New Jersey’s adult-use cannabis system separates businesses into specific license classes to maintain a clear supply chain and regulatory structure. Two of the most frequently compared licenses are Class 5 (Retail) and Class 6 (Delivery). Although both put cannabis into consumers’ hands, they function very differently under NJCRC regulations.
Class 5: Cannabis Retail License
A Class 5 Retail license authorizes a business to operate a physical storefront where cannabis and cannabis products are sold directly to consumers. Retailers source their inventory from licensed cultivators, manufacturers, or wholesalers, and they serve as the final point of sale in the state’s regulated supply chain.
Class 5 retailers must:
- Maintain a licensed, NJCRC-approved storefront open to the public.
- Follow strict operational requirements, including security plans, ID verification, labeling rules, and consumer safety protocols.
- Renew their license annually and maintain compliance with all reporting, tracking, and taxation requirements.
Retailers are also permitted to offer home delivery only if they receive NJCRC approval or work with a licensed delivery service. Delivery performed by a retailer must follow the same tracking, vehicle security, and verification rules that apply to standalone delivery licensees.
Class 6: Cannabis Delivery License
A Class 6 Delivery license is designed for businesses that transport cannabis products from a licensed retailer to a consumer’s home. Delivery services are comparable to third-party courier platforms: they do not act as dispensaries and do not maintain a public storefront.
A Class 6 license allows a business to:
- Pick up consumer orders from licensed retailers and deliver those orders directly to the purchaser.
- Accept orders from customers, transmit those orders to a retailer for fulfillment, and then complete the delivery.
- Operate as a dedicated logistics provider without needing to purchase, store, or independently sell cannabis products.
Class 6 operators must follow NJCRC security and transportation protocols, including vehicle tracking, secure storage compartments, two-employee delivery teams (unless otherwise approved), and strict ID verification at the point of delivery. Vehicles must also follow state-mandated manifest and record-keeping rules.
Key Differences Between Class 5 and Class 6
Business Function
- Class 5: Sells cannabis in a physical retail environment and controls product selection, pricing, and consumer experience.
- Class 6: Delivers cannabis that consumers have purchased from licensed retailers, functioning strictly as a courier or logistics service.
Product Control
- Retailers handle inventory, marketing, merchandising, and overall sales operations.
- Delivery licensees do not hold inventory aside from products already purchased by a specific consumer.
Revenue Model
- Class 5 businesses earn revenue from product sales, add-on services, and in-store promotions.
- Class 6 businesses generate revenue through delivery fees or contracted logistic services for multiple retailers (where local ordinances allow).
Local Regulation
Municipalities may impose additional conditions on either license, including zoning restrictions, operating hours, caps on license numbers, or property-specific rules—meaning a Class 6 operator in one town may face requirements that differ from another.
Choosing the Right License
Entrepreneurs seeking a customer-facing business, in-store branding opportunities, and control over the retail experience typically pursue a Class 5 Retail license. Those who prefer a lower-overhead, service-driven model focused on transportation and order facilitation often consider a Class 6 Delivery license.
Because rules and municipal ordinances frequently evolve, prospective operators should consult the latest NJCRC guidance and local regulatory requirements before applying.