How to Open a Consumption Lounge in Detroit


If you’re a Detroit Legacy – or a team looking for one – we can help.

How to Open a Consumption Lounge in DetroitHow to Open a Consumption Lounge in Detroit

Marijuana consumption lounges are now legal in Detroit. The City just passed the Detroit Legacy Marijuana ordinance to legalize and regulate adult-use marijuana and license application procedures. If you are interested in opening a marijuana consumption lounge in Detroit, we have the information you need.

One of the most exciting aspects of this new regulation is that the city will allow 35 licenses for consumption lounges better known in Detroit’s new ordinance as Designated Consumption Establishments,

consumption lounges are commercial spaces in which adults are legally allowed to consume marijuana products, usually paying a fee to enter the establishment. But consumption lounges are not necessarily licensed to sell cannabis and cannabis products, like dispensaries in Michigan.

 “Designated consumption establishment” means a commercial space that is licensed by the agency and authorized to permit adults 21 years of age and older to consume marihuana products at the location indicated on the state license. 

Consumption lounges or designated cannabis consumption establishments come from Detroit understanding the conflict generated for the lack of places to consume cannabis other than private property and how it  often causes an increase in possession arrests, representatives considered necessary to regulate licensed locations that permitted social public gatherings where marijuana consumption was allowed.

This license is available to any applicant; no other licenses are required. But it is also available to marijuana retailers, microbusinesses or anyone wanting to operate under this model.

Listen to our PodCast Cannabis Legalization News or Watch the YouTube titled Detroit Cannabis New – The Detroit Legacy Certification
for related information.



If you’re a Detroit Legacy – or a team looking for one – we can help.

How to Open a Marijuana Consumption Lounge in Detroit?

Make a Business Plan For Your Marijuana Consumption Lounge  in Detroit

A business plan for a marijuana consumption lounge requires knowledge about the right location and proper requirements at the place of operation. Detroit still has many regulations regarding zoning, especially for the designated consumption establishments.

Remember, the marijuan company model you create, the investors you select and the partners you choose have an impact on your license approval, make sure it is a positive one. Every person, from an investor to an employee, will be background checked throughout the process.

Any new marijuana business needs more focus, our Pitch Deck service package will help you understand who needs to be on your team – and what type of financial expectations you can use to visualize your cash flow opportunity

Detroit’s application requires the business plan to detail:

  • Business operations
  • Security
  • Testing
  • Nuisance mitigation
  • Waste handling and disposal
  • Environmentally sustainable practices
  • Community relations
  • Recruitment and training of employees
  • Protocols for employees and customer safety

Requirements to open a Consumption How to Open a Consumption Lounge in DetroitLounge in Detroit:

Some of the requirements to apply for a marijuana consumption lounge license in detroit are:

  • A Designated Consumption Establishment Plan, or diagram of the facility that explains layout, defines facility locations, and indicates distinct areas or structures distinguishing a DCE from other licenses that may be applicable in adjacent locations.
  • Building, Construction and Zoning Details so the MRA can verify a safe operation including building and fire safety review, plus ensure a detrimental impact will not occur on adjacent businesses and residences.
  • A Business Plan that must include proposed hours of operation and, if part of the plan, the intended mechanisms for consumers to acquire marijuana at the facility.
  • A Plan for Responsible Operations such as an employee training program, how consumption will be monitored, plus prevention of over-intoxication, underage access, and the illegal sale or distribution of marijuana within the establishment.
  • Waste Management Plan for handling and disposal of any waste at the facility, including unconsumed cannabis products left by patrons of the facility.

The License Application must include:

  • If applicable, Detroit Legacy Certification
  • A signed release authorizing background checks
  • A conditional land use approval for a private club that references the us of marijuana
  • A “Good Neighbor Plan”
  • A business plan
  • Financial Documentation
  • Copy of State’s prequalification

The consumption facility must have:

  • An identified area specifically suitable for marijuana consumption, as well as smoke-free areas. DCE rules do allow facilities in which only non-smokable cannabis is consumed; in these spaces, no specified place for smoking cannabis is required.
  • A smoke-free area for employees to monitor the marijuana consumption area. Facility operators must ensure employees are not subjected to indirect or unintended cannabis consumption while working at the facility.
  • The facility must have a ventilation system that directs air from the marijuana consumption area to the outside of the building, through a filtration system designed to remove visual smoke and odor.
  • The facility must have sufficient walls and barriers to ensure smoke does not infiltrate into nonsmoking areas or adjacent spaces.

Detroit Marijuana Legalization Ordinance

Search for the Regulations

Marijuana consumption lounges are pretty new concepts in the marijuana industry, which, speaking from experience, tends to complicate the compliance of regulations. You want to make sure to have the assistance of an experienced licencing lawyer that helps you prevent unnecessary risks, and understands how to interpret the regulatory authority as they navigate the new rules they are trying to enforce.

Make sure you are well assisted by an experienced marijuana lawyer that takes into consideration all the possibilities and is well aware of the norms.

Pay Attention to the Dates to Apply for a Designated Consumption Establishment License

Detroit will begin accepting applications april 1st 2021, and shall review the applications by April 30 2021. May 1st through june 15 is a reserved period for reviewing applications from detroit legacy applicants. Those who want to be considered must submit their applications no later than April 30

From June 16 through july 31 there would be a reserved period to review the application of holders of a state operating license for medical marijuana establishment. Those who want to be considered must submit their applications no later than April 30

Beggining August 1st regular applicants the city will review the application of regular applicants

Get the Most Out of the Consumption Lounge in Detroit

  • Opening a marijuana consumption lounge requires more than application forms. There are many market opportunities you have to research, take into consideration the zone you’ll be operating too.
  • The marijuana consumption lounge establishments is perfect for small businesses or those who are simply not keen on growing, processing or operating a traditional dispensary. But also could be a great addition to your marijuana dispensary. You just have to visualize the future of your ideal business
  • The creation of a business plan that leads you to profit and, eventually, success is essential to getting the most out of the dispensary business in any State, Michigan is certainly not the exception.
  • Stay productive once you start your business. Keep the plan accurate to make your business more successful in the long run.
  • Adapt. A perfect example of adaptation is Detroit’s new ordinance, learn from it. You must be able to change, adapting quickly to take advantage of new opportunities. Facing potential challenges that come with the territory will determine if you’ll have a successful business or not.
  • Operating costs vary. You should think about the unit location, area of jurisdiction in the current city, and standard operational expenses that apply


Don’t miss out on our Marijuana Legalization Map where you can browse the current status of laws in every state in the United States and see all our posts on each of them.

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If you’re a Detroit Legacy – or a team looking for one – we can help.

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Thomas Howard

Licensed to practice since 2008, Thomas Howard has represented numerous financial institutions in litigation to enforce their security interests.
Homegrown Cannabis Co's Cannabis Seeds
Picture of Thomas Howard

Thomas Howard

Licensed to practice since 2008, Thomas Howard has represented numerous financial institutions in litigation to enforce their security interests.

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