In Michigan, Medical Marijuana is legal. It is a commercial medical industry but getting into it will definitely cost you some money. However it is not as bad as you may think because every worthwhile business has its costs and Medical Marijuana is no exception. For starters, the most important thing for those who wish to open up a medical marijuana Provisioning Center (Dispensary) is to know the expected costs upfront before you plunge yourself into the business.

Knowing what it will cost you upfront presents you with a sneak preview of what to expect once you embark on this endeavor. This article is for you if you are the kind of person who is thinking of where to start.

Having a sound business plan and knowing how to execute it is where the bulk stops and without it you are on gods mercies. We will be dealing with costs based on averages meaning that the cost may rise or fall in respect to a variety of factors. More so the costs for those who buy their inventory in wholesale are lower than for those who buy them in retail. Down below we are going to break down in detail what constitutes the costs of opening a medical marijuana Provisioning Center (Dispensary) in Michigan.

Acquisition of premise and build out

This is the largest expense not only for a marijuana Provisioning Center (Dispensary) but for all other businesses. Whether you are acquiring a premise or leasing, either way the cost is significantly high. Leasing a premise is a cheaper option than acquiring the property in short term but it is highly recommended that you acquire the premise. The property owner will always have the advantage because the license runs on the property and if the owner is the still license holder, then he has himself good value for money.

Licensing fees and application

Before obtaining the necessary licensing you have to pay the application fee first. There are municipal as well as state licensing fees required, expect an application fee of around 5,000 USD and once it is accepted you will pay a licensing fee of between 10,000 – 15,000 USD.

Professional fees

There are a few professionals you will have to consult before your business is up and running. You will need a Michigan attorney for municipal lobbying, licensing and compliance. You will also need; bookkeepers, an architect who will perform all required site plans and a business consultant. There are also standard operating procedures which will need to be written, waste management plans, inventory and security plans as well as documents of the business entity such as management agreements.


You will renew your insurance yearly and the costs of casualty insurance will depend on the exact location of the business as well as the size of the business. However you should expect higher premiums based on the risky nature of any marijuana business. It is also very important for you to have a policy for product liability.

Cost of equipments

This is a no brainer, any business does need equipments to run. Equipments come in a wide range from office furniture, display jars, scales, furniture for the waiting room, display cases, computer systems among others.


Due to the sensitivity of the medical marijuana business, you have to incur a significant cost and invest in security and surveillance. Although it is a huge expense it is a necessary one because it is mandated and regulated by the state. You should have a security system which is online and in sync with the Department of Licensing and Regulatory Affairs. The enforcement authority of marijuana must have around -the -clock access at your camera live feed in some certain areas of your premise. For security and surveillance you should consider investing an upward sum of 20,000 USD or above.

Employee salaries

This is a significant and upfront cost you will have to incur. We all know that there is not a single business which in its infancy makes an immediate profit hence the need for the owner to set aside a significant sum of money to cater for this expense hitherto. Employees must be paid and can’t wait until the business starts making profit for them to get paid. For a middle level Michigan medical marijuana business you should consider setting aside a minimum of 60,000 USD to cater for around three months of employees and managers salaries.

In conclusion, you should expect an initial start up cost of between 400,000 USD and 500,000 USD. This should cater for most, if not all, of the expenses.


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