When recreational cannabis became legal in Massachusetts in 2016, the state imposed strict limits on how big any given retailer could be. The thinking went that capping the number of dispensaries any single business could own at three would keep large retail chains from dominating the weed market, leaving more opportunities for entrepreneurs in communities battered by the war on drugs to attain generational wealth.
Now there is talk of relaxing that limit. And it has sparked unprecedented tension within the industry.
Now the cap debateis one focus of a new cannabis trade group of small business owners, called the Massachusetts Cannabis Equity Council. Launched in mid-June, the 17-member coalition opposes changes to the license limits. But the council is as much about pushing other pending reforms, such as updating who can sell medical marijuana, as it is about the cap, said Kevin Gilnack, a founding member.
“The license cap is an existential threat,” Gilnack said. “But any time it’s getting attention, it’s taking oxygen away from addressing all these other incremental pieces that could have outsized impact for equity businesses.”