Key Factors to Consider When Establishing a Cannabis Dispensary in Michigan

Key Factors to Consider When Establishing a Cannabis Dispensary in Michigan

Posted by Toker Grace on Jan 7, 2020 9:36:19 AM

Cannabis continues to show a massive amount of promise for those looking to break into the industry. The cannabis industry is expected to generate over $200 billion in revenue over the next decade. With Michigan recently revamping its cannabis laws to include recreational cannabis in conjunction with their long-standing medicinal access, entrepreneurs are quickly getting into the industry. Here are a few important factors that potential cannabis business owners and operators ought to consider when establishing a successful as well as legally sound cannabis dispensary in Michigan.

Disclaimer: Cannabis laws vary from upon state. Although these key points are important when choosing to open a dispensary, This article is not legally-binding professional advice. Business owners, investors, and operators must acquire the appropriate legal counsel in the state of Michigan when considering opening a dispensary or obtaining a medical marijuana card.

Process of Obtaining a License in Michigan

The Marijuana Regulatory Agency, also known as the MRA, regulates Michigan’s medical marijuana facilities as well as licensees. This includes growers, transporters, processors, provisioning centers as well as facilities focusing on safety compliance following the Medical Marihuana Facilities Licensing Act set in 2016. There are three main licensing tiers in the state of Michigan:

Marijuana Grower License

The state of Michigan offers a Marijuana Grower License. This type of license allows entities to grow cannabis with an intent harvest, produce dry, trim, manicure as well as package cannabis in bulk for sale at a wholesale price to cannabis processor license holders as well as additional cannabis producer license holders. Moreover, a Marijuana Producer License also  allows the production and selling of the following cannabis-related products:

  • 1. Cannabis plants, seeds as well as plant matter and culture to other marijuana producer holders
  • 2. Immature cannabis plants or clones as well as cannabis seeds to members of a registered cooperating entity, qualifying marijuana patients, or listed cannabis providers;
  • 3. Immature cannabis plants or clones, as well as cannabis seeds to licensed cannabis researchers.

The application fee for obtaining this type of license is $250. This amount is refundable and applicable to all forms of marijuana licenses

Marijuana Processor License

The next type of license prospective business owners may be interested in obtaining in Michigan is the Marijuana Processor License. This type of license allows license holders to process, dry, manicure, label as well as package consumable cannabis, and cannabis concentrates, as well as cannabis-infused products intended for sale at wholesale value to additional marijuana processors as well as marijuana retailers.

Marijuana Transporter License

The last type of license available in Michigan is a unique form of license, known as is the Marijuana Transporter License. This type of license allows individuals to transport exclusively consumable cannabis, and cannabis concentrates, cannabis-infused products, cannabis equipage. One can also sell securable containers to store cannabis within the Michigan state limits to additional license holders.

Cannabis Purchasing Limits in Michigan

In December of 2019, Michigan sold its first bud of recreational cannabis. Adults who are ages 21 and over must adhere to daily purchasing limits. The current limits outlined by the board are:

  • 2½ ounces (70 grams) of dry cannabis flowers
  • 15 grams of cannabis concentrates

Most cannabis consumers will agree that is amount is more than enough for daily purchases.

Cannabis Businesses and Advertising

Similar to other items regulated by the MRA, there are advertising restrictions that proprietors must follow. This includes:

  • No advertising products within 1,000 feet of an elementary school
  • Coupons or sweepstakes for cannabis products are prohibited
  • Billboards are allowed but must include 21+ age restriction warning

Additional Cannabis Regulatory Information

Getting into the cannabis industry in the state of Michigan is a delicate process and requires a tightrope approach to prevent the revocation of licenses. Be sure to consult with the proper entities when advertising cannabis products.

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