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 are used to determine whether a retail cannabis store is a separate business from any other commonly‐owned or affiliated business (non‐cannabis store): (Amended Apr 2020)
    1. (Deleted Jan 2022)
    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. (Deleted Apr 2020)

  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. (Amended Jan 2022)

 

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