Sale of Licensed Premises

Because Michigan cannabis licenses aren't freely assignable the way a conventional business asset is, selling a licensed operation typically means selling the entity that holds the license (an equity/membership interest sale) or securing CRA approval for a change of ownership or location transfer alongside the real estate closing — the license generally does not transfer automatically just because the real estate deed does.

Deal structure and sequencing are the central issues: parties commonly use an escrow-and-milestone structure where the real estate purchase agreement closes concurrently with, or contingent on, CRA approval of the ownership change, since closing the real estate first without license approval can leave a buyer holding a building it cannot legally operate as licensed for months.

Diligence on these deals extends well beyond a normal property closing: CRA license standing and any pending violations, METRC inventory reconciliation, municipal license-cap and renewal status, and confirmation that the CRA's same-address, two-licensee restriction won't block the buyer's intended structure all need to be cleared before the parties can commit to a firm closing date.