3.1 Separate Business Requirements

Retail Cannabis Store Handbook

Policies

  1. A retail cannabis store licence will not be issued to an applicant unless the business, under which activities authorized by the licence will be carried out, is separate from any other business. The following factors (as listed in the Cannabis Separation of Business Document) are used to determine whether a retail cannabis store is a separate business from any other commonly‐owned or affiliated business (non‐ cannabis store):
    1. The retail cannabis store will operate as a separate business in accordance with Part 2 of Schedule 2 of the Gaming, Liquor and Cannabis Regulation.
    2. The retail cannabis store will operate as a separate viable business to make a reasonable profit for itself and will not be operated solely as a loss‐leader in support of any commonly‐ owned or affiliated business.
    3. The retail cannabis store licensee is incorporated as a separate company (unless it is a sole proprietorship, a co‐operative, or is prohibited by legislation).

      Note: Multiple retail cannabis stores may be operated by the separate company.
       
    4. Separate financial records are maintained for the retail cannabis store.
    5. A commercial relationship exists between the retail cannabis store and any other commonly‐owned or affiliated business for the purposes of leasing space, purchasing equipment, product or supplies, or other necessary services.
    6. Employees are hired by, and work for, the retail cannabis store.
    7. The retail cannabis store has management separate from that of any other commonly‐owned or affiliated business.

      Note: For the purpose of this policy, a business would be affiliated with another business if one controls or operates the other or if they are commonly controlled or operated.
       
  2. Applicants must submit a completed Cannabis Separation of Business Document upon each application for a new retail cannabis store licence or the purchase of an existing retail cannabis and upon renewal of the licence, if any changes to the document are made.

  3. A commercial relationship must exist between the retail cannabis store and any other commonly‐owned or affiliated business as per Subsection 3.1.1).

  4. Applicants must have a written agreement/contract in effect clearly stating the terms and conditions between the applicant and the commonly‐owned or affiliated business for the purposes of leasing space, purchasing equipment, product or supplies or any other necessary services. A copy of the written agreement/contract:

    1. must be submitted to AGLC for review if:

      1. the cannabis store is a new premises;

      2. the cannabis store is an existing licensed premises where a new licence is required as a result of a sale, assignment or transfer of the business; and

      3. the existing agreement/contract has amendments.

    2. does not have to be submitted to AGLC:

      1. for existing licensed premises when an application is being made for the issue of a new licence upon expiration of a current licence; and

      2. there are no changes to the existing agreement/contract.

 

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