To be eligible to open a retail store and sell recreational cannabis, you must have a Retail Operator Licence.

You are not eligible for a Retail Operator Licence if:

• you are under 19 years of age. This includes directors, officers and shareholders of corporations.
• you have been convicted or charged with certain offences:
  • any offence under the Cannabis Licence Act
  • certain offences under the Cannabis Control Act (CCA) and Cannabis Act (CA)
• you have, or previously had, certain roles or connections with a criminal organization as defined in subsection 467.1(1) of the Criminal Code (Canada):
  • you are, or have been a member of the criminal organization
  • you are, or have been involved in the criminal organization
  • you contribute, or have contributed to, the activities of the organization.
• you are carrying on activities that are not in compliance with certain laws.
  • certain offences under the Cannabis Control Act (CCA) and Cannabis Act (CA)
• you have made a false statement or provided false information in your application.
• you are in default of filing a tax return under a tax statute administered and enforced by the government of Ontario, or have any outstanding amounts owing and past due of tax, penalty or interest under those laws and have not made payment arrangements;
• you have a business number with the Canada Revenue Agency and have not filed a tax return under certain Federal or provincial legislation; 
• the application will be made by a corporation and more than 25 percent of the corporation is owned or controlled, either directly or indirectly, by one or more licensed producers or their affiliates.
• you will not be financially responsible in operating your cannabis business.
• you will not operate your cannabis retail business in compliance with the law, or with integrity, honesty or in the public interest.
• you will not have sufficient control over the cannabis retail business

• you had a Retail Store Authorization in the past but the authorization was revoked

Generally, you must wait two years to apply again for a Retail Operator Licence if you:

• applied for a new licence or renewal licence in the past but were refused, or
• you had a Retail Operator Licence in the past but the licence was revoked.

You may have conditions put on your Retail Operator Licence to address any specific risks or concerns.  There are also conditions in the Cannabis Licence Act, 2018 that apply to all Retail Operator Licences.

You cannot transfer your Retail Operator Licence to another person or business.

To open a retail store and sell recreational cannabis, you must have a Retail Store Authorization. 

There are some places where you cannot open a cannabis retail store. More information about that is in the next section on Retail Store Location.

Generally, you must wait two years to apply again for a Retail Store Authorization if you:

• applied for a new Retail Store Authorization or renewal of a Retail Store Authorization in the past but were refused, or
• you had a Retail Store Authorization in the past but the authorization was revoked.

You are not eligible for a Retail Store Authorization for a store if:

• you do not have a Retail Operator Licence now, or would not have a Retail Operator Licence at the time when the Retail Store Authorization would be issued.
• you have a Retail Operator Licence that has conditions that do not allow you to apply for or receive a Retail Store Authorization for that store.
• you have been convicted of or charged with certain offences:
  • any offence under the Cannabis Licence Act
  • certain offences under the Cannabis Control Act, 2017 and Cannabis Act (Canada) or their regulations
• you have, or previously had, certain roles or connections with a criminal organization as defined in subsection 467.1(1) of the Criminal Code (Canada):
  • you are, or have been a member of the criminal organization
  • you are, or have been involved in the criminal organization
  • you contribute, or have contributed to, the activities of the organization.
• you are carrying on activities that are not in compliance with certain with certain laws.
  • Certain offences under the Cannabis Control Act (CCA) and Cannabis Act (CA)
• you hire or plan to hire someone who does not have a Cannabis Retail Manager Licence, but should have that Licence because of the work they do
• it is not in the public interest, based on the needs and wishes of the people who live in the municipality where the proposed store would be located.
  • After you apply for a Retail Store Authorization, the Registrar will inform local residents and the municipality about the application by having a notice posted at the proposed store and on the AGCO’s website.
  • The municipality or local residents submit written submissions to the Registrar about whether the proposed store is in the public interest, as set out in regulation. The submissions must be sent within 15 calendar days after the notice is posted.
  • Relevant submissions are limited to the following matters of public interest:
    • protecting public health & safety;
    • protecting youth and restricting their access to cannabis;
    • preventing illicit activities in relation to cannabis.
• the store, equipment and facilities do not comply with the Cannabis Licence Act, 2018, regulations, the Registrar’s Standards or requirements
• you do not have sufficient control over the store, equipment and facilities
• you have made a false statement or provided false information in your application

A Licensed Producer and its affiliates are eligible to apply for a single RSA. The proposed cannabis retail store must be located on or within the site set out in the federally issued production licence.

You may have conditions put on your Retail Store Authorization to address any specific risks or concerns.  There are also conditions in the Cannabis Licence Act, 2018 and regulation that apply to all Retail Store Authorizations.

You cannot transfer your Retail Store Authorization to another person or business.

Every cannabis retail store must have a licensed retail manager. People who perform certain duties within the cannabis retail store must get a Cannabis Retail Manager Licence.  This includes people who: 

• supervise, manage or hire employees of the store
• manage the sale of cannabis
• manage compliance issues relating to the sale of cannabis
• buy cannabis for the store
• enter into contracts for the store. 

The only people that can perform the duties listed above are people with a Cannabis Retail Manager Licence or a Retail Operator Licence. 

You are not eligible for a Cannabis Retail Manager Licence if: 

• you are under 19 years of age 
• as a licensed retail manager, you will not act in compliance with the law, or with integrity, honesty or in the public interest
• you have been convicted or charged with certain offences: 
  • any offence under the Cannabis Licence Act 
  • certain offences under the Cannabis Control Act (CCA) and Cannabis Act (CA)
• you have, or previously had, certain roles or connections with a criminal organization as defined in subsection 467.1(1) of the Criminal Code (Canada): 
  • you are, or have been a member of the criminal organization
  • you are, or have been involved in the criminal organization
  • you contribute, or have contributed to, the activities of the organization. 
• you are carrying on activities that are not in compliance with certain laws. 
  • certain offences under the Cannabis Control Act (CCA) and Cannabis Act (CA)
• you have made a false statement or provided false information in your application

Generally,  you must wait 2 years to apply again for a Cannabis Retail Manager Licence if you:

• applied for a new Cannabis Retail Manager Licence or renewal Cannabis Retail Manager Licence in the past but were refused, or
• you had a Cannabis Retail Manager Licence in the past but the licence was revoked.

You may have conditions put on your Cannabis Retail Manager Licence to address any specific risks or concerns. There are also conditions in the Cannabis Licence Act that apply to all Cannabis Retail Manager Licences. 

You cannot transfer your Cannabis Retail Manager Licence to another individual. 

Municipalities:    

Ontario municipalities had a one-time option to opt out of having cannabis retail stores in their communities. They had until January 22, 2019 to notify the AGCO that their council had passed a resolution to opt out of having cannabis retail stores. Municipalities that choose to opt out can opt back in at any time—but once they have opted in, they may not reverse their decision. 

Cannabis retail stores cannot be located in a municipality that has passed a resolution prohibiting cannabis retail stores from being located in the municipality. 

• The AGCO’s website has a list of municipalities that have decided not to allow cannabis retail stores.  
• Municipalities that have opted-in may not create a licensing system respecting the sale of cannabis nor pass a bylaw that distinguishes land or building use for cannabis from any other kinds of use. 

Near Schools:  

The Registrar cannot issue an RSA to a proposed cannabis retail store located less than 150 metres from a school or private school, as defined in the Education Act. This will be determined as follows:  

• When the school or private school is the primary or only occupant of a building, 150 metres shall be measured from the property line of the property on which the school or private school is located.  
• When the school or private school is not the primary or only occupant of a building, 150 meters shall be measured from the boundary of any space occupied by the school or private school within the building. 

The distance between a proposed retail store and a school or private school is measured by a straight line from the closest point of the school property or boundary as described above to the closest point of the proposed retail store.

If either the store and/or the school is located on a floor other than the ground floor or main level in its respective building, the measure of the 150 metre distance may take into vertical distance in assessing compliance with this requirement.

The above rules do not apply if the private school is located on a reserve or if the private school only offers classes through the Internet.

Online submission of the application is not a guarantee or confirmation that the proposed location is compliant with the school proximity restriction. The proposed retail location must be in compliance with the school proximity requirement at the time the RSA is issued.

There must be separation between your cannabis business and other businesses. If an existing retail space is renovated to create two or more spaces, the space that is intended to be a cannabis retail store must adhere to the listed criteria below and all the eligibility requirements set out in the Cannabis Licence Act, 2018 and regulation. 

The retail space where you will sell cannabis: 

• must be enclosed by walls separating it from any other commercial establishment or activity
• does not include an outdoor area
• cannot be entered from or passed through in order to access any other commercial establishment or activity, other than a common area of an enclosed shopping mall.

In addition, the area where cannabis will be received or stored cannot be accessible by any other business or by the public. This does not mean that an establishment is required to have a separate door for product receipt. For example, if a premises has only one door, product could be received through this door outside of business hours, or access to the door could be restricted by security personnel at the time of product delivery.

As part of its review of your application for a new licence or authorization, or renewal licence or authorization, the AGCO may do background checks and investigations on applicants, and any affiliated or interested parties in the business, as needed. The AGCO may look at the character, financial history and competence of persons applying for a licence or authorization.  You may be required to pay some of the costs of the background checks or investigations.

In Ontario, anyone who works in a cannabis retail store must successfully complete an AGCO Board approved cannabis retail employee training program before their first day of work to support the safe sale and consumption of cannabis. This includes:

• holders of a Retail Store Authorization
• holders of a Cannabis Retail Manager Licence
• employees of a cannabis retail store

There are rules you must follow when operating your store. 

You must: 

• begin selling cannabis at your authorized store within one year of getting your Retail Store Authorization, and continue to sell cannabis
• open only during permissible hours: between 9:00 a.m. and 11:00 p.m. on any day
• display the official cannabis retail seal. You must post the seal in a place where people can easily see it from outside the entrance to the store. The seal must be at least 17 centimetres wide and 20 centimetres long. You can chose to post the French version of the seal, or the English version, or both. 
• remove the seal as soon as possible if your Retail Store Authorization is revoked or not renewed
• post your Retail Store Authorization in the store in a place where people can easily see it
• only sell cannabis that has been made by someone who is authorized under the Cannabis Act (Canada) to make cannabis for commercial purposes
• keep records of specified information and activities
• have measures in place to reduce the risk that your cannabis will be redirected to the illegal market or illegal activities
• record all sales
• make information about the responsible use of cannabis available to patrons
• ensure that all licensed managers and other employees working in your store successfully complete the required Board approved training program prior to their first day of work at the store. 
• request identification of anyone who looks under 25 years old and be satisfied the person is at least 19 years of age prior to allowing them to enter the store. 

You must not: 

• sell cannabis or cannabis accessories to anyone who is under 19 years old
• allow anyone who looks under 25 years old to enter the store, unless you first request identification and are satisfied the person is at least 19 years of age
• sell cannabis to anyone who is intoxicated or looks intoxicated
• sell more than 30 grams of dried cannabis (or equivalent amount of another kind) to a person in a single visit
• hire anyone who is under 19 years of age. 

You cannot sell cannabis or cannabis accessories from a display that allows self-service, or from a vending machine. 

You must display your cannabis and accessories in a way that they cannot be seen by a young person, even from outside the store.

Authorized cannabis retail stores are permitted to offer delivery and curbside pick-up services

Note: Cannabis retail stores are not permitted to operate entirely or predominantly as delivery businesses.

Requirements for Delivery 

• Delivery can only be done by the Retail Store Authorization (RSA) holder or their employees. Third party delivery is not permitted.
• Deliveries can only be made to a residence or private place in Ontario (for instance, a hotel room would be considered a private place).
• Deliveries can only be made to a person who is at least 19 years old. If the person appears to be under 25 years of age, the authorization holder or employee completing the delivery must require the person to provide identification and must be satisfied that the person is at least 19 years old.
• Delivery must be at the address specified in the order.
• Records of deliveries must be maintained.
• Delivery orders must be placed with a specific store location.
• Delivery orders must originate and be fulfilled from that same store with products that are stored on-premises.
• Cannabis cannot be removed from the store for delivery unless an order has been received.
• If cannabis is removed from the store for delivery but the delivery is not completed, the cannabis must be returned to the same store from which the delivery originated on the same day, and it must remain there until the next day on which delivery is attempted.
• Cannabis may only be delivered at a time when the physical cannabis retail store is open to the public.

• If the store is in a premises whose owner or landlord requires it to be closed to the public during the permitted hours of operation, the store may still complete deliveries between 9:00 a.m. and 11:00 p.m. Examples of such a scenario include retail stores located within malls. However, a store cannot deliver if the landlord or owner requires it to be closed and is an interested person in the holder of the Retail Store Authorization (RSA).

Requirements for Curbside Pick-Up 

• Curbside pick-up transactions can only be completed by a RSA holder or employee and must be completed in an area adjacent to the store that is captured by the store’s surveillance system.

Delivery Requirements to First Nations Communities

• Delivery to First Nations communities is permitted unless the community has requested delivery be restricted.
• First Nations band councils wishing to restrict delivery to their community can submit a band council resolution to the AGCO. The AGCO will notify all authorized retail stores when a band council resolution is received and the restriction would come into effect 30 days after such notice is provided, after which point any delivery to the First Nations community would not be permitted.

Requirements for Store Websites, Apps or other Similar Online Platforms

• For websites, apps or other similar online platforms used for the purposes of the cannabis retail store, licensees must take reasonable measures to ensure that customers accessing them are at least 19 years of age.
• Licensees must display the official Ontario cannabis retail seal and make available the applicable RSA information (the authorization number, the holder’s name, the store’s operating name and the store address) on websites, apps or other similar online platforms.

You must apply to renew your licence or authorization before the current term expires. 

As a courtesy, the AGCO will send a renewal reminder sixty (60) days prior to the expiration date of a licence and an additional reminder seven (7) days prior to expiration if the renewal application has not yet been submitted.

If your renewal application and applicable fee(s) are submitted on or before the expiry date, your licence and/or authorization will be deemed to continue until your licence and/or authorization is renewed.

If your renewal application and applicable fee(s) are not submitted before the expiry date on your licence and/or authorization, it will expire and cannot be renewed.

How to submit a renewal application:

To begin your renewal application, log into your iAGCO account and click the “Renew” button next to the applicable licence/authorization.

Please note: The “Renewal In Progress” status on your iAGCO account is not confirmation that the renewal application has been submitted; it could mean that someone started a draft renewal but has not paid the fees nor submitted the application. You are encouraged to use measures to confirm that renewal applications are submitted, such as keeping iAGCO Application Confirmation emails or Application Summaries. If you have shared your access code with others and/or have previously permitted others to submit applications on your behalf, notify the AGCO in writing when that permission is revoked.

Effect of non-renewal of Retail Manager Licences

If your Retail Manager Licence expires, you cannot perform any of the functions under subsection 5(1) of the Cannabis Licence Act.

Licensed Operators are responsible for ensuring that anyone performing the functions under subsection 5(1) of the Cannabis Licence Act hold an active Retail Manager Licence.

• The status of AGCO-issued licences can be searched online via iAGCO

• QR codes on the licence can be scanned to confirm authenticity and/or to confirm the licence status

Effect of non-renewal of Retail Operator Licences

Subsection 12(1) of the Cannabis Licence Act indicates that if a holder’s Retail Operator Licence is revoked or fails to be renewed, any Retail Store Authorizations held by the holder are revoked from the time of the Retail Operator Licence revocation or non-renewal.

Effect of non-renewal of Retail Store Authorizations

Subsection 12(3) of the Cannabis Licence Act indicates that if a Retail Store Authorization is revoked or fails to be renewed and the Registrar considers it appropriate in the circumstances to do so, the Registrar may, without issuing a proposal, revoke or suspend:

• Any other Retail Store Authorization held by the same holder;

• The holder’s Retail Operator Licence; or

• Both.

You must cease operation of any retail stores where a Retail Store Authorization has expired or has been suspended or revoked. You are prohibited under the Cannabis Control Act, 2017 from selling or distributing cannabis.

There are penalties for offences related to unauthorized sale or distribution, false representation as an authorized cannabis retailer, etc. under the Cannabis Act, Cannabis Control Act, 2017, and/or the Cannabis Licence Act, 2018. You are reminded of your obligations to comply with all laws and regulations and of your responsibility to renew on time.

If you no longer require your Cannabis Licence(s) and/or Authorization(s), more information on requests to cancel can be found at: Cannabis Retail Regulation Guide: Modifications to Existing Licences / Authorizations

As part of the AGCO’s risk-based licensing approach, one or more conditions may be attached to a Cannabis Retail Operator Licence, Retail Manager Licence and/or Retail Store Authorization by the Registrar to help the licensee minimize risks identified during the assessment process. Below is a complete list of the conditions the Registrar may impose, as approved by the AGCO Board of Directors:

Cannabis Retail - Plans

As part of the AGCO’s risk-based licensing approach, the Registrar may require that a licensee prepare one or more plans to address areas of risk identified during the assessment process. Below is the type of plan the Registrar may require, as approved by the AGCO Board of Directors:

Compliance Plan

A plan designed to ensure that the authorized store is operating in compliance with the overall cannabis retail regulatory regime in place in Ontario, helping to protect the public-at-large, as well as the licensee, from potential harm caused when regulations are not followed. The plan must identify best practices, policies and other requirements that the licensee will adopt in order to achieve specific and general compliance goals, with a primary focus on the regulatory requirements that are specific to retail cannabis licensees.

This includes reasonably addressing issues such as record-keeping and inventory management, safety and security, management structure and policies, preventing access by minors, preventing illicit activity, the type of products available for sale, staff training, store policies, internal control issues, and other general compliance issues.

Removing a Condition on a Cannabis Licence/Authorization

If you have a condition(s) on your cannabis Retail Operator Licence, Retail Manager Licence and/or Retail Store Authorization, and circumstances have changed, you may apply to have a condition removed. Depending on the manner in which the condition was added to your licence and/or authorization you will be required to apply to either the AGCO or the Licence Appeal Tribunal (LAT).

You may apply to the AGCO’s Registrar to have a condition on your licence and/or authorization removed if:

• The condition was imposed on a licence/authorization by the Registrar with your consent pursuant to the Cannabis Licence Act.

• The condition was imposed on the licence/authorization by the Registrar as part of the AGCO’s risk-based licensing process. Risk-based licensing conditions can only be removed if the Registrar determines that the risk designation is no longer necessary. 

Please note that the Registrar will only consider removing a condition if the circumstances that required it have changed and it is deemed to no longer be necessary. To request a removal of conditions, you must log into iAGCO, select “Request a Change”, select the appropriate licence and/or authorization and select “Removal of Condition(s) on Consent” to submit all relevant information and supporting documentation.

You may apply to the LAT to have a condition on your licence and/or authorization removed if:

• The condition was imposed by a panel of the LAT after a hearing

In this case, you must consult the LAT website for the applicable forms and process.

Changing Legal Entity Type

Cannabis licences and/or authorizations are non-transferable. If you are the holder of a Cannabis Retail Operator Licence and/or Cannabis Retail Store Authorization and would like to change your legal entity type (for example, sole proprietor to a corporation) you must submit a new application and applicable fees.

Change Operator at Existing Authorized Store

Cannabis licences and/or authorizations are non-transferable. If a new operator intends to take over an existing authorized store from the existing licensee, a new retail store authorization application and applicable fees must be submitted.

If there is cannabis inventory already onsite at the authorized retail store, the existing licensee and the applicant must reach an agreement regarding the inventory. If the applicant does not wish to take on the cannabis inventory the licensee must determine what to do with inventory.

Corporate Structure Changes

To notify the AGCO of corporate structure changes as outlined in the Registrar’s Standards, you must log into iAGCO, select “Request a Change”, select the appropriate Cannabis Retail Operator Licence and select “Corporate Structure Update” to submit all relevant information and supporting documentation, including disclosure.

Documentation confirming the transactions are completed will be required before changes can be approved.

New Sources of Funding and/or Agreements

The holder of a cannabis retail operator licence is required to notify the Registrar within five (5) business days of entering into any agreements or of any new sources of funds used to support the operations of their cannabis business.

To disclose third party agreements or new sources of funds, you must log into iAGCO, select “Request a Change”, select the appropriate Cannabis Retail Operator Licence and select “New and/or Changes to Agreements or Sources of Funds” to submit all relevant information and supporting documentation.

Adding and/or Changing Names

Licensees are reminded that their store’s operating name must match what is set out on the Retail Store Authorization per the Registrar’s Standards.

If the licensee is a corporation, partnership or sole proprietorship, its business trade (operating) name may have to be registered under the Business Names Act. For information and forms, please see the Ontario.ca Central Forms Repository. Forms must be forwarded to the Companies and Personal Property Security Branch for processing.

Note:

• Licensed Retail Managers changing their legal name should submit this change in relation to their Retail Manager Licence.

• Licensed Retail Operators changing the name of the legal entity should submit this change in relation to their Retail Operator Licence and any Cannabis Retail Store Authorizations they hold.

• Licensed Retail Operators changing the operating name of their store should submit this change in relation to their Cannabis Retail Store Authorization.

To request name change, you must log into iAGCO, select “Request a Change”, select the appropriate licence and/or authorization and select “Adding and/or Changing Names” to submit all relevant information and supporting documentation.

Request to Cancel a Licence and/or Authorization

The Registrar may cancel a licence or authorization if the holder makes a request to the Registrar in writing and surrenders the licence or authorization.

If you are a licensed operator permanently closing an authorized store, in addition to notifying the AGCO of the permanent closure through the notification matrix, you must also submit a separate request to cancel your authorization.

To request a cancellation of your licence and/or authorization, you must log into iAGCO, select “Request a Change”, select the appropriate licence or authorization and select “Request to Cancel” to submit the request and to provide the required documentation.

Note:

• If the holder of both a Cannabis Retail Operator Licence and Cannabis Retail Store Authorization(s) wants to cancel their Retail Operator Licence, they must submit a request to cancel and surrender each Retail Store Authorization to the Registrar together with the Retail Operator Licence.

• Operators must comply with the requirements specified by the Registrar respecting any cannabis left unsold or undistributed as a result of the cancellation and ensure that final reporting obligations are completed.

• If the licensee is a corporation, a Board Resolution confirming the decision to cancel may be required.

The AGCO employs a risk-based approach when issuing and regulating Cannabis Retail Operator Licences, Cannabis Retail Manager Licences, and Cannabis Retail Store Authorizations. Risk-based licensing allows the AGCO to encourage good business practices throughout the industry and to focus its own regulatory resources where they will make the most difference.

Although there is always some risk attached to the sale of recreational cannabis, the AGCO recognizes that due to variables (such as location, past history and experience), some establishments and individuals pose a greater risk to the public interest and/or to non-compliance with the law. Risk-based licensing is one of several initiatives the AGCO has implemented in the other sectors it regulates.  This approach to licensing allows AGCO to base its decisions on risk assessments and its approach to regulation on encouraging compliance rather than relying solely on enforcement following any violations.

Risk-based licensing assists Cannabis Retail Operator licensees, Cannabis Retail Manager licensees and Cannabis Retail Store Authorization holders in operating their establishments in a safe, responsible, and compliant way.

The authority to carry out a risk-based licensing regime is given to the AGCO under Section 6 (5) of the Cannabis Licence Act, 2018.

How Risk-Based Licensing Works

There are four key principles behind risk-based licensing:

1. To identify persons or places that pose specific risks to the public interest;
2. To lessen risks and ensure compliance with the Cannabis Licence Act, 2018, and its regulations, and the Registrar’s Standards for Cannabis Retail Stores through the entire lifecycle of a licence;
3. To reduce the administrative burden for those who pose a lower risk, where possible; and
4. To focus more AGCO resources on those cannabis retail stores that pose enhanced risks.

The application of risk-based licensing can occur at any point in the lifecycle of a Cannabis Retail Operator licence, Cannabis Retail Manager licence, and Cannabis Retail Store Authorizations.

New applicants proceed through a three step process:

1. After an application, for a licence or authorization, is received, an eligibility assessment process takes place. During the initial application or authorization review, the Registrar uses specific criteria to assess the risk(s) posed to the public interest, and of non-compliance with the law.
2. After reviewing all the available information on the licensee/applicant, the Registrar assesses the risks and determines if the licence should proceed to an enhanced review.
   • If the Registrar believes that no conditions need to be placed on a licence, or if a licensee has taken steps on their own to recognize and manage any risks, then these establishments will see no change in the way that their licences are administered.

3. If the Registrar believes that a licensee may need more assistance and support to remain compliant with the Cannabis Licence Act, 2018, following the eligibility assessment review, then conditions may be placed on the licence, and/or more AGCO resources will be focused on the licensee in order to mitigate any risks.

Applicants renewing their licence or authorization, or having a condition on their licence, would only proceed through steps 2 and 3.

During the lifetime of a licence or authorization, the Registrar can reassess the risk posed by the licensee. This reassessment can occur either because the licensee requests a reassessment, or because the Registrar becomes aware that there has been a change in circumstances and there should be a reassessment. At each of these times the Registrar may add, remove or amend one or more conditions.

All owners/operators of cannabis retail stores along with store managers are subject to the provincial Cannabis Licence Act, 2018, its regulations and the Registrar’s Standards.

If you do not comply with legislation and regulations or are no longer eligible for your licence or authorization, your licence or authorization may be suspended or revoked.  You will be advised of the licence or authorization being suspended or revoked and can request a hearing before the Licence Appeal Tribunal.

In some cases, depending on the reasons, the licence or authorization may be suspended or revoked immediately.

If your Retail Store Authorization is suspended, you must post a sign about the suspension in a place where people can easily see it from outside the store.

If your Retail Store Authorization is revoked, suspended or cancelled, you must comply with any rules set by the Registrar regarding the disposal of cannabis that has not been sold or distributed.

AGCO Inspectors may visit the retail store location to confirm compliance with the Cannabis Licence Act, 2018 and regulations. You must allow the inspection, and you must not interfere with the inspector, refuse to answer questions related to the inspection, or provide false information.  

 When doing an inspection, an AGCO Inspector may: 

• ask you for and look at certain records that are relevant to the inspection
• take certain records away from the store to review, examine, test or copy. In this case, the Inspector will give you a receipt confirming which records have been taken. 
  • After the inspector has taken the records, you can request that the records be made available to you. 
  • The records will be returned to you in a reasonable time, unless the records cannot be returned because of the testing done. 
• take photographs or other recordings
• ask about financial transactions, records or other matters relevant to the inspection. 

If an inspector asks you for a record, you must provide it. You must also must help the inspector understand the record or provide it in a readable form.

If you have a Retail Operator Licence, a Retail Store Authorization and/or a Cannabis Retail Manager Licence, no one is allowed to offer you, or your employees, a material inducement or benefit. 

You are not allowed to give or offer to give away cannabis or cannabis accessories to someone without charge.  You cannot offer things or services to induce a person to purchase cannabis. 

Inducements between licensed producers and retailers

The Registrar’s Standards for Cannabis Retail Stores generally prohibit licensees from entering into agreements for items, benefits, payments, or services with licensed producers (LPs) and their representatives with the purpose to promote or increase the sale of a particular product by the licensee or their employees. In other words, licensees are not allowed to ask for or accept material inducements.

There are several exemptions to this general prohibition, which are listed below, with some additional context.

Items, Benefits or Services of Nominal Value:

The standards under Section 6.0: Advertising and Promotions state that licensed retailers may accept or enter into agreements with an LP or their representative for items, benefits or services of nominal value. Nominal value items, benefits or services, unlike financial or material inducements, are those that are of inconsequential value.

The AGCO does not prescribe a specific monetary value for what constitutes an item, benefit or service of nominal value. The determination is contextual and considers a number of factors which may include:

• Are you likely to change your behaviour toward an LP or the LP’s product after receiving an item, benefit or service?
  • If yes, then this item, benefit or service would not be considered to be of nominal value
• Is the item, benefit or service valued at an amount that defrays your operational costs?
  • Nominal value would not be significant enough to defray operational costs
• How many items, benefits or services have been provided over a period of time?
  • Nominal value is associated with a low volume of benefits over a period of time (i.e., the benefits are provided infrequently, and do not add up to a substantial value over time)

The following is a list of examples of items, benefits or services that may be considered nominal. Note that this list is not exhaustive, and it is possible for these examples to be material inducements, depending on the contextual factors above.

• T-shirts
• Hats
• Lanyards
• Inexpensive cannabis accessories
• Gift bags of inexpensive items related to cannabis 

Items, Benefits and Services Related to Education or Training:

Standard 6.5 also allows licensed retailers to accept items, benefits or services that are related to education or training. Examples of items, benefits and services related to education and training may include:

• Education or training sessions or materials
  • Including education or training outside of the licensed retail store (e.g., participating in such a session as part of a tour of an LP’s facility)
• Modest meals and refreshments during the education or training
• Cannabis product samples directly related to education or training
  • The expectation is that sample sizes would be a small quantity of a particular strain of cannabis or product available in Ontario
  • Samples of a particular strain of cannabis or product should be received infrequently

Sale of Business Data:

The sale or sharing of personal customer information continues to be prohibited by Canadian law, unless expressly consented to. Licensed retailers may enter into agreements with LPs for the sale of data for business intelligence purposes. The AGCO expects that the fee charged by the licensee and paid for by the LP should be at fair market value. Licensed retailers are expected to follow applicable privacy laws and regulations.

Ownership Interests and Franchise Agreements:

Financing and lease agreements, as well as franchise agreements between retailers and LPs or their affiliates, are permitted under Standard 6.5.

Store Brand Cannabis Products:

Agreements between retailers and LPs for store brand cannabis products (also known as white labels, private labels, private brands, and in-house/house brands) are permitted under Standard 6.5.

Nature of Permissible Activities

Standard 6.6 sets out constraints on agreements that are permissible under Standard 6.5, to ensure that they are not used as a method for material inducements.

Agreement between retail licensees and LPs must not:

1. Define the amount of product from the licensed producer or its affiliates that must be offered for sale at the retail store;
2. Require a defined amount of display space in the retail store to be dedicated to product from the licensed producer or its affiliates;
3. Provide merchandising, marketing or promotional activities to the licensed producer or its affiliates; or
4. Restrict the ability of the licensed producer or its affiliates to sell its product at other retail stores, or the ability of the licensee to sell products from other licensed producers or their affiliates.

Prohibited Activities

Aside from the exemptions set out in Standard 6.5, the Standards on inducements set out a general prohibition on agreements for items, benefits, or services between licensed retailers and LPs and their representatives.

Examples of prohibited activities include:

• Sale of in-store or online advertising space
  • Licensed retailer requiring or receiving payments from an LP for advertising of the LP
  • Licensed retailer co-branding advertisements with LPs (i.e., sharing the cost of content development for the purposes of marketing and promotional activities)
• Product features in-store or online
  • Licensed retailers requiring or receiving payments from LPs for advertising space, preferred shelf placement of products, or promotional activities either in-store or online
• Cannabis for sensory display purposes
  • Licensed retailers receiving cannabis for sensory display purposes from LPs
• Fixtures or physical assets
  • Licensed retailers receiving physical assets (e.g., branded and non-branded refrigerators, televisions, computers, projectors, monitors for product listing boards, appliances such as rosin presses) from LPs
• Items essential to the operation of the business
  • Licensed retailers receiving things from an LP that could be considered essential to the operation of their business (e.g., staff uniforms, furniture, appliances, renovations, point of sale system or equipment, security equipment)
• Sale incentives
  • Licensed retailers or their employees receiving any benefits from an LP tied to the sales performance of any given product or brand (e.g., concert tickets, gaming consoles, luxury goods)
• Cash or rebates
  • Licensed retailers receiving cash or cash rebates, product or product rebates, or price discounts from LPs in exchange for listing particular products at below-market prices
• Travel or accommodation for education or training
  • Licensed retailers or their employees receiving travel or accommodation related to education or training, directly or indirectly from LPs
• Monetary compensation for education or training
  • Licensed retailers or their employees receiving monetary compensation for receiving education or training from LPs

Recordkeeping

If you enter into an agreement pursuant to Standard 6.5, you must follow the additional record keeping requirements set out in Standard 8.1, requirement 10.

To meet cannabis regulatory requirements under Standard 8.1, requirement 10, you are required to: 

Under the Cannabis Licence Act, 2018 (CLA) and Regulation 468/18, the Registrar has the authority to establish standards and requirements with respect to a number of areas, including advertising and promotional activities.

Information about the standards and requirements for advertising and promoting cannabis, cannabis accessories or the sale of cannabis can be found in section 6 of the Registrar’s Standards for Cannabis Retail Stores.

Please note cannabis retail store operators are subject to the federal Cannabis Act and its regulations, which outline permissible and prohibited advertising and promotional activities.

July 1, 2020 amendments to the Smoke Free Ontario Act exempt cannabis retail stores from the ban on the display of vapour products and clarify that cannabis retail stores may sell flavoured cannabis vape products.  

In general, advertising and promotion includes any public notices, representations or activities that aim to attract attention to cannabis, cannabis accessories or the sale of cannabis.

Monetary penalties are one of the compliance tools the AGCO may use when licensed operators, retail store managers or authorized stores are found to have acted out of compliance with the Cannabis Licence Act, 2018 (CLA), its regulation or the Registrar’s Standards for Cannabis Retail Stores.

A monetary penalty is a financial consequence that a licensee or authorized retailer is required to pay as a result of a contravention of the CLA, regulations or standards. Monetary penalties are a step towards ensuring compliance that allows the AGCO to take appropriate regulatory action that is greater than a warning but not as severe as a licence or authorization suspension or revocation. The use of monetary penalties  aligns Ontario with the majority of other Canadian jurisdictions, which have some form of monetary penalty system.

Schedule of Monetary Penalties: Cannabis Licence Act, 2018 and Regulation 468/18

For more information, see the Monetary Penalties page.

Processing Times

• The AGCO has a dedicated cannabis licensing team to work with Retail Operator Licence, Retail Store Authorization and Cannabis Retail Store Manager applicants.
• Applications must be submitted online through the iAGCO portal and include all the required information.
• Circumstances that will delay issuance of a Retail Operator Licence include:
  • Higher risk applicant eligibility factors requiring closer inspection (e.g. criminal, financial and other applicant/affiliate background considerations). For more information, please see the Cannabis Retail Licences and Authorization section of this guide
  • Complex corporate structure
  • Incomplete application submissions requiring multiple discussions with the applicant. For more information, please see the Application Process section of this guide
  • Applicant delays in responding to the AGCO when it requests clarifications or further information
  • Applicant delays in providing the AGCO with fully executed agreements with third parties and disclosure information on all parties with an interest in the business
• Circumstances that will delay issuance of a Retail Store Authorization include:
  • Incomplete application submissions requiring multiple discussions with the applicant
  • Applicant delays in responding to the AGCO when it requests clarifications or further information
  • High volume of written submissions received through the public notice process
  • The store is not ready for pre-authorization inspection
  • The store does not meet pre-authorization inspection requirements.
• Please note that the Retail Store Authorization application will not be approved if it is in a municipality that has opted out of having cannabis retail stores.

Licence Holder Responsibilities

For complete details about your legal responsibilities as a licence holder, refer to the Cannabis Licence Act, 2018 and its regulations which is available online or by contacting Publications Ontario at 416-326-5300 or toll-free at 1-800-668-9938.

Personal and Entity Disclosure Requirements

There are personal and entity disclosure requirements when applying for a Cannabis Retail Operator Licence, Retail Store Authorization and Retail Manager Licence. Entity/individual disclosure information must also be provided by applicant corporations and by all corporations directly or indirectly holding 10% or more of shares. For more information, see the Personal and Entity Disclosure Requirement Guide.

Municipal Requirements

Prior to applying for a Retail Store Authorization, please check with your local municipality to ensure that your premises meets municipal requirements for retail stores and that it is not a municipality that has opted out of cannabis retail sales.   

Public Notice

Once a complete Retail Store Authorization application is received by AGCO:

1. The applicant will be notified, via iAGCO, that they have 24 hours to post a placard at the location of the proposed retail store location.  The placard must be posted for 15 calendar days and it will indicate that an application has been submitted for a cannabis retail store at that location.
2. All cannabis Retail Store Authorization applications that are undergoing the public notice process will be searchable on the AGCO’s iAGCO portal.

After the Public Notice period has ended, the AGCO will provide the Applicant with copies of any written submissions received from local residents and from the municipality as a result of the Public Notice Process in response to the application. Authorization applicants will have five (5) calendar days to provide a written response to the Registrar related to any written submissions received from local residents and/or the municipality and the Registrar will consider the applicant’s response, if any.

• Relevant submissions are limited to the following matters of public interest:
  • Protecting public health & safety
  • Protecting youth and restricting their access to cannabis
  • Preventing illicit activities in relation to cannabis.

For more information on the Public Notice process, please see the Public Notice for a Cannabis Retail Store Authorization section of this guide.

Application Process for Operating a Cannabis Retail Store on a First Nations Reserve

To operate a retail store and sell recreational cannabis in a store on a First Nations reserve, you must apply for a Retail Operator Licence and a Retail Store Authorization.

• You may only apply for a cannabis Retail Operator Licence and a Retail Store Authorization if you submitted a complete Retail Store Authorization application online form through iAGCO and were one of the applications selected in the first come, first served process.

To be eligible to obtain a Retail Store Authorization, Applicants for a cannabis retail store to be located on a First Nations reserve must demonstrate that the Band Council has approved the location of the prospective cannabis retail store.

A Band Council Resolution must:

• Be uploaded as a requirement to complete the Retail Store Authorization Intent to Apply
• Approve the location of the store on the reserve

To receive a Retail Operator Licence or Retail Store Authorization for a cannabis retail store to be located on a First Nations reserve, a prospective operator must also meet all the requirements of the Cannabis Licence Act. 

For more information about the application process for operating a cannabis retail store on a First Nations reserve, please see the Application Process for a Cannabis Retail Store on a First Nations Reserve web page.

Fees and Payment

Licence and Authorization Fees

1. Fee
   • You must pay the required fee when you first apply for a cannabis retail-related licence or authorization.
   • The fees for a Retail Operator Licence, for a Retail Store Authorization or for a Cannabis Retail Manager Licence are for a two-year period, after which time you will have to renew them. 
   • Fee payments must be received by the AGCO before a licence or authorization application can be processed. If an application is withdrawn, or if the AGCO refuses to issue the licence or authorization for any reason, the fee is non-refundable. 
2. Renewal Fee
   • If you wish to continue operating your business or being employed as a retail manager, you will have to pay a renewal fee before your licence or authorization expires.
   • The renewal fee covers some of the ongoing costs of regulation, which includes activities such as inspection, and customer service support.
   • When you renew, you can select a two-year or four-year renewal term for any of the three licence or authorization types. There is no difference in the overall cost per year.
   • Fee payments must be received by the AGCO before a licence or authorization application can be processed. If an application is withdrawn, or if the AGCO refuses to issue the licence or authorization for any reason, the fee is non-refundable. 

Fee Payment

• When using online services, all payments under $30,000 must be made by Visa, MasterCard, Visa Debit or MasterCard Debit.
• Payments of $30,000 or more must be made by money wire transfer or electronic funds transfer. For more information, please contact AGCO Customer Service at 416-326-8700 or 1-800-522-2876.
• Cheques and cash are not accepted as forms of payment when using iAGCO online services. 
• Fee payments must be received by the AGCO before a licence or authorization application can be processed. If an application is withdrawn, or if the AGCO refuses to issue the licence or authorization for any reason, the fee is non-refundable. 
• Additional fees may be required for investigations.

For more information, visit the Fees and Payment section of this guide.

The Ontario Cannabis Store

The Ontario Cannabis Retail Corporation (OCRC), operating as the Ontario Cannabis Store (OCS), is the exclusive wholesaler of cannabis in Ontario to authorized private retail stores. Private retailers can only purchase cannabis from the OCS.  Retail store operators will be required to enter into a wholesale supply agreement with the OCS in order to begin purchasing cannabis for resale in their authorized stores. 

Retail store operators should contact the OCS once they have been issued their Retail Operators Licence from the AGCO.  For more information, visit learn.ocswholesale.ca or call 1-877-627-1627.

The following licences/authorizations are required for the operation of a cannabis retail store(s) in Ontario:

Retail Operator Licence

To operate a retail store and sell recreational cannabis, you must apply for a Retail Operator Licence. To get this licence, you must meet all of the eligibility criteria set out in the Cannabis Licence Act, 2018 and its regulations.

Eligibility

For full details on the eligibility requirements for a Retail Operator Licence, please refer to the Cannabis Licence Act, 2018, its regulations and the Registrar’s Standards.

Additionally, a person is not eligible for Retail Operator Licence:

• If the AGCO is not satisfied that you will exercise sufficient control, either directly or indirectly, over the cannabis retail business
• If you are in default of filing a tax return under a tax statute administered and enforced by the government of Ontario, or have any outstanding amounts owing and past due of tax, penalty or interest under those laws and have not made payment arrangements
• If you have a business number with the Canada Revenue Agency and have not filed a tax return under certain Federal or provincial legislation
• If the application will be made by a corporation and more than 25 percent of the corporation is owned or controlled, either directly or indirectly, by a licensed producer or their affiliate.   

All applicants and interested parties are subject to background checks as part of the eligibility review process.

For more information about Retail Operator Licence fees, see the Fees and Payment section of this guide.

Once approved, you will receive a Retail Operator Licence, which will contain your licence number, expiry date and any conditions on the licence.

Retail Store Authorization

To operate a cannabis retail store, you must have a Retail Store Authorization.

The submission of a Retail Store Authorization (RSA) application does not guarantee its approval. The determination that an RSA application satisfies requirements is made based on all information available at the time of issuance of the RSA.

The Cannabis Licence Act, 2018 and its regulations require that each store meet certain requirements. Requirements relate to such matters as the store layout and location.

The regulations also give residents of the municipality in which the proposed store would be located the opportunity to provide their input.

Before applying for a Retail Store Authorization, you must have submitted an application for a Retail Operator Licence or hold a Retail Operator Licence issued by the AGCO. 

A proposed Retail Store:

• Must be located in a municipality that permits cannabis retail stores.

• Cannot be located near a school or private school, as defined in the Education Act, if the proposed retail store is less than 150 metres away from the school. This will be determined as follows:
  • when the school or private school is the primary or only occupant of a building, 150 meters shall be measured from the property line of the property on which the school or private school is located. 
  • when the school or private school is not the primary or only occupant of a building, 150 metre shall be measured from the boundary of any space occupied by the school or private school within the building.

The distance between a proposed retail store and a school or private school is measured by a straight line from the closest point of the school property or boundary as described above to the closest point of the proposed retail store.

If either the store and/or the school is located on a floor other than the ground floor or main level in its respective building, the measure of the 150 metre distance may take into account the vertical distance in assessing compliance with this requirement.

The above rules do not apply if the private school is located on a reserve or if the private school only offers classes through the Internet.

All retail store locations will be required to undergo a 15-day public notice process. For more information, see the Public Notice for a Cannabis Retail Store Authorization section of this guide. The Public Notice process is not required for stores on First Nations reserves. The location of the store is approved by the Band Council.

For more information, see the Retail Store Location section of this guide.

Please refer to the Cannabis Licence Act, 2018 and its regulations for a list of full requirements.

Eligibility

For full details on the eligibility requirements for a Retail Store Authorization, please refer to the Cannabis Licence Act, 2018, its regulations and the Registrar’s Standards.

Some of the requirements for an applicant to be eligible for a Retail Store Authorization include:

• the applicant must not have made a false statement or provided false information in the application.

• the premises, equipment and facilities of the proposed store are not in compliance with the Cannabis Licence Act 2018, its regulations and the Registrar’s Standards
• the issuance of the authorization has been deemed to be in the public interest (i.e. protecting  public health and safety, protecting youth and restricting their access to cannabis, and preventing illicit activities in relation to cannabis).

A Licensed Producer and its affiliates are eligible to apply for a single RSA. The proposed cannabis retail store must be located on or within the site set out in the federally issued production licence.

For more information, see the Retail Store Authorization section of this guide.

For more information about Retail Store Authorization fees, see the Licence and Authorization Fees section of this guide.

Prior to starting a Retail Store Authorization application, we recommend that you:

• Contact the municipality where the store will be located and confirm that the proposed retail store meets local municipal requirements for retail store siting
• Ensure you have applied for or hold a Retail Operator Licence and have the application file number or licence number ready (both applications may be submitted at the same time)
• Review the Registrar’s Standards for Cannabis Retail Stores, the Cannabis Licence Act, 2018 and its regulations to ensure you understand the requirements for your store
• Ensure that the operating name of the proposed retail store complies with all applicable Federal/Provincial legislation related to advertising and promotion.

Cannabis Retail Manager Licence

A Cannabis Retail Manager licence is required by any individual of each retail store location and/or anyone who wish to perform one or more of the following functions in a cannabis retail store:

• Supervising or managing employees of a cannabis retail store;
• Overseeing or coordinating the sale of cannabis;
• Managing compliance issues in relation to the sale of cannabis;
• Having signing authority to purchase cannabis, enter into contracts or make offers of employment.

For more information, visit the Cannabis Retail Manager Licence section of this guide.

For full details on the eligibility requirements for a Cannabis Retail Store Manager Licence, please refer to the Cannabis Licence Act, 2018 and its regulations.

Some of the eligibility requirements that an applicant must meet include:

• Be at least 19 years of age
• Conduct their business (or their duties as retail store manager) in accordance with the law, and with honesty, integrity and in the public interest
• Have no convictions or charges under the Cannabis Licence Act, 2018, or certain sections of the Cannabis Control Act, 2017 and the Cannabis Act (Canada)
• Not have, or previously had, roles or connections with a criminal organization as defined in subsection 467.1(1) of the Criminal Code (Canada) (i.e. the applicant must not be, or have been, a member of the criminal organization; involved in the criminal organization; or contribute, or have contributed to, the activities of the organization)
• Not have made a false statement or provided false information in your application.

All applicants are subject to background checks as part of the eligibility review process.

For more information about Cannabis Retail Manager licence fees, see the Fees and Payment section of this guide.

To submit your online application, the following information will be required:

• Social Insurance Number
• Personal History for all employment and/or unemployment (including education, parental leave, etc.).  You must use the form provided in the online application.

Cannabis Retail Operators must keep an up-to-date record of each location for which their RMLs are accountable. The record must be made readily available for review upon the request of AGCO Inspectors.

In addition to requiring that Store Managers are licensed, under Ontario law, all cannabis retail employees, managers and store authorization holders are required to successfully complete an AGCO Board approved cannabis retail employee training program prior to their first day of work in the store.

This includes:

• Holders of a Retail Store Authorization;
• Holders of a Cannabis Retail Manager (Store Manager) licence;
• Any other individuals who work in a cannabis retail store.

CannSell is the required training for all Ontario cannabis retail employees.

The CannSell training program takes approximately 5 hours to complete and is delivered as an online program in both English and French at a cost of $64.99 + HST. Existing CannSell certificate holders can complete the standalone new content for $10.00 + HST. Individuals must score at least 80% on the final exam in order to successfully complete the program and receive their CannSell certification.

To take the CannSell training program, or for more information about the program, visit CannSell.ca

It is the responsibility of the holder of a Retail Store Authorization to ensure that all employees have met this educational requirement.

How to Apply for a Cannabis-related Licence or Authorization

Cannabis-related applications will be accepted online only via iAGCO.

iAGCO is the AGCO’s online service delivery portal that offers its customers a convenient and digital way of doing business with the Commission. To access services from the iAGCO portal, you must first create an account and login. 

Once an account has been created and you are logged in, the portal can be used to apply for, and manage and view the status of your cannabis-related licences and authorizations, including applications, renewals and modifications.

For more information on iAGCO, please visit the iAGCO Information page.

Applying for a Retail Operator Licence (ROL)

In addition to submitting an online application via the iAGCO portal, you will need to provide supporting information/documentation.

If you are applying for a Retail Operator Licence, prior to the Licence being issued (i.e. your licence cannot be issued without the required documentation):

1. Tax Compliance Verification (TCV) Confirmation Code
   Applicants must provide their Tax Compliance Verification (TCV) confirmation code.  For more information, please refer to the Tax Compliance Verification (TCV) Program.
2. Constituting Document(s)
   One or more of the following documents must be uploaded:
   • Certificate or articles of incorporation
   • Charter/By-Laws
   • Partnership Agreement
   • Limited Partnership Agreement
   • Limited Partnership Declaration
   • Shareholder’s Agreement
   • Trust Agreement
   • Any other constituting documentation relevant to the entity
3. Schematic Diagram
   If the corporate structure of the applicant has more than one level, a schematic diagram depicting the relationship among all parent, controlling, subsidiary, affiliated and commonly controlled companies is required.  In the case of a corporation, ownership identified must total 100%. 
4. Details of Shares
   A document listing all classes and series of shares in the entity. For each class/series, include its name, number of authorized shares, number of issued shares, any rights, privileges, restrictions, conditions as well as name of each shareholder who meet percentage threshold requirements set out for cannabis applicants.
5. Financial Statements
   Financial Statements (balance sheets, income statements, cash flow statements, etc.) for the last fiscal year. If available, please provide audited consolidated financial statements.
6. Tax Return and Tax Assessment
   A completed tax return and tax assessment for the last fiscal year available.
7. Personal History
   A Personal History (using the form provided on iAGCO) for all employment and/or unemployment (including education, parental leave, etc.) will be required from:
   • Applicants who are Sole Proprietors
   • Disclosed individuals.

   Please note, the Registrar will consider every application for a retail operator licence, and may;

   1. issue the retail operator licence, if the applicant has met the application requirements, is not ineligible and has paid the required fee
   2. issue the licence, with proposed conditions to be attached
   3. issue a proposal to refuse the application

If you receive a proposal to refuse your application, you may request a hearing/appeal before the Licence Appeal Tribunal (LAT). For more information on the LAT, please visit the LAT website.

Apply for an ROL 

Applying for a Retail Store Authorization (RSA)

To apply for a Retail Store Authorization (RSA), the applicant must either hold a valid Retail Operator Licence issued by the AGCO or have submitted an application for a Retail Operator Licence with the AGCO. Applications for both can be submitted at the same time.

A cannabis Retail Store must be the only business that operates out of the proposed location, and the business cannot also operate as a restaurant, coffee shop, pharmacy, convenience store, etc.  For more information, see Retail Store Requirements.

Licensed Producers

A Licensed Producer and its affiliates are eligible to apply for a single RSA. The proposed cannabis retail store must be located on or within the site set out in the federally issued production licence.

Business Requirements

For a Retail Store Authorization to be issued, certain business requirements must be in place prior to opening to ensure the store is ready to order, receive and appropriately secure cannabis products. For example, store operators are required to ensure:

• Cannabis and accessories will not be visible from the exterior of the premises
• A secure, high-resolution surveillance system will be in place at all times
• Cannabis will be stored securely at all times and be accessible only by staff

For more information on the standards and requirements for a cannabis retail store, please refer to the Registrar’s Standards for the Cannabis Retail Stores, the Cannabis Licence Act, 2018 and its regulations.

Required Documents

The following documents must be submitted prior to a Retail Store Authorization being issued: 

1. Business Name Registration 
   The business name under which you intend to operate may have to be registered under the Business Names Act. For information regarding business name registration please call toll free 1-800-361-3223 or visit Service Ontario. 
2. Proof of Ownership / Tenancy  
   Proof of Ownership / Tenancy (lease agreement, property deed, rental agreement etc.). 
3. Agreements not disclosed on the ROL application. See Supplementary Questionnaire for more information.

Additional information / documentation may be requested as required to determine eligibility for a Retail Store Authorization.

Pre-Authorization Inspection

Before a Retail Store Authorization can be issued, the store location will be inspected by an AGCO Inspectors to confirm/verify that all eligibility and store-specific criteria are met. During the pre-authorization inspection, AGCO Inspectors will provide you with information about your responsibilities under the Cannabis Licence Act, 2018, its regulations and the Registrar’s Standards, and address any operational questions and/or concerns you may have related to the retail sale of cannabis.

For more information, see the Retail Store Pre-Authorization/Opening Inspection of this guide.

Conditions

Retail Store Authorizations may be subject to conditions specified by the Registrar pursuant to the Cannabis Licence Act, 2018.

Please note that the Registrar will consider each application for a retail store authorization, and may:

1. issue the retail store authorization if the applicant has met the application requirements, is not ineligible and has paid the required fee
2. refuse the application.

The Registrar’s decision to issue or not issue a Retail Store Authorization is final. Relief may be sought by way of an Application for Judicial Review to the Superior Court of Justice.

Apply for an RSA

Applying for a Cannabis retail store manager licence (RML)

The following document(s) will be required before a Retail Store Manager Licence can be issued:

1. Personal History
   A Personal History (using the form provided on iAGCO) for all employment and/or unemployment (including education, parental leave, etc.) 
2. Tax Return or Tax Assessment
   A completed tax return and tax assessment for the last fiscal year available. 

Please note that the Registrar will consider every application for a retail store manager, and may:

1. issue the Retail Store Manager Licence, if the applicant has met the application requirements, is not ineligible and has paid the required fee or
2. issue the licence, with proposed conditions to be attached
3. issue a proposal to refuse the application

If you receive a proposal to refuse your application, you may request a hearing/appeal before the Licence Appeal Tribunal (LAT). For more information on the LAT, please visit the LAT website. 

Apply for an RML

This is the starting point for completing the monthly retail reporting.

Section A: Licence Information

The first field is for your Cannabis Retail Store Authorization Number (or CRSA) number. This field should only contain the letters “CRSA” followed by the 7 digits of your AGCO-issued licence number, with neither spaces, underscores nor number signs (#). If multiple licences were active for the same establishment in the relevant reporting period, submit separate completed reports for each licence, where each reflects only the portion of the reporting period in which that specific licence was active.

Section B: Reporting Period

Enter this section with the year and month that you are reporting. Answer by selecting from the drop-down menu in the cell. Ensure you are selecting the time frame of the reporting and not for the month that is currently underway for your licence.

After having filled Section A & B, a field “Please now Save as an Excel file named:” below them will show what your file should be named. Ensure the name used in this field is followed in the name of the file that you submit to AGCO. The data should represent all the retail activity of only the licence indicated in the filename, for the reporting period indicated in the filename during which this licence was active, and not include any activity during which a different licence was in use.

Section C: Report Correspondence Info

For a timely turnaround of the reports, it is important to provide the most up-to-date contact information for retail stores or their representatives. Answer this section by entering at least 2 different, current, validated, and responsive contact people. Two contacts are mandatory, and their validity should be checked every reporting period. You can also include up to 3 additional contacts. If the mandatory contact fields are left blank, we will revert to the previous period’s list.

Section D: Employee Count

Information in this section is required for federal reporting purposes. This information is specific to the total number of employees employed over the course of the reporting period by the authorized store. Employees are defined as persons who, during the reference period, were employed at the reporting facility, regardless of the number of hours worked. Definitions of the data fields required are as follows:

Please update these numbers each reporting period. Do not double-count employees across categories.

Section E: Data Selections

Answering questions in this section will enable report tabs and direct you as to what fields and tabs are required for your successful and complete submission. Use the drop-down option in column B to select answers to all questions instead of typing them. Please answer all questions that appear.

The first question about the store’s sales/inventory activity will determine if you need to complete any sub-report tabs at all. Answer “Yes” if the store had either sales activity or received inventory this reporting period. If you answer “Yes”, completion of at least the “Federal” and “Monthly Sales” sub-report tabs is required. If “No” is selected as an answer, the store with an active licence and no sales/inventory activity will need to save and submit this report. If the store has been very recently issued a licence by the AGCO, it is required to submit a completed report for that reporting period, even if the answer to this question was “No”. If a store is in the situation that it has received no inventory whatsoever and had no sales, and a reporting period ends, save this report file with the “No” selected, without proceeding to enter any data in the subsequent report tabs. In this specific scenario only, the report is now complete and is ready for submission. These “Nil” report submissions are required by the Federal government.

For the second question, “Do you give consent for the AGCO to also share the sales data on the “Monthly Sales” tab with the OCS?”, if you answer “Yes”, you are indicating that you give consent to the AGCO to provide this sales data to the OCS on your behalf. If you select “No”, you are indicating that you do not give consent to the AGCO to provide this sales data to the OCS on your behalf and acknowledge that you make other arrangements directly with the OCS. Keep in mind that this does not mean that the data cannot be sent to OCS; it means that you are taking care of that step yourself, without the assistance of the AGCO.

Completion of the rest of this section will determine what other detailed data will be required. The other questions in this section will only appear if answer “Yes” was selected for the first question, as they determine what data tabs are required based on the activities indicated that have occurred throughout the reporting period. For these other questions, if you answer “Yes”, you must complete a report in a corresponding tab. If your response is “No”, no activity is required on that tab. The tabs only become “visible” if a “Yes” is selected to the appropriate question, so if a tab that should have data on it does not appear editable, please review the answers to your questions in this section here first.

Section F: Data Input and Review

This section contains helpful suggestions and reminders. No selections need to be made. Please consult this information for effective use of the template.

Section G: Report Submission

The last section is about submission of reports. Once all issues have been reviewed and addressed, save the completed file, and submit it to the AGCO via the iAGCO Portal, ensuring that you use the same licence # that the file represents.

“Federal” sub-report tab

To participate in the Government of Canada’s Cannabis Tracking System, licensed retail operators must ensure that they properly track, report, and submit sales and inventory data to the AGCO monthly. To accomplish this, operators may wish to consider using a point-of-sale (POS) system that integrates or interfaces with an electronic or software-based perpetual inventory system that tracks all cannabis products that an authorized store purchases, stocks or sells.

The AGCO collects data from retailers to support the federal cannabis tracking system, established under section 81 of the Cannabis Act (Canada). This information is shared with the OCS, where wholesale and online inventory and sales data will be compiled with private retailer sales data and submitted to Health Canada and Statistics Canada on behalf of Ontario.

Please include all Sales and Inventory activity for all cannabis product (excluding accessories) for this reporting period, where each row is a sum of all activity for a specific SKU-UPC for that entire period (if a SKU changes UPCs over the course of the month, each of these SKU-UPC relationship should have its own data row on this tab). This “Federal” sub-report tab should be submitted as part of a completed Integrated Cannabis Retail Report, and not as a separate submission by itself.

Reporting Requirements

Complete the “Federal” sub-report tab for every complete reporting period, in compliance with the Data Definitions section and instructions outlined in this guide.

Cannabis products ordered/purchased during a reporting period, but not physically received by the authorized store until the following reporting period, can only be reported when the product is signed for and physically received into an authorized store’s inventory.

Cannabis products returned to the OCS are the responsibility of, and owned by, the authorized store until the OCS physically receives them. If an authorized store returns cannabis products to the OCS, and the OCS does not receive them before the end of the reporting period, the authorized store must account for, and report, those products as part of “Returns to OCS” in the subsequent reporting period where OCS received and acknowledged these returns.

Data Definitions

The following table details the required data elements associated with cannabis product(s) or stock received by an authorized store in the “Federal” sub-report tab in addition to definitions and formulas:

“Monthly Sales” sub-report tab

Reporting Requirements

Licensed cannabis retail stores must track and report on all relevant sales transactions for cannabis products purchased from the OCS. The “Monthly Sales” sub-report tab includes data elements associated with cannabis product(s) or stock received by, shipped from, or sold by an authorized store. It contains information that also satisfies operators’ commercial data obligations to the OCS.

Complete the “Monthly Sales” sub-report tab for every reporting period, in compliance with the Sales Data Definitions section and instructions outlined in this guide. Please include all Sales activity per date for the entire reporting period for all cannabis product (excluding accessories).

The “Monthly Sales” sub-report tab should be submitted as part of a completed Integrated Cannabis Retail Report, and not as a separate submission by itself.

The guidelines listed below must be followed when calculating values submitted in the Cannabis Monthly Sales Reporting:

• The “Monthly Sales” sub-report tab contains details of daily sales and on-hand inventory organized by OCS Product SKU for cannabis products that are purchased from the OCS.
• Systems should export opening inventory quantities for each Product SKU in inventory as of 12:01 am on the first day of the reporting period at the beginning of the report. The end of the report should include all closing inventory quantities for each Product SKU as of 11:59 pm am on the last day of the reporting period (this should include all SKUs that had any inventory presence over the course of the month).
• After opening inventory has been entered (and before the closing inventory section), sales data is only required for products that have transactions on a given day within the reporting period.
• Enter data into “Markdown Sales Price ($CA)” and “Quantity Sold - Markdown Units” when a transaction occurs at a price lower than its regular retail sales price. If product (SKU) was sold on the same day at different regular retail price points, then each of these price points should be recorded in separate rows. Do not average prices; rounding errors will result.
• After opening inventory has been entered, sales data is only required for products that have transactions on a given day within the reporting period.

Consent to Share the Sales Data

With your consent, the AGCO will share your completed report with the OCS to allow licensed retail operators to meet their reporting obligations under their OCS Retailer Agreement in a streamlined manner. To provide your consent, answer “Yes” to a corresponding question on the “Landing Page” of the Integrated Cannabis Retail Report. Licensed cannabis retail stores who do not consent to sharing their completed report are required to make arrangements to submit this report directly to OCS, by contacting OCS Client Services at 1-877-627-1627. For more information, please consult the OCS Retailer Handbook.

Sales Data Definitions

The following table details the required data elements associated with cannabis product(s) or stock received by an authorized store in the “Monthly Sales” sub-report tab in addition to definitions and formulas:

“Inventory Adjustments” sub-report tab

Please include all Inventory adjustments made in this reporting period for cannabis product (excluding accessories) to correct for discrepancies between physical inventories and the related inventory book quantity, including any receiving errors. Please ensure that the discrepancy type in column I is selected from the drop-down menu.

According to Standard 8.2 of the Registrar’s Standards for Cannabis Retail Stores, licensees must:

• complete full physical counts of all cannabis products monthly at a minimum or upon request of AGCO.
• maintain a log of the physical inventory count results.

If discrepancies are noted/identified based on the results of the monthly physical count, the licensee must prepare and submit a report to AGCO for all discrepancies identified between the monthly physical inventory count results and the related inventory quantity per record as of the date of the count.

This “Inventory Adjustments” sub-report tab should be submitted as part of a completed Integrated Cannabis Retail Report, and not as a separate submission by itself. Completion of this sub-report is not required if no inventory adjustments of cannabis products occurred during the reporting period.

Inter-store Transfer quantities should not be accounted for here.

Data Definitions

The following table details the required data elements associated with cannabis product(s) or stock received by an authorized store in the “Inventory Adjustments” sub-report tab in addition to definitions and formulas:

“Destructions” sub-report tab

Please include all Cannabis product that has been destroyed in this reporting period (excluding accessories but including any display quantities destroyed and any product designated to be destroyed). This should align with the destroyed quantities on the “Federal” sub-report tab. If product designated to be destroyed are waiting on OCS’s confirmations, those should be included, but with the clarification of “TBD” in the Destruction Date and Time columns.

As required under Section 3.1 of the Registrar’s Standards, licensees must destroy or render unusable cannabis products that are ineligible to be sold and ineligible for return to the OCS.

As required under Section 3.3 of the Registrar’s Standards, licensees must destroy monthly (at a minimum) cannabis products that are ineligible for sale.

As required under Section 8.1.2.d of the Registrar’s Standards, licensees must maintain and retain records for a minimum of three (3) years of all cannabis products destroyed.

This “Destructions” sub-report tab should be submitted as part of a completed Integrated Cannabis Retail Report, and not as a separate submission by itself. Completion of this sub-report is not required if no destruction of cannabis products occurred during the reporting period.

Data Definitions

The following table details the required data elements associated with cannabis product(s) or stock received by an authorized store in the “Destructions” sub-report tab in addition to definitions and formulas:

“Inter-Store Transfer—Incoming” sub-report tab

As required under Section 4.2 of the Registrar’s Standards, licensees who hold more than one retail store authorization may transfer cannabis products between their retail stores. The Standards further state that records of all movements of cannabis products between stores must be maintained.

Licensees must prepare a Report on All Inter-Store Transfers of Cannabis Products-Incoming for all incoming inter-store transfers made during the reporting period as part of a completed Integrated Cannabis Retail Report, and not as a separate submission by itself. Please include all cannabis product (excluding accessories) received from another store directly in this reporting period. Completion of this sub-report is not required if no incoming inter-store transfers of cannabis products occurred during the reporting period.

Data Definitions

The following table details the required data elements associated with cannabis product(s) or stock received by an authorized store in the “Inter-Store Transfer—Incoming” sub-report tab in addition to definitions and formulas:

“Inter-Store Transfer—Outgoing” sub-report tab

As required under Section 4.2 of the Registrar’s Standards, licensees who hold more than one retail store authorization may transfer cannabis products between their retail stores. The Standards further state that records of all movements of cannabis products between stores must be maintained.

Licensees must prepare a Report on All Inter-Store Transfers of Cannabis Products-Outgoing for all outgoing inter-store transfers made during the reporting period as part of a completed Integrated Cannabis Retail Report, and not as a separate submission by itself. Please include all cannabis product (excluding accessories) transferred to another store directly (and acknowledged to have been received by them) in this reporting period. Completion of this sub-report is not required if no outgoing inter-store transfers of cannabis products occurred during the reporting period.

Data Definitions

The following table details the required data elements associated with cannabis product(s) or stock received by an authorized store in the “Inter-Store Transfer—Outgoing” sub-report tab in addition to definitions and formulas: