What is a New York Adult-Use Processor Type 3 Branding License

Estimated reading time: 10 minutes

Overview

An Adult-Use Processor Type 3 Branding license holder (“brand licensee”) is authorized to market their brand(s) of cannabis product in New York State’s adult-use cannabis market. Pursuant to Section 123.5 of Title 9 of the New York Code Rules and Regulations (NYCRR) a processor may only enter into a branding or white labeling agreement with its true parties of interest, or another licensee provided that such licensee is not otherwise prohibited under New York Code Rules and Regulations (NYCRR).

This license type allows brand licensees to enter into white-labeling agreements without having to become a true party of interest in a New York State licensed adult-use processor or having to establish a processing facility in New York State. White labeling, for the Type 3 Brand License shall mean cannabis products processed, branded, and distributed by a licensed processor authorized for plant-touching activities for a brand licensee with whom they have an agreement, which may include adherence to a specified master manufacturing protocol for brand quality standards.

As a trusted New York Cannabis Consultant, we help brand licensees navigate these regulations to successfully launch and scale their presence in the market.

This license type authorizes the brand licensee to provide intellectual property (e.g. logos, product quality plans, etc.), non-cannabis ingredients (e.g. rolling papers, flavoring agents, etc.), equipment, and other materials (e.g. vaporizers) to another New York State licensed processor authorized for plant-touching activities with which the brand licensee has entered into a white labeling agreement. A brand licensee may, as part of a white labeling agreement, set certain standards that the processor must meet (e.g. regarding the quality of finished cannabis products or regarding the manufacturing processes used to make the cannabis products).

This license type does not authorize any cannabis plant touching activity, including but not limited to extracting, blending, infusing, packaging, labeling, and otherwise making or preparing cannabis products, and is solely to license New York State and out-of-state cannabis brands so they can partner with a New York State licensed processor who is authorized to conduct plant touching processing activities, to white label and manufacture their cannabis brand. All required recordkeeping for the production of any cannabis products (from the brand) must be maintained by a licensee who is authorized to conduct plant-touching activities.

All relationship restrictions that apply to a processor license, apply to a brand licensee, including but not limited to restrictions relating to undue influence, control, ownership, and true parties of interest. No processor, brand licensee, or its true party of interest, is permitted to have any direct or indirect interest, including by being a true party of interest, passive investor, or having a goods and services agreement with, or by any other means, in an adult-use retail dispensary, on-site consumption, delivery, a registered organization registered under article 3 of the Cannabis Law, or cannabis laboratory licensee or permittee. A brand licensee shall only conduct those activities specified on its application, whether on an initial or amended application, that have been approved by the Office of Cannabis Management (Office) for such processor. As experienced New York Cannabis Consulting professionals, we ensure that our clients remain compliant with these critical stipulations and avoid conflicts that could jeopardize licensure.

As with processors, brand licensees and true parties of interest are subject to all applicable laws, rules, regulations, and guidance. Failure to comply with any current or future laws, rules, regulations, or guidance issued by the Office may result in disciplinary action, including, but not limited to, revocation of the license.

Requirements for an Adult-Use Processor Type 3 Branding License

1. The applicant and anyone in the ownership structure must be 21 years of age or over.
2. The applicant must be a United States citizen, or a person lawfully admitted for permanent residence in the United States. A corporation that otherwise conforms to the requirements of the Cannabis Law may be licensed if each of its principal officers and more than one-half of its directors are citizens of the United States or persons lawfully admitted for permanent residence in the United States.
3. The applicant must provide a federal employee identification number (“FEIN”) or, if operating as a sole proprietor with no employees, a social security number may be used. (Need help obtaining an FEIN? A New York Cannabis Consultant can guide you.)
4. The applicant must provide name and contact information for all True Parties of Interest. What is a True Party of Interest?
5. The applicant must provide ownership, management, and financial information including organizational structure/ charts, capitalization tables/ ownership structures, and any proposed or existing sources of capital.
6. Payment of non-refundable Application Fee.

How to Apply for An Adult-Use Processor Type 3- Branding License

1. Schedule a complimentary consultation call with our New York Cannabis Consulting team to assist in preparing your application, required documentation, and diligence. The New York licensing process is highly competitive.
2. Review our New York state cannabis page and current Processor Type 3 opportunities before your scheduled consultation.
3. All applications must be submitted online through New York Business Express (NYBE). Our consultants will assist you in the online submittal process.
4. Sign in or create a NY.gov account.
5. Your application has a save and resume feature. It’s not required to complete it within one sitting. This is advantageous as our team has an ongoing collaboration with you to present the most complete and compelling online cannabis application.
6. After your application is fully submitted with all required documents, you can log in to NYBE at any time to monitor your application status.

Required Fees for 2025 Applicants

Payment Options

Credit card transactions are accepted up to a limit of $5000. For all transactions exceeding $5000, ACH will be the only accepted method of payment.

Fee Details

Application and license fees are reduced by 50% for qualified Social and Economic Equity (SEE) applicants. A New York Cannabis Consultant can help determine your eligibility for SEE status and assist in completing your application.

Find Assistance

Need support navigating New York’s complex cannabis licensing process? Catalyst BC’s expert consultants are here to help. From structuring your white-label agreement to submitting a fully compliant Type 3 Branding License application, we provide end-to-end cannabis consulting services that reduce your risk and maximize your opportunity.

Schedule your free consultation now to get tailored guidance on licensing, compliance, operational strategy, and more. Or, explore our New York Cannabis Consulting Services.

New York Adult-Use Processor Type 3 Branding License FAQs

Additional Information

• 2025 New York Adult-Use Processor Type 3 Branding Licenses Now Available
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