Florida Marijuana / Cannabis Performance Bond

Get a Free Quote for Your Florida Marijuana Bond Today

Who Is Required To Purchase a Florida Marijuana Surety Bond?

As you probably know by now, Florida issues one Medical Marijuana Treatment Center (MMTC) license. This license covers any and all responsibilities of your business including:

• Growing
• Processing
• Dispensing

Every surety bond - in general - has an amount that is set the regulatory agency, in this case the FloridaDepartment of Health.

The Florida marijuana surety bond amount starts at $5 million dollars. We'll break this down in the next couple sections because this bond amount can go down substantially.

Why is a Florida Marijuana Bond Required?

As we've mentioned, this is a performance bond and all performance bonds guarantee an outcome based on a contract or in this case the laws and expectations of the license.

Medical marijuana licenses are very limited in Florida so having one issued is a big deal. The Department of Health is taking a risk on every business they issue a license to and they want to manage that risk as best as possible.

What types of specific risk is being managed by the surety bond?

Business Operational Risk

If a business does not have the financial capacity to operate successfully the Department of Health does not want to issue a license.

The high bond amount (starting at $5 million) is one of many financial stress tests a business has to pass. If a business can't afford to purchase this bond, they likely do not have the resources to operate successfully for a longer period of time.

Patient Access Risk

As we've mentioned the number of licenses is capped and issued based on a service radius of the available Florida market.

If MMTC licensed business were to go out of business that would disrupt the market.

• Processors would lose access to available product
• Dispensaries would lose access to patient ready products
• Patients would lose access to products they are medically relying on

So to manage this risk and minimize the effect of a business going out of business, the surety bond provides the finances to work around these obstacles.

Regulation And Law Risk

Finally, the Department of Health does not want a business breaking the law and getting shut down or having their operations disrupted for legal reasons.

For the same reasons as above, it's important to the Department of Health to maintain the distribution of the entire product cycle across the market area.

If a business fails to perform and shuts down, the state will use the money from the surety bond to:

• Get another business licensed
• Help with the disruption to the product cycle
• Pay any legal fees until the current or new business can restore operations

If you've been approved for a license, we want to help you secure the lowest possible price for your Florida marijuana surety bond. Fill out our online quote form and we'll call you or you can call a bond specialist today at 1-800-608-9950.

What Are The Florida Marijuana Surety Bond Amounts?

When you first open a business the Department of Health requires a $5 million dollar bond amount.

Once your treatment center serves 1,000 patients the bond amount falls to $2 million.

The reason for this lower bond amount is simply, the treatment center has demonstrated successful business operations. In the state's eyes this significantly lowers the risk that business will not be able to deliver.

This is a very high bond amount so let's look at cost. The price will be very expensive, but it will be a small fraction of these bond amounts.

How Much Does a Florida Marijuana Surety Bond Cost?

You can expect the price to be 0.5% to 1% of the bond amount.

This rate will be based on the personal (not business) credit of all the business owners.

Because these bonds have such high amounts, it's likely your business will have to provide financials. This is already part of the licensing process anyway.

And because of the capital requirements to get licensed, let's use a 0.5% and 1% rate for some example prices.

Remember, according to the Department of Health, purchasing this bond is another signal of financial stability.

If you're ready to get exact pricing for your bond, we want to help you secure the lowest possible price for your Florida marijuana surety bond. Fill out our online quote form and we'll call you or you can call a bond specialist today at 1-800-608-9950.

What Happens After You Purchase Your Bond?

Once you purchase your surety bond, we will immediately prepare the correct surety bond form with all of the correct business information.

Make sure you provide the legal name of your business along with all "doing business as" names. Typically all of these names must be on the surety bond form.

Issuing your bond will take less than one business day. We will work with you to ensure all information is correct so no changes need to be processed in the coming days.

How Often Do You Have To Pay For Your Bond?

Your marijuana surety bond must be renewed on a yearly basis.

So work into your operating budget the initial cost you paid to get your bond for the following years.

Keep in mind though if the personal credit of business owners improves the rate you'll get during your renewal will be lower and vice versa.

This is a great reason to work with us. We will not only fight to get you the lowest rate, but we'll manage your bond so as your renewal date approaches, we'll reach out so you can stay on schedule.

Marijuana Bonds And Getting Your Florida Business License/Registration

You probably understand the licensing process very well. It's a big deal to have the opportunity to secure one of these coveted MMTC licenses.

Here is a link to the official Florida government statutes that regulate this licensing process.

Medical Marijuana Treatment Center statutes