Michigan Designated Consumption Establishment License
Expand Your Recreational or Medical Marijuana Business
Because recreational cannabis consumption was illegal in Michigan until 2018, when voters approved Proposition 1 and ended marijuana prohibition, the Marijuana Regulatory Agency (MRA) needed to take prompt action to create an appropriate regulatory structure for public cannabis consumption. By creating the Designated Consumption Establishment License, the MRA has authorized adults to consume marijuana and cannabis products in certain designated locations to avoid arrest by state officials.
If you are interested in acquiring a Designated Consumption Establishment License for your Michigan marijuana business, our experienced cannabis attorneys at Grewal Law PLLC would be happy to help you explore all the options. As an add-on for an existing Retailer or Microbusiness license, the Designated Consumption Establishment License may be able to help you expand your business and reach more customers.
What Is a Designated Consumption Establishment License?
A Designated Consumption Establishment is a license that permits the consumption of cannabis on commercial premises for adults age 21 and up. However, retail sales of marijuana are not permitted at a Designated Consumption Establishment. As a result, the Designated Consumption Establishment must be separate from a licensed Marijuana Retailer or Microbusiness. Ideally, they would be located in an adjoining suite.
Unique Challenges for Designated Consumption Establishments
Because Designated Consumption Establishments have such strict and specific regulations governing their retail sales, these businesses are likely to have a difficult time generating enough revenue to cover operating expenses as a standalone operation. These businesses also require additional security personnel to check IDs of all incoming patrons, as well as personnel, to ensure that patrons are not becoming overly intoxicated and are not selling cannabis on the premises.
However, adding a “designated consumption lounge” to an existing or prospective marijuana retail establishment or marijuana microbusiness provides a great value add for prospective customers—particularly if the designated consumption lounge is adjoining or connected to the retail operation. This configuration permits customers of the retail business to purchase their product and bring it with them over to the lounge for consumption.
This configuration would be similar to Amsterdam’s “coffee shops,” where you purchase cannabis in one part of the store and consume it in a separate area. Also, because the Marijuana Regulatory Agency permits the delivery of recreational cannabis to designated consumption lounges, patrons seated in the consumption lounge can order cannabis from the adjoining retail facility to be delivered to them at their table.
Contact Our Michigan Cannabis Law Team Today
If you’re interested in learning more about the application process for a Designated Consumption Establishment License in Michigan, contact the cannabis law attorneys at Grewal Law PLLC. The cannabis market presents a unique investment opportunity to be a part of a newly legalized industry with an already established customer base. Our cannabis law division is here to assist you with any questions that you may have to start your own licensed cannabis business.