How do I get my cannabis retail store authorized?

To apply for an RSA, you must have already applied for an ROL with the AGCO (or hold a valid ROL if it has already been issued). Applications for both an RSA and ROL can be submitted at the same time, but the ROL will be issued before the RSA is granted. The AGCO’s fee for a Retail Store Authorization is $4,000 CAD. This fee is required to be paid upon submission of the application, and it is generally non-refundable. To be eligible for a Retail Store Authorization, the following criteria should be met since there are some places where you cannot open a cannabis retail store: Ensure you have applied for, or hold, a Retail Operator Licence; Ensure the proposed location for your retail store is more than 150 metres away from the property line of a school or private school; Contact the municipality where the store will be located and confirm that the proposed retail store meets local municipal requirements for retail store siting; Review the Registrar’s Standards for Cannabis Retail Stores 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. For farmgate cannabis retail in Ontario, licensed producers (or one of its affiliates) are eligible to apply for a single RSA. In this case, the proposed cannabis retail store must be located on or within the site set out in the federally issued production licence. After you have submitted an ROL and RSA, you can move on to apply for a Cannabis Retail Manager Licence (see below).

What are the cannabis act rules for operating a cannabis 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 of the week display the official cannabis retail seal. The seal must be placed where people can easily see it from outside the store entrance. The seal must be at least 17 centimetres wide and 20 centimetres long. You can choose 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. Private retailers can only purchase cannabis from the Ontario Cannabis Store (OCS) 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 obtain criminal background checks from employees as part of the hiring process ensure all licensed managers and other employees working in your store successfully complete the required Board approved training program (CannSell) 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 display your cannabis and accessories in a way that they cannot be seen by a young person, even from outside 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 appears 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 sell cannabis or cannabis accessories from a display that allows self-service, or from a vending machine

Is Farmgate cannabis a sustainable and environmentally friendly option?

Farmgate cannabis can be a sustainable option as it often involves fewer transportation miles, reducing the environmental impact associated with cannabis distribution.

How can consumers find Farmgate cannabis operations in their area?

Consumers can typically find information about local Farmgate cannabis operations through online directories, government websites, or by contacting cannabis regulatory agencies.

Are there any specific safety measures or quality control standards for Farmgate cannabis products?

Farmgate cannabis operations are typically subject to quality control and safety standards set by regulatory authorities to ensure consumer safety.

Can consumers visit Farmgate cannabis facilities, or are sales exclusively online or through delivery?

The availability of in-person visits to Farmgate cannabis facilities depends on local regulations. Some operations may allow on-site visits, while others may focus on online or delivery sales.

Are there limitations on the types of cannabis products that can be sold through Farmgate operations?

Regulations may dictate which types of cannabis products can be sold through Farmgate operations. These restrictions can include product potency and form.

Do Farmgate cannabis operations have the same regulatory requirements as traditional dispensaries?

Regulatory requirements can vary, but Farmgate operations typically have their own set of regulations and licensing requirements specific to direct-to-consumer sales.

What are the advantages of purchasing Farmgate cannabis?

Advantages of Farmgate cannabis may include access to fresher products, supporting local cannabis growers, and potential cost savings by eliminating retail markups.

Is Farmgate cannabis legal in all jurisdictions where cannabis is legalized?

The legality of Farmgate cannabis varies by jurisdiction. Some regions permit direct sales from cultivators, while others may have restrictions or licensing requirements.

What is Farmgate cannabis, and how does it differ from other cannabis distribution models?

Farmgate cannabis refers to the sale of cannabis and cannabis products directly from licensed cultivators or micro-cultivators to consumers, bypassing traditional retail dispensaries.

What types of products are commonly sold through Farmgate operations?

Farmgate operations can sell a wide range of products, including fresh produce, eggs, dairy products, meat, flowers, and other farm-fresh items.

Why is the concept of "Farmgate" important in agriculture and local food systems?

Farmgate sales promote local agriculture, support farmers, reduce the carbon footprint associated with long supply chains, and allow consumers to access fresh, locally grown products.

What is a "Farmgate" in the context of agriculture and farming?

A "Farmgate" refers to the point of sale or distribution directly from a farm or agricultural producer to consumers, typically without intermediaries like wholesalers or retailers.

What is a cannabis farmgate operation?

A cannabis farmgate operation refers to a licensed facility where cannabis producers can sell their products directly to consumers on the premises of their cultivation site. It allows consumers to purchase cannabis products directly from the source, promoting transparency and supporting local businesses.

Everything You Need to Know About Farmgate Cannabis Retail in Ontario

February 24, 2023
11:14 am
Provincial Retail
Canada

Farmgate cannabis retail in Ontario

This is the new hot topic as of recently. Ontario was the first province to allow farmgate cannabis sales, we’re now seeing licensed producers at various stages of getting their Ontario farmgate retail license.

The farmgate cannabis retail program is a set-up that is very similar to a vineyard. In this setup, a licensed producer of cannabis will have a production site that also includes a storefront to allow customers to purchase cannabis products directly from the producer.

The farmgate model is a great opportunity for licensed producers to create jobs in their community, increase revenues, and educate consumers on the production process and work that goes into creating a high-quality product. The Alcohol and Gaming Commission of Ontario (AGCO), regulating cannabis retail in Ontario, says they have received 14 Retail Operator Licence applications (see below for more information on licenses/authorizations) for farmgate sales, with six of them being approved for the following producers: Canopy Growth subsidiary Tweed Inc.

Thrive Cannabis, Dykstra Greenhouses, Medz Cannabis Inc., Muskoka Grown Ltd., and Level Up Infusions. As of just a few weeks ago, licensed cannabis producer, Thrive Cannabis, announced that their retail store (located at their indoor and outdoor production site in Jarvis, Ontario), will be the first farmgate cannabis store in the province and, by extension, all of Canada. Thrive Cannabis has received it’s Retail Store Authorization (RSA), which is the authorization issued by the AGCO that is required to open a legal cannabis store in Ontario, and its store has been open as of April 23^rd, 2021.

Licenses and Authorizations Needed for Ontario Farmgate Cannabis Retail

To open and operate a cannabis retail store and sell recreational cannabis, there are two licenses and authorization that you are required to secure from the Alcohol and Gaming Commission of Ontario (AGCO).

Retail Operator Licence

The Retail Operator Licence (ROL) is the first license you need to apply for. You can apply for this license as an individual/sole proprietor, a partnership, or a corporation. The ROL will confirm that you meet the eligibility criteria set out in the Cannabis Licence Act and its regulations. The AGCO’s fee for a Retail Operator Licence is CAD 6,000.

This fee is required to be paid upon submission of the license application, and it is generally non-refundable. For more information on ROLs, click here. Generally, the ROL application takes a few months to process as it includes police and background checks, which will be conducted on applicants, and persons interested in the applicant (such as third parties involved in the project), as needed, to determine eligibility for the issuance of the license. Sometimes, AGCO officers may reach out to request additional information as it’s needed.

After all of the necessary information has been provided and the application has passed a due diligence check, you will receive a Retail Operator Licence, which will contain your license number, expiry date, and any conditions on the license (such as the requirement to notify the AGCO within 5 business days of any change in corporate structure or sources of funding).

Retail store operators will be required to enter into a wholesale supply agreement with the Ontario Cannabis Store (OCS) to begin purchasing cannabis for resale in their authorized stores. Once an ROL from the AGCO has been issued, the AGCO will share your contact information with the OCS so that they can reach out to get started on the wholesale supply agreement.

You do not have to wait for your ROL to be issued to apply for a Retail Store Authorization. After your ROL application has been submitted, your proposed retail store location (in the case of Farmgate retail, this would be located at your cannabis production site) must qualify for a Retail Store Authorization (see below), which confirms the store meets the location, layout, security and other requirements described in the regulations and standards.

Retail Store Authorization

To apply for an RSA, you must have already applied for an ROL with the AGCO (or hold a valid ROL if it has already been issued). Applications for both an RSA and ROL can be submitted at the same time, but the ROL will be issued before the RSA is granted. The AGCO’s fee for a Retail Store Authorization is CAD 4,000.

This fee is required to be paid upon submission of the application, and it is generally non-refundable. To be eligible for a Retail Store Authorization, the following criteria should be met since there are some places where you cannot open a cannabis retail store:

Ensure you have applied for, or hold, a Retail Operator Licence;
Ensure the proposed location for your retail store is more than 150 meters away from the property line of a school or private school;
Contact the municipality where the store will be located and confirm that the proposed retail store meets local municipal requirements for retail store siting;
Review the Registrar’s Standards for Cannabis Retail Stores 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.

For Farmgate cannabis retail in Ontario, licensed producers (or one of its affiliates) are eligible to apply for a single RSA. In this case, the proposed cannabis retail store must be located on or within the site set out in the federally issued production license. After you have submitted an ROL and RSA, you can move on to apply for a Cannabis Retail Manager Licence (see below).

Cannabis Retail Manager Licence

A Licensed Retail Manager is required at every cannabis retail store in Ontario. The Retail Manager is responsible for performing tasks such as:

supervising, managing, or hiring employees of the store;
managing the sale of cannabis;
managing compliance issues relating to the sale of cannabis;
buying cannabis for the store;
entering into contracts for the store.

The only exception to this requirement is if the Licensed Retail Operator is a sole proprietor or is in a partnership between two or more individuals, and will be both the Licensed Operator and performing the duties of the retail store manager for a particular store – in which case a Cannabis Retail Manager Licence is not required. The AGCO’s fee for a Cannabis Retail Manager Licence is CAD 750. This fee is required to be paid upon submission of the application, and it is generally non-refundable.

Next Steps?

After your ROL and RSA have been submitted, the next step is the Public Notice Process and store inspections by the AGCO. Before your Farmgate cannabis retail store can open for business, the store location must be inspected by an AGCO Compliance Official on two separate occasions to confirm that all eligibility and store-specific requirements are met.

The first inspection is called a Retail Store Pre-Authorization Inspection, which is conducted before a Retail Store Authorization is issued. The second inspection is a Pre-Store Opening Inspection, which will be done before the opening of the store.

More information on these inspections can be found here. Once your Cannabis Retail Store Authorization application is submitted, the AGCO will reach out and advise you on the dates of the public notice posting period, which lasts for 15 calendar days. The AGCO representative will email you the Public Notice placard for you to post visibly on the Farmgate store front.

The placard period does not need to be completed before your first inspection can be scheduled (i.e. an inspection can be scheduled as soon as the placard has been posted, based on your readiness for your store to be inspected). Successful completion of the Retail Store Pre-Authorization Inspection will enter your application into the queue for RSA issuance.

Your RSA, once issued, may include certain terms and conditions the licensed Retail Operator must comply with before the store is open to the public. After that, successful completion of the Pre-Store Opening Inspection will allow your store to open for business! It should be noted that Compliance Officials may visit your retail store location at any time to confirm compliance with the Cannabis Licence Act, 2018 regulations, and Registrar’s Standards. Below are some 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 of the week
display the official cannabis retail seal. The seal must be placed where people can easily see it from outside the store entrance. The seal must be at least 17 centimeters wide and 20 centimeters long. You can choose 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. Private retailers can only purchase cannabis from the Ontario Cannabis Store (OCS)
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
obtain criminal background checks from employees as part of the hiring process
ensure all licensed managers and other employees working in your store complete the required Board approved training program (Cannell) 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 before allowing them to enter the store
display your cannabis and accessories in a way that they cannot be seen by a young person, even from outside 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 appears intoxicated
sell more than 30 grams of dried cannabis (or an equivalent amount of another kind) to a person in a single visit
hire anyone who is under 19 years of age
sell cannabis or cannabis accessories from a display that allows self-service, or from a vending machine

Click here and refer to Section 9.0 to learn more about the requirements for these new measures. We hope the information above gives you a solid understanding of how licensed producers can open a Farmgate cannabis retail store, including all the steps involved in the application process, as well as the requirements that must be met once you’re up and running.

How does the licensing process work for cannabis farmgate operations? The licensing process for cannabis farmgate operations involves applying for a specific license with the regulatory authority in your jurisdiction. This process includes submitting detailed documentation, security plans, and compliance strategies. It’s crucial to meet all the regulatory requirements and undergo inspections before receiving approval.

What products can be sold at cannabis farmgate operations? Cannabis farmgate operations can sell a variety of cannabis products, including dried flower, pre-rolls, oils, tinctures, edibles, and topicals. The specific product offerings may vary based on the producer’s license and local regulations.

Can I consume cannabis products on the premises of a cannabis farmgate operation? Regulations regarding on-site consumption vary by jurisdiction. Some regions allow on-site consumption areas at farmgate operations, while others prohibit it. It’s essential to check local laws and regulations to determine whether on-site consumption is permitted.

What is Farmgate Ontario? Farmgate Ontario is a government-initiated program that allows licensed cannabis producers in Ontario, Canada, to sell their products directly to consumers through on-site retail stores, commonly known as Farmgate Ontario retail stores. These stores are located on the premises of licensed cannabis producers, offering consumers a unique opportunity to buy products directly from the source.

Can anyone purchase cannabis products from Farmgate Ontario retail stores? Yes, anyone who meets the legal age requirement for purchasing cannabis in the respective region can buy products from Farmgate Ontario retail stores. Customers need to provide valid identification to prove their age and comply with local regulations.

How does Farmgate Ontario benefit local communities and producers? Farmgate Ontario promotes local businesses and the economy by supporting licensed cannabis producers in Ontario. It creates jobs, boosts tourism, and encourages sustainable agriculture practices. Additionally, it enhances transparency in the cannabis supply chain by allowing consumers to connect directly with producers.

Q8: Can I return cannabis products purchased from Farmgate Ontario retail stores? A8: Return policies for cannabis products vary by store and are often subject to specific conditions. Generally, cannabis products cannot be returned once purchased, except in cases of product defects or recalls. It’s essential to check the store’s policies before making a purchase.

How we can help you

Cannabis License Experts is your solution to preparing, reviewing, and submitting your cannabis retail license application. We offer support from day one of starting your cannabis business, including strategic planning, floor plan preparation, site audits, SOPs, and more.

Resources

https://www.agco.ca/content/retail-store-pre-authorizationopening-inspection https://www.agco.ca/book/export/html/19736

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