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How To Own A Licensed Dispensary In Michigan

How To Own A Licensed Dispensary In Michigan
How To Own A Licensed Dispensary In Michigan

The process to own a licensed dispensary in Michigan is a little longer for anyone who does not have a medical dispensary license. Michigan recently authorized the sale of adult-use recreational marijuana sales, and people called the recreational roll out a model that has what not to do. In that context, the Marijuana Regulatory Agency ruled that medical shops could change their license into recreational by December 1. 

That turn of events happened earlier than expected, resulting in an influx of sales and a shortage of supplies. In the first two weeks of opening shops, more than $3 million in sales were made. How can one own a dispensary to stock recreational marijuana in Michigan?

The Process

Before applying for a license, potential retailers must submit a prequalification application. That process looks at all background checks of everyone involved, and before applying for the permit, a compliant located must also be secured. Michigan charges a $6,000 non-refundable application fee.

The first licensure fee after the applicant is accepted stands at $25,000. On the other hand, the renewal fee is broken down according to the retailer’s placement. The bottom 33% pays $20,000 for renewal, the middle 33% pays $25,000, while the top 33% pays $30,000. Any applicant who qualifies for the social equity program may pay lower fees.

If an applicant was not already active in the Michigan marijuana industry before the adult-use sales, they must get a medical license before the recreational permit. That rule remains active for the first two years. 

Any applicant without a state operating license according to the MMFLA and is applying for any marijuana license under the act and set rules will be considered ineligible. These requirements are inactive until after December 6, 2021. Before applying, prospective retailers must have an appropriate location in a municipality that has not opted out.

Ann Arbor city in Michigan has no caps on licenses, which makes it a perfect place for potential businesses to come up. But, the cost of starting in Michigan is considerably high, comprising of application fees, renewal fees, and many other prerequisites. Also, a lot of money has to go into starting and maintaining a dispensary.

The industry has many opportunities only for the potential investors who navigate all the requirements successfully and expect the rules to change quite often.

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Robert Hill
Author

Robert is an editor-in-chief from Chicago, IL, with vast experience writing about the cannabis industry. He mainly focused on covering general cannabis news, political news, and cannabis crime news worldwide.

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