You Need a Bond to Get Your Michigan Marijuana License

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What is a Michigan medical marijuana surety bond?

The state of Michigan requires medical marijuana facilities to obtain a medical marijuana surety bond as part of the licensing process. The surety bond shows the state of Michigan that the facility has the financial means and ability to operate ethically and responsibly. It guarantees that facilities will perform business according to the terms and conditions of their respective municipality ordinances, including paying all required taxes.

How many Michigan marijuana license types are there?

There are five types of medical marijuana licenses available in Michigan under the Medical Marijuana Facilities Licensing Act (MMFLA):

  • Grower (class A, B, and C)
  • Processor (extraction/manufacturing)
  • Secure transportation
  • Provisioning center (dispensary)
  • Safety compliance facility (independent testing lab)

Get Your Michigan Marijuana Bond:

Quick Takeaways

  • Michigan requires medical marijuana facilities to post a medical marijuana surety bond to operate.
  • There are five types of medical marijuana licenses available in Michigan under the Medical Marijuana Facilities Licensing Act.
  • The City of Lansing, City of Hazel Park, City of Adrian, and Township of Egleston have passed ordinances allowing marijuana facilities to obtain a state license to operate.

Who requires Michigan medical marijuana facilities to post a surety bond to become licensed?

The MMFLA requires municipalities to pass ordinances before the state will issue marijuana business licenses in that area. So far, the following municipalities throughout Michigan have passed ordinances allowing marijuana facilities to obtain a state license to operate.

  • City of Lansing: You may need a $50,000 marijuana bond if you intend to operate a microbusiness, consumption facility, grow facility, non-capped facility, or caregiver grow in Lansing. Find more information and the latest marijuana operations licensing updates on
  • City of Hazel Park: The bond amount can vary (see Ordinance 03-18, Section 5.04.050 General Requirements). Contact the city to determine the bond amount you will need to apply for a license.
  • City of Adrian: A $100,000 surety bond (or a $20,000 escrow account) is required for those wishing to operate a commercial medical marijuana facility in Adrian, Michigan (see Ordinance No. 17-035, Section 46-506).
  • Township of Egleston: You may need a $50,000 surety bond to operate a medical marijuana facility in Egleston to ensure all closure and post-closure care requirements are satisfied.

If you need help finding the cannabis bond you need, you can reach out to ZipBonds for help.

How do Michigan marijuana surety bonds work?

Marijuana bonds are three-way contracts between an obligee (the authority requiring the bond), a principal (business to become licensed), and a surety (that issues the bond).

Bonds specifics may vary based on location and the type of business. Generally, marijuana bonds guarantee that companies pay all taxes and associated fees and fulfill the duties related to their business operations. Each business must follow all applicable rules and regulations for its industry.

If a business breaks the surety bond contract by violating a rule or regulation, an injured party may file a claim against the bond. If the claim is valid, the business must settle it. The surety company may pay for the settlement upfront. Then the business must repay them for all damages in full.

How much does a marijuana bond cost in Michigan?

The cost of your surety bond will depend on the specific type of bond, the amount required in your municipality, and your personal and business credentials (like your credit score and financial standing).

If you have excellent credit, you may pay as low as 1% of the bond amount. For example, if you need a $50,000 marijuana bond, you might only pay $500 as your annual premium. If you have poor credit, you could spend quite a bit more. However, working with a direct surety provider like ZipBonds gives you access to a large pool of sureties, allowing you to shop around and find the best rates available.

Do I need to renew my Michigan marijuana bond?

You must renew your Michigan marijuana bond every year you wish to continue operating your business. Your surety will review your credit report each year before renewing your bond, which may impact your premium. Medical marijuana bonds may be canceled within 30 days’ written notice to the obligee.

Get a Michigan Marijuana Bond Quote

ZipBonds is certified to provide Michigan marijuana bonds to qualified applicants. Start the process of getting your Michigan marijuana license by applying for your bond today. Our all-digital platform is intuitive, secure, and the fastest option for getting bonded. If you have any questions along the way, call 888-435-4191 or email



Founders Ryan Swalve and Zach Mefferd formed the vision for when they realized how overly complicated it was to help clients place surety. The frustration of being unable to incorporate the technology they’d used in other insurance-focused projects left them thinking “there has to be a better way.”

Fast forward a couple of years, and that better way is the impetus of everything we do at ZipBonds. We constantly look for innovative ways to improve the bonding process for our clients and agents. Our team comprises individuals who understand all angles of surety – for companies, agencies, and individuals. Incorporating everyone’s point of view to improve the process while simultaneously integrating cutting-edge technology is what sets our business apart.