ZA
A cannabis club, also known as a cannabis social club, private cannabis club, dagga private club, or marijuana social club, is a private, membership-based organisation where individuals can gather to consume cannabis in a social setting. The "club" is sometimes structured as a non-profit formed by people who usually consume cannabis for recreational use.
The business model differs across the world, depending on local laws. For example, we don't (yet) have the concept of "dispensing licenses," so entrepreneurs are working within the "constitutional right to privacy" or at least skirting around it. In South Africa, the courts affirmed the right to privacy, which allowed adults to cultivate and consume cannabis in a private space.
The judgement did not legalise the sale of dagga but has opened the door to a lot of grey area operators who structure dagga selling as "private clubs," where people partake in cultivating and consuming dagga for their personal use.
The judgement also created a market for legal consultancies on how to navigate this legalisation. Some people have just gone full rogue and just opened shops selling the stuff. A position that I have long supported (along with the cultivation of magic mushrooms).
Whilst government drags its feet with implementing Cannabis
- Fields of Green for All
laws in South Africa, it has not stopped the Cannabis community
from disobeying bad laws by opening Dagga Private Clubs (DPC’s),
with more and more clubs sprouting up across the country, some
operate blatantly in full view of the public, whilst others much
more clandestine and PRIVATE.
However, it must be noted that the police, despite being burdened with world-record murder and rape cases, are still actively prosecuting dagga cases. And whatever you decide to do, you bear the full consequences of your actions. Some people don't have a problem subverting a colonial law under a dispensation that is committing worse crimes.
The critical element in whether you walk away
or you're there to stay is have you stashed enough money
to pay my fee?
- Lawyer in Kid Cannabis
I am not a lawyer, and I'm not going to be telling you how to navigate the law. Instead, I will give you my experience of visiting a cannabis club in Cape Town that failed (not due to legal issues), the model it used, and why it failed (they are probably going to blame COVID-19, but I think it is because they did not have a compulsory membership fee for members).
Legal Structure
People have been setting up NGO's or cooperatives to "house" their cannabis clubs. Cynically, this is more of a smoke screen than anything else, as it does not provide a cover for illegal behaviour. Even though these organisations like companies, are seen as legal entities or legal personalities and offer limited liability to their members, they are not the company standing on the corner selling weed. You should probably consult a lawyer as per the best legal structure (although a lot appear to be winging it). The place I went to was just a normal shop; I do not know their status, and I do not even know if the shop was a registered business (the building belonged to the owner's father, apparently).
Business Model
To remain sustainable, a cannabis club must adopt a business model similar to that of a gym. You must pay a monthly membership fee, whether or not you attend. You cannot just have a fee at the door like a normal club. A cannabis club is not widely advertised or promoted, and not everyone attends every week, but the club will have fixed costs (rent, water, electricity, staff, etc.).
So if you have 100 members and have operational costs of R12000 per month, then it is only fair that each person pay R120 a month or R30 per week to keep the place open where they come and enjoy smoking their weed in a social setting. The cost at the door can then be R50 for non-members.
There was a cash bar (although I don't know if they had a liquor licence) and there were Rastafarians selling coffee (no idea if it was CBD-infused), edibles, and a kitchen. That's all I remember. I don't recall if any paraphernalia or rolling papers were sold (although you could probably get there).
In my opinion, the club should rent out the trading spaces for a weekly or monthly fee (or even based on commission, to be really fair) and not sell anything itself. The kitchen can also be rented out. As for the bar, that is usually the most lucrative and should probably be kept in-house. But the question is, should it even be marketed as a "cannabis club"? Why not just have a "lounge" with a smoking section where you allow people to smoke weed? That will be easier to market.
The thing is, not everyone is following a "framework" such as those suggested by some experts, and what constitutes a cannabis club is not set instone.e That is because some people are disregarding the law completely (when I was at the club in Cape Town, they were speaking about police coming to another club where they were making cannabis pizza, but in a nicer neighbourhood and they were nonplussed about the authorities showing up).
However, we have not discussed the elephant in the room. Can you buy or sell cannabis in the club? Many of the grey-area clubs are selling and maybe calling it a "donation," or you can all share a grow area that will cost over and above membership. All I can say is this: You cannot expect people to go elsewhere to buy. Yes, you can say "bring your own," but to expect people to go out and sometimes to dodgy areas to buy obviously makes no sense.
In addition to that, cannabis clubs may offer a variety of amenities and services to their members, including:
Socialising areas: Spaces where members can gather, relax, and socialise while consuming cannabis.
Consumption methods: Facilities for consuming cannabis, which may include smoking lounges, vaporizer stations, or areas for edibles consumption.
Events and activities: Some cannabis clubs host events, workshops, or activities related to cannabis culture, education, or advocacy.
