Steps to permanently close a cannabis retail store | Alcohol and Gaming Commission of Ontario

If you are permanently closing your cannabis retail store, you can either:

Consent to transfer your Retail Store Authorization (RSA) to another holder of a Retail Operator Licence (ROL).
- For more information on transferring a RSA, see the Information Bulletin: Transfers of Retail Store Authorizations for Cannabis Retail Store Operators now permitted.
  
  Note: When the RSA transfers, any existing cannabis inventory transfers with the RSA.
  
  Or
Request to cancel your RSA and surrender it to the Registrar .

If you decide to request a cancellation of your RSA and surrender it to the Registrar, here are the steps to close your cannabis retail store:

1. Notify the AGCO within one to five business days before last day of operation

Party Responsible: Retailer

Inform the AGCO of your intent to permanently close your cannabis retail store in accordance with the AGCO Cannabis Regulatory Reporting Requirements .

Select the relevant Authorization → Submit a Regulatory Submission and/or Notification → "A Retail Store is Closing Permanently or Temporarily"
Answer the application questions, provide the necessary information and submit

Helpful Resources:

2. Submit a Request to Cancel in the iAGCO online portal

Party Responsible: Retailer

Select the relevant Authorization → Submit a Change → "Request to Cancel an Authorization"
Provide the necessary information and upload required documentation (e.g., signature form and/or Board Resolution)

Note:

An authorization holder who has requested a cancellation of their RSA may sell their cannabis to one other RSA holder if certain conditions are met.
Written notice of the sale must be provided in the Request to Cancel an Authorization Amendment.
If you intend to sell any remaining cannabis products to one other RSA holder, written notice of sale is collected in your cancellation request.

What to expect after your Request to Cancel is submitted:

An Eligibility Officer may reach out to obtain supporting documentation
An AGCO Inspector will contact you to confirm that the inventory of cannabis products has been, or will be, addressed in accordance with the Registrar's Standards (please see Steps 3 and 4 below for more information on available options).
An AGCO Inspector will also contact you to confirm that the authorization/retail seal has been, or will be, removed from the site.

Note:

If you provided written notice of the sale to the AGCO as part of your "Request to Cancel an Authorization", please see Step 4.

Helpful Resources

3. Manage your cannabis inventory

Party Responsible: Retailer

In accordance with Standard 1.10 of the Registrar's Standards for Cannabis Retail Stores, prior to the cancellation of a RSA, you must ensure that any cannabis left unsold or undistributed is sold, transferred or destroyed.

Therefore, any remaining cannabis must be either:

sold to customers
sold to one other RSA holder (you must disclose this in your request to cancel application in step 2; see step 4 for more details)
transferred to another retail store under your ROL
destroyed in accordance with the Registrar's Standards for Cannabis Retail Stores

For example, you are not permitted to remove your unsold or undistributed cannabis inventory from your retail store to your residence.

Ensure your cannabis inventory is zero/null in your Point-of-Sale (POS) system.

Note:

Authorized cannabis retailers are not permitted to take unsold cannabis products home.
All cannabis inventory must be tracked, stored, sold and distributed, and/or disposed of in accordance with provincial legislation and the Registrar's Standards for Cannabis Retail Stores.

Helpful Resources

4. Selling cannabis to one other RSA holder (if applicable)

Do you plan to sell any of the cannabis in the inventory of this store to another retail store authorization holder?

Party Responsible: Retailer, AGCO

If you provided written notice of the sale to the AGCO as part of the 'Request to Cancel an Authorization' Amendment in the iAGCO online portal, you and the purchaser will receive from the AGCO, written acknowledgement and more information on how to record the transaction in your POS system.

Please await this written communication before recording the transaction in your POS system to avoid data reconciliation errors.

The conditions that must be met for the sale to occur include:

The cannabis that is to be sold must be in the inventory of the cannabis retail store for which the request to cancel the RSA has been made.
Cannabis may only be sold to one other RSA holder. Sale to multiple RSA holders is not permitted.
No proposals to revoke or suspend the RSA or ROL of the seller and the purchaser have been issued.
Neither RSAs may be under suspension.
The RSA holder selling the cannabis must provide written notice of the sale to the AGCO as part of their request to cancel their existing authorization.
The cannabis must be sold in the packaging in which it was originally purchased from the Ontario Cannabis Store.

Helpful Resources

Proceed to Step 5

5. Prepare for AGCO Pre-Closing Inspection

Party Responsible: Retailer, AGCO

An inspection is required for all requests to cancel, to confirm no products are left onsite prior to cancellation, and that inventory is 0/null in the POS system.

To prepare for your AGCO pre-closing inspection, please ensure:

Cannabis products have been addressed appropriately through one of the means in step 3 and have been recorded accurately in your POS system
Confirm that your inventory is reflected as 0/null in your POS system
Removal of authorization/seal

Keep records of destruction or transfer for at least three years .

Helpful Resources

6. RSA Cancelled

Party Responsible: Retailer, AGCO

The RSA will be cancelled when:

The Registrar has received all supporting documents (e.g., signature forms and/or board resolution)
Cannabis products have been addressed appropriately (see step 3), and no cannabis products remain on site
Your cannabis inventory levels reflect 0/null in your POS system

You have now completed the steps to permanently close a cannabis retail store.

Disclaimer

Note: In the event of the non-renewal of an RSA, you must cease the operation of your cannabis retail store. The person who held the authorization must ensure cannabis left unsold or undistributed was either destroyed or transferred to another authorized retail store of the same licensed retail operator, in accordance with the Registrar's Standards for Cannabis Retail Stores, before the RSA expires.

For more information, contact AGCO Customer Service:

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