How to Open a Dispensary in Michigan

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Michigan has a rather tumultuous history with legal cannabis. The state’s dispensary program was ended in spring of 2016, only to be reinstated later that year. Cannabis flower is not allowed in Michigan, only concentrates are allowed at this time. Here is everything you will need to know about starting a cannabis dispensary in Michigan.

Legalization in Michigan

The state’s first medical cannabis dispensary system was repealed by a court ruling in May of 2016. The new system was set up later that year in September by Governor Rick Snyder.

When was cannabis made legalWhen was cannabis made legal

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Until the newest system is drafted, patients or caregivers can still grow under what remains of the existing system. However, caregivers are limited to 5 patients. The new laws allow for extras like concentrates and topicals. The state has attempted to get recreational cannabis on the ballot, but the state abruptly narrowed the window to collect signatures for the ballot initiative.

How Many Dispensaries Operate in Michigan?

Dispenaries in Michigan are referred to as “Provisioning Centers.” As the state is still working on the new legislature, specific regulations for different types of businesses are likely to occur in the future. Michigan law only allows application delays to take place 360 days from September 15, 2017.

What is Michigan’s Cannabis Market Worth?

Projected medical cannabis sales for 2021 are expected to reach 626.6 million dollars. If adult use aka recreational cannabis were to be legalized, that could lead to more than 939.1 million in total, or almost one billion dollars.

How much money is there in the dispensary market

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Dispensary Owner’s Requirements

Applicants are also required to have a detailed business plan and know all of the rules and regulations for running a cannabis business. Again, you should make sure that you are not only familiar with all of your local laws, but also all of the ins and outs of running a cannabis dispensary. You should of course have a business plan ready and be prepared to run your business for a minimum of 2 years. Appliicants with some business background are more likely to be considered than those without.

Licensing Requirements

When it comes to starting a dispensary in Michigan, location is everything. This is because individual townships are allowed to decide how many dispensaries are allowed to operate, or if they even want to have any there at all. As always, pay attention to your local laws, as well as the local news to determine if you should even set up shop in your desired location. You must also be able to provide a detailed plan for how you plan to track all of your inventory. You must of course have provisions for testing and packaging your products as well.

 Dispensary Licenses Available in Michigan

The Michigan cannabis dispensary license is one of four “marihuana” licenses available. This license is known as a provisioning center license. According to Michigan state law, a provisioning center is “A commercial entity located in this state that purchases marihuana from a grower or processor and sells, supplies, or provides marihuana to registered qualifying patients, directly or through the patients’ registered primary caregivers. Provisioning center includes any commercial property where marihuana is sold at retail to registered qualifying patients or registered primary caregivers.”


All things considered, applicants should allow more than a year for you to get things off the ground and running. First you need to get approval from your city council. You also have to of course make sure that you have all of the necessary funds and all your other affiars in order.

 Consulting Companies

The following firms can help you with everything you need to know to open a dispensary in Michigan.


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