What Buyers Are Really Looking for in a Turnkey Facility

“Turnkey” should mean a buyer can step in to a fully licensed facility, get (or keep) the doors open immediately, and hit forecasted cash flow without unexpected costs or downtime. For licensed owners preparing a sale, investors evaluating acquisitions, and brokers trying to close deals, that boils down to two outcomes: low risk and a predictable path to close. Here’s what disciplined buyers are underwriting and how you can package your store to clear those bars.

Entitlements and Licenses That Transfer Cleanly

If the license and land use approvals do not transfer, nothing else matters.

Buyers expect:

• Active licenses with no open violations, unpaid fees, or contested renewals
• Land use approvals like conditional use permits validating compliant cannabis use
• Fire and safety finals and a certificate of occupancy that match what is built
• Zoning confirmation letter showing compliance with school, daycare, and park setbacks
• A detailed pathway to change of ownership for the license, including what steps will need to be taken with the state, municipality, and public to effectuate a license transfer, along with any ownership restrictions (like residency or financial capacity requirements)
• Smart seller move: commission a compliance audit before listing and fix small things like outstanding license or permit fees, camera retention days, ADA thresholds, etc.
• Provide a one page roadmap from the municipality with transfer steps, timelines, and staff contacts.

Lease Terms That Support Profitability and Longterm Use

A profitable shop with a weak or expensive lease will not hold its value.

Buyers look for:

• Lease rates that are sustainable, even as markets compress; a $30k per month “cannabis” lease from a legacy sale-leaseback will substantially devalue your asset
• Five to ten years of runway with predictable escalations and transparent NNN charges
• Lender friendly terms including SNDA and estoppel readiness
• Assignable lease with landlord consent not unreasonably withheld
• Parking, signage rights, and clarity on exclusive use or co-tenancy clauses

Red flags: egregious lease rates, landlord “sole discretion” clauses, and assignment fees tied to sales

Packaging tip: include a clean lease abstract with rent schedule, assignment language, and landlord consent template to speed up approvals

Financials and Unit Economics Buyers Can Verify

Buyers pay for stability they can diligence. Unit-level truth always beats speculative projections.

Provide:

• Twenty four months of monthly P&L statements, plus trailing twelve month summary tied to POS/S2S exports and bank deposits
• KPIs such as traffic, average basket size, loyalty penetration, discount ratio, and inventory turns
• Proof of tax payments including excise, local cannabis, and sales or use tax
• Normalized EBITDA with add backs supported by invoices or agreements
• Current balance sheet with detailed explanation on any debt outstanding, including balance, maturity, rate, and prepayment penalties

Tax reality check: United States cannabis businesses face IRC section 280E, which significantly limits deductions. Buyers underwrite after 280E cash flow and do not assume relief or reform is coming soon.

Infrastructure That Does Not Need a Rescue

Turnkey means reliable systems in place: mechanical, electrical, plumbing, security, and IT should all be permitted and maintained.

Show:

• Electrical capacity, HVAC tonnage, and water access that are sufficient for the production forecast (for grows and processors)
• Well-constructed store layout, POS placement, and ADA compliance from parking lot to counters (for dispensaries)
• Security that matches the approved plan, including camera coverage, access logs, retention settings, and a compliant safe or vault
• IT backbone including redundant internet, secure rack, and tested POS to track and trace integration
• Equipment list with serial numbers, warranties, and maintenance logs

Pro tip: most buyers will be fine with a rehab, but not a rescue. If your asset needs substantial investment to become operational or competitive, it will not command a turnkey premium.

Customers and Brand Assets That Actually Transfer

For operating facilities, a loyal customer base and transferable digital footprint make an asset more attractive.

Deliver:

• Trade area data including traffic counts, top ZIP codes, daytime and nighttime population (for retail, it’s especially helpful to show demographics relative to the number of dispensaries in the area)
• Loyalty program stats such as opt in status and churn, plus ratings trends
• Delivery KPIs if relevant, such as average delivery time and a delivery margin analysis
• Transfer plan for digital assets including domain, Google Business Profile, phone numbers, menus, and social handles

Avoid: relying only on discount-driven customers that price shop with no loyalty. Show buyers there is a real customer base they can tap post-acquisition.

Deal Mechanics That De-risk the Timeline

The clearer and simpler the deal, the easier it is for an investment committee to approve.

Preferred structures:

• Asset purchase agreement (where allowed) with allocations for licenses, FF&E, and inventory
• Escrow tied to objective regulatory milestones like transfer approval and operational commencement
• Inventory priced at cost with a staleness reserve and clear count procedure
• Limited holdbacks for compliance true ups with automatic releases
• Reasonable and clear seller financing or equity terms, if applicable for the transaction

Timeline killers: incomplete ownership packets, unclear cap tables, missing tax clearances, or unpapered landlord consents

Pricing the “Turnkey Premium” Without Fiction

Buyers pay more when risk is lower and time to cash flow is shorter. Four factors drive that premium:

1. Transferability: documented and predictable licensing and entitlement path
2. Lease quality: assignable lease, fair rent, and enough runway
3. Stabilized unit economics: verifiable KPIs and resilient margins
4. Infrastructure: compliant, maintained, ready to hand off

How to justify:

• Use cannabis specific comps in similar municipalities
• Cross check replacement costs for buildout and systems
• Adjust for approval timelines since longer clocks demand higher yields

Broker Packaging Tips That Speed LOIs

• Lead with compliance transferability, lease strength, and financial KPIs in the teaser
• Stand up a data room on day one with regulatory files, lease, financials, SOPs, vendor contracts, and a redacted HR roster
• Create a transaction timeline with target dates for diligence, transfer, and closing to manage buyer expectations

Quick Turnkey Checklist

Regulatory: license in good standing, conditional use or special use permit, zoning confirmation, and transfer steps Lease: abstract with rent schedule, assignment or consent language, parking and signage rights Financials: 24 months of P&L statements, POS/S2S and bank exports, tax filings, balance sheet, and margin breakdowns Operations: as built plans, equipment list, HVAC and electrical specs, utility access, and security map Customers and Brand: demographics, loyalty metrics, reviews trend, and digital asset transfer plan Deal Docs: purchase agreements, clear terms and milestones, inventory reconciliation, and holdback schedule

Bottom Line

Turnkey is not a label, it is an underwriting outcome. If you can prove a clean transfer path, a supportive lease, financial resilience after 280E economics, and infrastructure that will not trigger emergency spending, buyers will notice. Package the facts clearly and you will see the results in the market: faster LOIs, fewer retrades, and a premium that holds through closing.