In short: Before you sign, confirm the provider holds the correct Minnesota OCM transporter authorization, generates compliant METRC manifests, names liability and chain-of-custody terms in writing, and prices transparently without taking a stake in your brand. The right questions surface risk before product moves.
A cannabis delivery contract is not a standard freight agreement. The product you hand off is regulated from seed to sale, and the manifest that travels with it ties directly to your license. When something goes wrong in transit — a discrepancy, a stop, a missing signature — the question regulators ask is not only "what happened" but "who was responsible, and what did the contract say." That is why the contract matters as much as the route.
This article gives you the operator-side questions to ask before you sign, ordered the way a careful buyer actually thinks: what am I agreeing to, does it fit my license, is it compliant, what does it cost, and how do I move forward. Use it as a checklist in your next vendor conversation.
What exactly am I contracting for — transport, wholesale, or delivery?
Minnesota's framework treats these as distinct activities, and the contract should name the one you mean. Transport is the licensed movement of cannabis between two licensed businesses. Wholesale is the sale of product between operators. Consumer delivery is the licensed movement of finished product to a customer's door.
Ask the provider to state, in the agreement, which service they are performing for you and under which authorization. A logistics partner that blurs these lines creates ambiguity you do not want on file. At Emerald Enterprise & Distribution, B2B transport and B2B wholesale are operator-facing services, and consumer door-to-door delivery is its own consumer-facing line — each governed by its own terms. If your contract bundles them without distinction, ask why.
Does the provider hold the right Minnesota authorization for my product?
This is the threshold question, and it is non-negotiable. Cannabis movement in Minnesota operates under the Office of Cannabis Management (OCM) and the statutory framework in Minn. Stat. 342.35 and 342.36, with operational detail in OCM Rules chapter 9810. A delivery or transport partner must be authorized to handle your specific product category and movement type.
Ask directly:
- What license or endorsement authorizes you to move my product?
- Does that authorization cover the route and the counterparties involved?
- Can I see it in writing before we sign?
Do not accept a verbal assurance. A provider operating outside its authorization exposes your license, not just theirs. Verify the credential, confirm it is current, and keep a copy attached to the agreement.
How is the METRC manifest handled — and who generates it?
Every compliant transfer in Minnesota moves on a METRC transfer manifest. The manifest documents what is being moved, from whom, to whom, and along what route, and it must accompany the product the entire way. A discrepancy between the manifest and the physical product is one of the fastest ways to trigger a compliance problem.
Before signing, clarify the mechanics:
- Who creates the transfer manifest in METRC — you, the receiving operator, or the transporter?
- How are package tags reconciled at pickup and at delivery?
- What is the documented procedure if the manifest and the physical count do not match?
- How long is manifest and chain-of-custody documentation retained, and can you request copies?
A logistics partner that handles METRC fluently will answer these without hesitation. One that treats the manifest as your problem alone is telling you something about how they will behave when an issue arises.
What does the contract say about chain of custody and security in transit?
OCM rules require that cannabis in transport be secured and accounted for at every step. Your contract should describe how. Ask the provider to put their security practice in writing — generically is fine, and is actually preferred, because the standard is the practice, not the spectacle.
Look for terms covering:
- Secured cargo: product kept in a locked cargo area, separated from the cabin, and inaccessible during transit.
- GPS tracking: continuous location monitoring of the shipment, with records retained.
- Vetted crews sized to the load: background-checked personnel, a second crew member on runs whose value or route calls for it, and a documented standard for who is permitted to handle product.
- Unmarked movement: OCM prohibits cannabis identifiers on transport vehicles. A partner who offers to showcase a branded fleet does not understand the rule. The right answer is quiet, unmarked, and secure.
If the contract is silent on chain of custody, the gap is yours to absorb. Make it explicit.
Who carries the liability if product is lost, damaged, or stopped?
This is the clause operators most often skim and most often regret. When product is damaged in transit, lost, or held during a stop, who bears the cost — and how is it calculated?
Ask for clear answers on:
- Loss and damage: Is the provider liable for the value of lost or damaged product, and how is that value established? Is there insurance behind the promise?
- Title and risk of loss: At what moment does responsibility for the product transfer — at pickup, in transit, or at delivery acceptance?
- Stops and seizures: What happens, contractually, if a shipment is stopped or held? Who handles documentation and notification?
- Indemnification: Are the indemnity terms mutual, or one-sided against you?
No honest partner will promise that nothing ever goes wrong. What a credible partner will do is tell you exactly who is responsible when it does, in writing. That clarity is the protection.
How is pricing structured — and does the provider take a cut of my brand?
Pricing should be legible before you sign. Ask for the structure in plain terms: is it per-mile, per-stop, per-package, flat-rate, or a blend? Are there fuel adjustments, wait-time charges, or minimums? What triggers an accessorial fee?
Just as important is what the provider is *not* entitled to. A logistics partner moves product; it does not own a piece of your margin. Emerald's position is simple: we move the market, we don't take a cut of your brand. Be wary of any "partnership" that quietly attaches itself to your revenue or your customer relationships. You are buying movement and compliance, not a silent stakeholder.
Confirm the term length, the renewal mechanics, and the exit terms too. A fair contract lets you leave if the service does not hold up.
What is the single thing to get right?
If you take one action from this article, make it this: get the compliance responsibilities — authorization, METRC manifest ownership, chain of custody, and liability — named explicitly in the written contract before product moves. Everything else is negotiable. That is the clause that protects your license when a shipment does not go to plan.
FAQ
What licenses must a cannabis delivery provider hold in Minnesota?
A provider must be authorized under the Office of Cannabis Management for the specific movement type and product category, consistent with Minn. Stat. 342.35 and 342.36 and OCM Rules chapter 9810. Verify the credential in writing and confirm it is current before signing.
Who is responsible for the METRC manifest in a delivery contract?
The contract should name this explicitly. Every compliant transfer moves on a METRC transfer manifest that accompanies the product. Clarify who generates it, how tags are reconciled at pickup and delivery, and the procedure if counts and documentation do not match.
What security terms should the contract include?
Look for locked, separated cargo areas, continuous GPS tracking, and vetted crews sized to the load, with a second person on runs that warrant it. Note that OCM prohibits cannabis markings on transport vehicles, so movement should be unmarked. The standard is the documented practice, not a showcased fleet.
Who pays if product is lost or damaged in transit?
The contract should define liability, how product value is established, whether insurance backs it, and when risk of loss transfers — at pickup, in transit, or on delivery acceptance. Indemnification terms should be mutual rather than one-sided.
How should cannabis delivery pricing be structured?
Pricing should be transparent and itemized — per-mile, per-stop, per-package, or flat-rate — with any accessorial fees disclosed up front. A logistics partner is paid to move product, not to take a share of your brand's revenue or customer relationships.
What is the difference between wholesale, transport, and delivery?
Transport is licensed movement between licensed businesses, wholesale is the sale of product between operators, and consumer delivery is licensed movement to a customer's door. Minnesota treats these as distinct activities, and your contract should name the one you are buying.
