New Jersey Opens Cannabis Consumption Area Endorsements to All Class 5 Retailers

By Brandon Kurtzman, Lauren Mendelsohn

Jul 29, 2025

New Jersey has been at the forefront of cannabis licensing on the East Coast, rolling out their program more quickly and thoroughly than many other states while also borrowing ideas such as consumption lounges and social equity licenses from states with more mature programs.

As of July 2, 2025, the New Jersey Cannabis Regulatory Commission (CRC) is now accepting cannabis consumption area endorsement applications from all licensed Class 5 cannabis retailers and permitted medical cannabis dispensaries. This follows a phased rollout that began earlier in the year, with applications initially limited to Equity-owned businesses starting January 2, 2025, and Diversely Owned businesses as of April 2, 2025.

Eligibility Criteria

Entities must hold either a Class 5 cannabis retailer license or a medical cannabis dispensary permit to apply. Applicants must also obtain municipal approval prior to submitting an application. Each operator is limited to one consumption area endorsement, regardless of how many retail licenses they hold.

Application Fees and Ongoing Costs

Application Fee: $1,000
Annual License Fee:
- $1,000 for microbusinesses
- $5,000 for standard businesses

Applications are submitted through the CRC licensing portal and are accepted on a rolling basis. All proposed consumption areas must pass a final inspection prior to operation.

Required Documentation

Applicants must submit the following materials:

Proof of municipal approval
Floor plans for the proposed consumption area
A business and operations plan, including ventilation and odor control strategies
Standard Operating Procedures (SOPs) covering:
- On-site cannabis consumption protocols
- Age verification and access restrictions
- Security, sanitation, emergency response, and waste disposal
A notarized attestation affirming the accuracy of all submitted materials

Incomplete applications or missing documentation may result in delays or denial.

Key Considerations for Applicants

Operators should be aware of the following common issues that may impact the success of their application:

Submitting an application prior to the eligibility window
Failing to secure municipal approval
Inadequate ventilation or space planning
Unclear or incomplete SOPs
Unpaid application fees

The CRC has published a full set of rules and requirements for consumption lounges.

Frequently Asked Questions (FAQ)

What is a cannabis consumption area endorsement in New Jersey?

It is an endorsement to an existing Class 5 retail license (or medical dispensary permit) that allows on-site consumption of cannabis at a licensed location.

Can a microbusiness apply for a consumption area endorsement?

Yes. Licensed microbusinesses are eligible to apply and pay a reduced annual licensing fee.

Is municipal approval required?

Yes. Local approval must be obtained and submitted with the application.

How many endorsements can one business hold?

Only one consumption area endorsement is permitted per entity, regardless of the number of retail licenses held.

When will my application be reviewed?

Applications are reviewed on a rolling basis based on eligibility tier and application completeness.

How Vicente LLP Can Help

Vicente LLP has deep experience supporting cannabis businesses throughout New Jersey’s licensing process. Our attorneys assist with every stage of the application, from preparing SOPs and municipal materials to ensuring compliance with CRC requirements and facilitating final inspections.

To discuss your eligibility or begin the application process, contact Vicente LLP to schedule a complimentary consultation with a member of our licensing and regulatory team.