Last verified: March 2026

Michigan's Cannabis Regulatory Agency (CRA) administers 20+ distinct license types across both the adult-use program (under the MRTMA) and the medical program (under the MMFLA). Each license type has its own plant limits, operational scope, and annual fees. All license types require a $3,000 nonrefundable prequalification application fee before the annual license fee.

License Fees at a Glance

The following table covers the primary adult-use license types. Medical license categories largely mirror these with similar fee structures.

Grower Licenses (Class A, B, C)

Michigan's grower licenses are tiered by plant count, allowing operators to scale their cultivation operations based on capital and market demand:

• Class A Grower — Up to 100 plants, $1,200 annual fee. Suited for small-scale cultivators testing the market or supplying a limited number of processors and retailers.
• Class B Grower — Up to 500 plants, $6,000 annual fee. A mid-scale option for operators seeking meaningful production volume without the overhead of a large facility.
• Class C Grower — Up to 2,000 plants, $24,000 annual fee. The largest standard cultivation license, designed for commercial-scale growing operations.

A single entity can hold multiple grower licenses to increase plant count, and grower licenses can be stacked at the same facility location. All growers must use the Metrc seed-to-sale tracking system to tag and track every plant from propagation through harvest.

Processor License

The Processor license ($24,000/year) authorizes the holder to purchase cannabis from licensed growers and process it into derivative products — including concentrates, edibles, topicals, tinctures, and other infused products. Processors must comply with CRA manufacturing standards, testing requirements, and packaging regulations. Processing facilities require separate security plans and Metrc tracking for all inputs and outputs.

Retailer License

The Retailer license ($15,000/year) authorizes the sale of cannabis and cannabis products directly to consumers. Retailers must verify customer age (21+) for every transaction, maintain compliant point-of-sale systems integrated with Metrc, and follow all packaging, labeling, and advertising regulations. Retail locations are subject to municipal zoning requirements and must be in a municipality that has opted in to allow cannabis businesses.

Microbusiness Licenses

Michigan's microbusiness licenses were designed to lower the barrier to entry for smaller operators:

• Microbusiness — Up to 150 plants, $8,300 annual fee. This is a vertically integrated license that allows the holder to grow, process, and sell cannabis under a single license. Microbusiness licensees must be Michigan residents — this is the only adult-use license type that retains a residency requirement.
• Class A Microbusiness — Up to 300 plants, $18,600 annual fee. An expanded microbusiness license with a higher plant limit for operators who have outgrown the standard microbusiness but want to maintain vertical integration.

Microbusinesses can only transfer cannabis to or from other microbusinesses and retailers, and cannot sell to or buy from standard growers or processors.

Designated Consumption Establishment

The Designated Consumption Establishment license ($1,000/year) authorizes a venue where adults 21+ can consume cannabis on-site. These establishments — commonly called cannabis lounges — represent one of the newest license categories in Michigan. The municipality must specifically authorize consumption establishments in addition to opting in generally. Consumption lounges cannot sell cannabis directly; consumers must bring their own or purchase from an adjacent licensed retailer.

Safety Compliance Facility

The Safety Compliance Facility license ($15,000/year) authorizes an independent testing laboratory to perform required safety and potency testing on cannabis products. These labs test for THC/CBD content, pesticides, heavy metals, microbials, residual solvents, and other contaminants. All cannabis products must pass testing at a licensed Safety Compliance Facility before they can be sold to consumers.

Secure Transporter

The Secure Transporter license ($15,000/year) authorizes the transport of cannabis products between licensed facilities. Transporters must maintain detailed manifests in Metrc, use GPS-tracked vehicles, employ security protocols, and comply with CRA transportation rules. While licensees can transport their own product between their own facilities, the Secure Transporter license is required for third-party transport services.

Medical vs. Adult-Use Licenses

Michigan maintains parallel licensing programs under two separate laws:

• MRTMA (adult-use) — Enacted by Proposal 1 in 2018. Covers recreational cannabis for adults 21+.
• MMFLA (medical) — The Medical Marihuana Facilities Licensing Act (PA 281 of 2016). Covers licensed medical cannabis businesses serving registered patients.

The license categories are similar across both programs, with comparable fee structures. Many operators hold both medical and adult-use licenses, sometimes at the same location. The CRA administers both programs and uses the same application process and Metrc tracking system for both.

As of mid-2024, Michigan had 2,219 active adult-use licenses and 2,139 active medical licenses.

No Statewide License Caps

Unlike some states, Michigan does not impose statewide caps on the number of licenses that can be issued. However, individual municipalities may set their own limits on the number of cannabis businesses allowed within their borders. Pending legislation (SB 597-598) would impose a statewide cap on retailer licenses at 1 per 10,000 residents if enacted.

Social Equity Fee Reductions

Qualifying applicants under Michigan's Social Equity Program can receive fee reductions up to 75% on both application and license fees. This can significantly reduce the financial barrier to entry. See Social Equity Program for eligibility details.