Steps to become a cannabis retailer

Learn about the licensing journey to become a cannabis retailer.
 

1. Pre-Application Assessment

Party Responsible: Retailer

Before applying for an AGCO licence, prospective cannabis retail Applicants should:

  • consider the time it will take to meet requirements, such as acquiring insurance and setting up their banking accounts
  • review the AGCO licensing process
  • take note of which municipalities allow/prohibit cannabis retail stores

Applicants are encouraged to reach out to Ontario Cannabis Store (OCS) Client Services for more information on insurance and banking requirements.

Prospective applicants may also wish to consult the OCS' Ontario Cannabis Retail Market Heat Map .

AGCO Resources:

2. Apply for ROL on iAGCO

Party Responsible: Retailer, AGCO

To apply for a Retail Operator Licence (ROL), retail Applicants should check the requirements in the AGCO Cannabis Retail Regulation Guide. All applications are submitted on iAGCO, the AGCO’s online licensing portal.

There are a variety of factors that impact processing time of an ROL including, the complexity of the Applicant’s corporate structure, the complexity of any third party agreements, the number of interested parties, and the extent of the due diligence investigation required.

If an Applicant has entered into certain types of agreements, these should be disclosed at the time of applying for an ROL, where possible. Failure to disclose agreements early in the application process can slow down the review and issuance of an ROL.

AGCO Resources

3. Find a Suitable Retail Location

Party Responsible: Retailer

Prior to applying for a Retail Store Authorization (RSA), retail Applicants:

  • must obtain a lease for, or own, their store
  • must ensure their store is greater than 150m from a school (Submission of an application via iAGCO is not confirmation that the proposed retail store complies with the school proximity requirement). The 150 metre measurement may take into account the vertical distance from street level.
  • are encouraged to contact and work with the local municipality they wish to operate in
  • should determine whether the municipality has opted-in to cannabis retail, or if any zoning challenges exist for their prospective store

The AGCO does not perform manual school proximity reviews of proposed cannabis retail store locations, unless an applicant has attempted to apply and was notified on iAGCO that their proposed location is less than 150 meters from a school. It is the Applicant’s responsibility to ensure the proposed retail store location meets school proximity requirements.

AGCO Resources

4. Apply for RSA on iAGCO

Party Responsible: Retailer, AGCO

Once the retail Applicant has applied for their ROL and has found a location for the proposed retail cannabis store, they must submit their RSA application on iAGCO.

The submission of your RSA application does not guarantee its approval. The determination that an RSA application satisfies all requirements is made based on information available at the time of issuance of the RSA and not at the time of submission of the application through iAGCO.

Applications are reviewed in order of receipt. There are a number of factors that impact processing time of an RSA including, but not limited to, the Applicant’s responsiveness in providing required information, how soon the Applicant is taking possession of their proposed store in order to undergo public notice, the volume of written submissions received during public notice / types of issues raised, the complexity of any third party agreements, the number of interested parties, and the time the Applicant takes to build out their store to a point of readiness for inspections.

AGCO Resources

5. ROL Issued

Party Responsible: AGCO

If the application meets all requirements, the AGCO will send the Applicant an automated email and issue an ROL.

As a licence holder, you must comply with your regulatory obligations under the Cannabis Licence Act, 2018, its Regulation, and the Registrar’s Standards. This includes, but is not limited to, notifying the AGCO of new or changes to agreements, changes to corporate structure, and charges, convictions, and/or findings of guilt under any legislation.

AGCO Resources

6. Contact OCS Client Services

Party Responsible: Retailer, OCS

Once the Applicant receives their ROL from AGCO, the Applicant:

  • can contact OCS to begin to receive resources about working with the provincial cannabis wholesaler
  • will sign a non-disclosure agreement with the OCS to begin receiving business information, review OCS wholesale pricing, and begin developing a merchandising strategy.

OCS Resources

7. Validate/Update Business Plan and Review Regulatory Requirements

Party Responsible: Retailer, OCS, AGCO

Upon receiving information about working with the OCS the Applicant:

  • is encouraged to continue to build out their business plan and merchandising strategy
  • may reach out to OCS to receive high-level support for these activities

Furthermore, while the RSA application is in review, Applicants are encouraged to review their licensing and reporting requirements.

AGCO Resources

OCS Resources:

8. Public Notice Posting Period

Party Responsible: Retailer, AGCO

Public Notice is an opportunity for the municipality and residents of the municipality in which the proposed store is located to make written submissions to the Registrar as to whether the issuance of the RSA is in the public interest. The applicant can enter the public notice period only once they have taken possession of their proposed store location.

The AGCO will determine the dates of the posting period (15 calendar days) and will email the Public Notice placard (in PDF format) to the Applicant.

The Applicant is required to post several copies of the Public Notice placard at their store location in full public view for 15 days as identified on the placard. The application will also be searchable on iAGCO for submissions to be made during the 15 day period and the AGCO will Tweet about the application.

Failure to post the Public Notice for the required period of time will result in a delay in the processing of the application and may result in reposting the Public Notice for a further 15 days.

AGCO Resources:

9. Public Notice — Written Submissions

Party Responsible: AGCO, Retailer

Once the public notice period has ended, the AGCO will provide the Applicant with copies of any submissions received. An Applicant can expect to receive copies of submissions within 10 business days after the submission deadline.

Applicants have 5 calendar days, from the time written submissions are sent to them, to provide the Registrar with a response to submissions from local residents and from the municipality.

The Registrar will review submissions as well as the Applicant's response.

AGCO Resources

10. Retailer Education

Party Responsible: AGCO, Retailer

An AGCO Inspector is assigned to the retail Applicant. The Inspector will reach out to the Applicant to schedule an education session. The Inspector will provide information to the Applicant on the cannabis regulatory framework, and requirements under the Registrar's Standards in relation to the pre-authorization and pre-opening inspection criteria. The Inspector is available to provide ongoing retailer education.

AGCO Resources:

11. Pre-Authorization Inspection

Party Responsible: AGCO, Retailer

Working with the Applicant, the Inspector will schedule and conduct a pre-authorization inspection of the store to ensure compliance with AGCO regulations and standards and to confirm the Applicant is using or will be using an integrated POS provider. This inspection (virtual or physical) takes approximately 1 hour to complete.

AGCO Resources:

12. Approval of RSA Application

Party Responsible: AGCO

The AGCO will make a decision on whether to approve the application when:

  • The Applicant has been issued a ROL
  • The Public Notice process is complete, including consideration of submissions and Applicant's response
  • The pre-authorization inspection requirements have been met
  • All supporting application documents and activities have been reviewed/completed

If the Deputy Registrar has made a decision to approve the application a final school proximity review will take place prior to issuing the Retail Store Authorization.

The AGCO will issue RSAs as applicants meet the application requirements and at the pace directed by the government, which is currently a maximum of 30 RSAs per week.

13. RSA Issued

Party Responsible: Retailer, AGCO

Once the AGCO issues the RSA, an automated email from iAGCO will be sent to the Retailer that contains helpful information, and their RSA attached.

The email will provide access to the Cannabis Retail Seal. The seal must be displayed in a conspicuous place that is visible from the exterior of the public entrance to the cannabis retail store, and if the holder uses a website, app or other similar online platform for the purpose of the cannabis retail store, the seal must be prominently displayed on the website, app or platform.

The email will also include additional information directing licensees to the OCS when they are ready for onboarding. A Retailer is not permitted to order product from the OCS until they receive their RSA and have been onboarded as an OCS Wholesale Retailer.

As an authorization holder, you must comply with your regulatory obligations under the Cannabis Licence Act, 2018, its Regulation, and the Registrar’s Standards, including reporting requirements.

AGCO Resources:

14. Enter into Commercial Agreement with OCS

Party Responsible: OCS, Retailer

To initiate the OCS onboarding process, the Retailer must contact the OCS. As part of this process, the Retailer is required to enter into a Retail Agreement with OCS, set up their OCS wholesale portal account, engage their point of sale (POS) provider to integrate their in-store POS system with the OCS Data Reporting Platform, and undergo OCS training.

For any inquiry regarding the OCS onboarding process, please contact OCS Client Services.

OCS Resources:

15. Open Store

Party Responsible: Retailer

The Retailer has completed the retailer licensing process and is permitted to open their store to the public.

Retailers must:

  • display the Provincial Retail Seal in accordance with section 19 of O. Reg. 468/18.
  • comply with retail reporting requirements, the Registrar's Standards and all applicable regulations and legislation.

AGCO Resources:

16. Retail Reporting and Ongoing Education

Party Responsible: Retailer, AGCO

The Registrar's Standards for Cannabis Retail Stores (Standard 1.6) require operators (Retailers) to comply with notification requirements, including meeting the required timeframes for submission. The AGCO has an e-learning learning module (License Key: 8444-6196-1617-3306) resource available to operators to help them meet their reporting obligations and to learn about how to complete, troubleshoot, and submit reports. Failing to submit accurate and complete reports within the required timeframe is a breach of the Registrar's Standards and may result in regulatory action. Please see the Cannabis Retail Regulation Guide for more information on retail reporting.

To make it easier for cannabis Retailers to delegate regulatory reporting to their staff, the AGCO is providing Retailers with the option to set up a store-specific iAGCO account for reporting purposes.

AGCO Inspectors may visit the retail store location at any time to confirm compliance with the Cannabis Licence Act, 2018, its regulation and Registrar's Standards for Cannabis Retail Stores. They will also be available for education inquiries upon request.

Cannabis Retailers must facilitate inspections by:

  • cooperating fully with AGCO Inspectors.
  • answering questions honestly.
  • producing records and assisting in interpretation of that record.
  • allowing Inspectors to enter the premises, review records, take photos, and carry out their duties without interference.

For details on what Inspectors are authorized to do and your obligations as a licensee during an inspection, see sections 28 (Inspections) and 37 (Obstruction) of the Cannabis Licence Act, 2018.

AGCO Resources

 

Disclaimer:
 

Note: While the process is laid out in a linear fashion, some steps may occur in a different order. The journey map is meant to capture the process at a high level. Timelines indicated in the document are estimates and may vary for each retail Applicant.

Note: Anyone wishing to operate a store on a First Nations Reserve or any Licensed Producer interested in operating a retail store should contact the AGCO and OCS for details on their respective licensing application process.

Note: As an Applicant, it is your responsibility to ensure your proposed retail store meets school proximity and all other requirements at all times throughout your entire application review. Applications are location specific. Any changes to your proposed store address from what is identified on the application will require a new RSA application.

AGCO contact information:
Anytime via the iAGCO online portal
or Mon-Fri 8:30am-5:00pm
416-326-8700 / 1-800-522-2876 (toll-free in Ontario)

OCS contact information: 
OCS Client Service Centre
1-877-627-1627

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