How do I add a caregiver or change to a different caregiver? Having said that, when representing buyers, this is generally one of the first questions they ask. Can a microbusiness obtain plants from a caregiver? Will CRA contact me after my Annual Financial Statement (AFS) report is submitted? A marijuana establishment can apply for a license as a designated consumption site. If anyone could give me a run down of everything that goes into the process of selling into dispensaries, it would be greatly appreciated. In 2018 and early 2019, dispensaries would essentially sell themselves. Convenience and Clarity Matters to Gen X. One thing that the pandemic did was give us all a lot of time in the kitchen. My business is developing an in-field THC testing kit, and we will collect hemp samples to test the efficacy of the kit. Where the applicant will identify the specific facility for which they are applying (grower, processor, provisioning center, safety compliance facility, or secure transporter) in the Facility License Application (FLA), and provide information and supporting documentation specific to the license sought. Class A is a Grower license for 100 marijuana plants, Class B is a Grower license for 500 marijuana plants, and, Allows applicants to begin the application process while still seeking a location for the proposed marijuana facility, It starts by filing an Entity/Individual Pre-qualification Packet. How much is the fee? July 2, 2020 Jordyn Pair. This article will go over many of the factors aside from general location that affect the overall sale price, as well as some data-based tips to best position your dispensary on the cannabis real estate market, whether it is an MMFLA provisioning center, legal MRTMA retailer, or both. To sell marijuana to any person. They could go from license application requirements, to the local-wide limit of accepted number of dispensaries in the zone. Can a municipality exclude certain types of marijuana establishments? Transfers of product between my licenses are not recorded as revenue in my general ledger. Click the link to find out more on how to get an MMFLA or MRTMA license. Check the State of Michigan Career Portal for a list of current openings in Michigan government. Recreational cannabis will be subject to a 15 percent excise tax on top of the standard sales tax. The buyer, on the other hand, saved half a million in upfront costs, which they could use to fully stock the inventory and for working capital. Take a close look at the Certificate of Analysis (COA) to verify it is in fact for the product you intend to buy, and not some other stage of the process (for example, a COA from the hemp crop pre-harvest). MRAs adult-use marijuana application page. Can delivery occur in municipalities that have opted out? The adult-use market launched on Dec. 1, 2019. The market for Michigan dispensaries has been incredibly cyclical. Please use these updated forms for all requests. However, specific amounts are carryable depending on where you are. There are new developments in the security sector that are offering dispensaries piece-of-mind. Can a temporary marijuana event be held overnight? As a processor or a grower, if I hire a caregiver, may I transfer their marijuana into my company? Adults aged 21 and up may possess up to 2.5 ounces of cannabis or equivalent product away from home, and up to 10 ounces within their home. The act allows adults of 21 years and older to possess up to: 2.5 ounces of cannabis flower in public, or 10 ounces at home. Applying for a New York Cannabis License The Office of Cannabis Management Cannabis Control Board (CCB) of New York has applications for cannabis adult use, Are you an ambitious entrepreneur looking to get involved in the cannabis industry? What should I do? It is required by many municipalities before even applying for a local permit. The good thing about applying for a cannabis license in Michigan is that, contrary to many other states in the United States, it does not have a statewide limit for the number of licenses approved neither for medical marijuana businesses nor for adult-use businesses. Moreover, municipalities that had previously opted not to participate in legal marijuana will now have an opportunity to allow recreational cannabis. Medical and recreational marijuana cannabis dispensaries usually operate with an average net profit margin between 15 and 21 percent after accounting for taxes. If applying for more than one facility license, a separate FLA will need to be completed. Will I need a physical location for my business, or can I use my personal address until I find a location? How do I file an amendment for both Medical and Adult-Use marijuana licenses? The term provisioning center includes any commercial property where marihuana is sold at retail to registered qualifying patients or registered primary caregivers. For now, there are only medical dispensaries available to [] This packet must include a passport-type photo, a copy of your government-issued ID, and all other supporting documentation, It encompasses a full background investigation of the applicant and all supplemental applicants. The list of conditions that qualify for medical marijuana in Michigan can be found here. Youll be required to provide the same information you submitted during the pre-qualification phase, with information regarding the municipality in which youll operate. Is the lab conducting the testing have any accreditations? Can I have more than one marijuana microbusiness? Since this Gen X is the busiest generation of cannabis consumers, the most successful way to market your cannabis dispensary to this demographic is to add convenience to their purchase journey. I purchased a licensed entity. When does a patient registry identification card expire? And they will need to be renewed annually, which includes a fee of a similar amount. Licensed to practice since 2008, Thomas Howard has represented numerous financial institutions in litigation to enforce their security interests. In November 2018, Michigan dispensary laws changed when voters approved the Regulation and Taxation of Marijuana Act, making the Great Lake State the 10th in the U.S. to legalize recreational cannabis. Our clientele is comprised of seasoned entrepreneurs and industry veterans who are searching for cannabis real estate opportunities. Adult-use marijuana was approved by Michigan voters in November 2018, meaning adults aged 21 and older are legally allowed to purchase, possess, and consume cannabis. For retailers is $25.000 for new licences, while for provisioning centers is $44.000. Gretchen Whitmer on Wednesday. We know Detroit is looking to go adult-use, but the city cant seem to get out of its own way. Can someone else sign and date the application if the applicant is mentally or physically incapacitated? Weve won licenses in competitive limited markets, and open market states. The total fees range from $4000 to $40,000 depending on the class you are applying for. Detroit may not see its first recreational dispensaryuntil 2022 or possibly later. Many dispensaries have edibles and other Marijuana processed products on shelves that customers can walk up to and inspect. Yes, a marijuana establishment in Michigan can sell both medical marijuana and adult-use recreational cannabis, provided those products are physically separated in the store. If a wholesaler, distributor, or retailer wishes to sell topical lotions or tinctures with CBD (and less than 0.3% THC with no health claims, nutritional/caloric values), do they have to possess a processor-handler license? I am a licensee with multiple licenses that does not track all disbursements by license type, so some of the disbursements made cover more than one license that I hold. While seller financing is not for everyoneand sellers need to make sure they have well drafted legal documents protecting their interestsit can be a good strategy to get a higher sales price. Put another way, thats about 35% more money in the sellers pocket compared to a straight cash out offer. How do I remove my current caregiver? It is illegal to use cannabis in a public place, such as on the street or at the park. Unlicensed sale of any amount of marijuana is a felony. License fees in Michigan could go from $4,000 (the grower class A license), up to $40,000. Friend has his own grow op and wants me to be an outside sales rep trying to get product into dispensaries (when covid blows over obviously). Check back frequently as the landscape is evolving daily . There are many ways to drive additional revenue as a cannabis business as well as increase total EBIDTA, including those that do not eat into your margins. Can I apply for a state operating license if I have a medical marijuana card? There are two fees associated with the adult-use marijuana retail license in Michigan. Retail Innovation Labs LLC Trading as Cova Software. But, from March 2021, Michigan will start accepting applications for recreational cannabis licensing opportunities from entrepreneurs who did not previously hold medical marijuana licenses. Launch our Search utility. The beginning costs of a Michigan marijuana growing license includes a non-refundable application fee, as well as a regulatory assessment. Since the consultants we work with tend to do a lot of business with the bigger Michigan cannabis brands, oftentimes we find that they can help negotiate lower wholesale prices for these products, which can improve both revenueandmargin. How much does it cost to open a dispensary? What this means is that these companies, and many larger private companies, value dispensaries strictly on revenue or sometimes EBIDTA multiples. According to Marijuana Business Daily's Marijuana Business Factbook, the average marijuana dispensary makes $974 in revenue per square foot of space. The Michigan Marijuana Regulatory Agency, or MRA for short. If you grow hemp and want to sell harvested hemp to a licensed hemp or marijuana processor, you may do so under your grower registration. Fortunately, the market has picked back up, as many of the larger Michigan vertical companies are buying once again, and out-of-state MSOs are beginning to discover the largely untapped Michigan market. Marijuana Misdemeanors. Do I still need to report this on Schedule of Expenditures Service Vendors? It is always best if renewal paperwork is received by the department as one complete packet. To renew your expired processor-handler license, you are required to submit your completed renewal application, along with the license renewal fee, and all required documentation. You're taking their product and benefitting from it - again, a question for an attorney as this is out of CRA's regulatory authority. These establishments may not serve food or alcohol. The Cannabis Regulatory Agency will establish Michigan as the national model for a regulatory program that stimulates business growth while preserving safe consumer access to cannabis. Can I send it in now? Only dispensaries with a designated consumption site license can have smoking lounges or otherwise allow consumption of marijuana products on-site. How should those disbursements be reported on the P3 Schedule of Disbursements? How do I update my name on my registry card? An overview of the medical and recreational marijuana laws in Michigan. This one year old industry has annual cannabis-related sales estimated at $730 million to $875 million only in 2020, and the estimations for the following years dont disappoint either. Not only that, but the interest rates offered by sellers tend to be a lot less than the interest rates offered by private lenders in the industry, which currently hover around 12%. Several Michigan dispensaries have been sued for sending out text messages under the TCPA. The state tax requirements in medical marijuana in Michigan is 6% sales and use tax. In addition to medical marijuana dispensaries, beginning January 1, 2020, recreational dispensaries will also be allowed to apply for licenses to sell adult-use cannabis to the public. Ensure that you mention precisely the cannabis product that you want to sell and its properties. I have a hemp license under the industrial hemp program. Having looked at demographics and traffic pattern data, I estimated the location would sell for about $3M to $3.5M on the Michigan cannabis real estate market. Other strains include; Strawberry Guava at $45, Mint Chocolate Chip Cookies . What authority does a municipality have in the marijuana industry? The application fees are around $6,000. Check CRA's website periodically as PA 547 of 2014, as amended, may be updated, and there may be additional requirements such as labeling for hemp products. What do I do? The Cannabis Regulatory Agency will establish Michigan as the national model for a regulatory program that stimulates business growth while preserving safe consumer access to cannabis. The second fee is an annual regulatory assessment, which must be paid prior to the license being issued. The second step includes a review of the proposed retail establishment, including a physical inspection, as well as payment of the licensure fee once approved. Feminized Seeds Growing Cannabis Seeds in Michigan For the most part growing cannabis seeds is easy. o Michigan.gov/IndustrialHemp (main page) How do I renew my registry identification card? When filing an amendment should the entity's operating agreement/bylaws be signed? How do I update my name on my registry card? Youll have to pay a nonrefundable fee of $6000 at the time of filing to defray the costs associated with the background investigations and fingerprint processing. As the #1 place to buy marijuana seeds in Michigan, Pacific Seed Banks is proud to bring you top quality, fully feminized cannabis seeds. Do such products need to be registered? Do I have to provide proof of my Michigan residency when I renew my registry identification card? Dont be one of them. Initially, it was announced that for the first 24 months, applications would only be accepted from currently licensed medical marijuana operators. Do companies need liability insurance to obtain a Processor-Handler License? Do I have to designate a primary caregiver? To get a provisioning center or retailer license in Michigan the application fee is $6.000. RELATED POST: HOW TO GET A GROWERS LICENSE IN MICHIGAN, A marijuana provisioning center is defined under Michigan law asa licensee that is a commercial entity that purchases marihuana from a grower or processor and sells, supplies, or provides marihuana to registered qualifying patients or registered primary caregivers. Report to Metrc manually With this method, data is exported from your cannabis point of sale software via a CSV file, configured to correct formatting, and then uploaded manually to Metrc. Usually, seller financing is a verified win-win for both buyers and seller. Michigan's MRA began accepting adult-use cannabis facility license applications on November 1, 2019 only from persons currently holding a medical marijuana operating license. All cannabis businesses help pay the $500,000 annual fee for substance abuse disorder programs ( MMFLA Section 333.27603) Licensing fees cost between $10,000 and $66,000. From medical dispensaries to the upcoming recreational stores, and even a 420-friendly doctor to help you serve your medical needs, you can find it all here. mixture of the right knowledge and legal experience, Land contracts and mortgages back to the seller are shockingly common, Choosing the Right Location for Your Cannabis Business, How to Sell Your Dispensary for Top Dollar, How To Make Your Cannabis Property Listing More Attractive: ATTACHING MUNICIPAL PERMITS. Usually, an established dispensary will start to develop relationships with different producers and growers. Think of selling to a dispensary as you would with any product to a store. Can you provide some information on event licensing? The Department of Licensing and Regulatory Affairs has great diversity of licenses and regulation within its oversight. But with the industry growing as fast as the medical and recreational cannabis industry in this legalized midwest state, the results of getting a license may be worth it. That's especially so in states like California, where recreational cannabis recently became legal. Michigan restaurants and bars will now be allowed to sell to-go alcoholic beverages, thanks to a new package of bills signed by Gov. In an industry that is constantly changing, adapting quickly to take advantage of new opportunities and facing potential challenges that come with the territory will determine if youll have a successful business or not. If you were to look just at data for comparable sales of dispensaries, it may be hard to make heads or tails out of the sales prices. Marijuana retailers in Michigan may sell cannabis and cannabis products including flower, concentrates, edibles, infused products, seeds, and clones. Point-of-sale software such as IndicaOnline has maximum-security data . It is the dispensary's job to identify the best products for their target market, which requires communication with grow ops, product samples, laboratory testing and more. As a matter of fact, we find many public cannabis business do not actually make a profit,with a handful of exceptions. Also note, the business receiving the cleaned seeds is also involved in the processing aspect and would require a processor-handler license. For an adult-use marijuana retail store you should apply for a retailer license that allows you to sell marijuana and other marijuana products, including plants and seedlings. Does the address on my application have to match the address on my Michigan driver license or personal identification card? The state, If you have been arrested for driving under the influence of cannabis in Illinois, you need to contact an Illinois cannabis DUI attorney as soon, Copyright 2023 | All rights Reserved Of course, not everything is as clear cut as the above example given the wide variance of municipal restrictions on the cannabis real estate industry. Below, weve provided answers to as many questions as possible concerning cannabis retail licensing and dispensary laws in Michigan, and we will continue to update this page regularly as new details emerge. With savings accounts yielding less than 1%, getting a higher purchase price along with a 6% interest rate of return can be very attractive. To be a Rec grower here you have to have your location approved, cameras and security system. Please note, depending on the industrial hemp product you intend to sell, there may be additional requirements for you to follow. Location requirements also prohibit cannabis operations located within an area zoned exclusively for residential use and not within 1,000 feet of a pre-existing public or private school providing education in kindergarten or any of grades 1 through 12, unless a municipality adopts an ordinance that reduces this distance requirement.