cannabis Consultants

Start planning now if you’re targeting a fall or winter 2025 event. Local governments may have their own approval processes, so early outreach is essential. Canna Advisors is an expert team 0f Minnesota cannabis consultants, with decades of experience winning cannabis licenses both in the Midwest and nationally. For questions or licensing support, book an hourly consultation or contact us directly today.

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