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So You Want To Open An Authorized Cannabis Retail Store

By February 11, 2020 October 15th, 2020 No Comments

Interested in opening an authorized cannabis retail store in Ontario? Here is some key information to know about working with the OCS before you get started:

How do I apply for a license?

The Alcohol and Gaming Commission of Ontario (AGCO) is responsible for the issuance of cannabis Retail Operating Licenses (ROL) and Retail Store Authorizations (RSA) in the Province of Ontario.

To learn more about the licensing process to become an authorized cannabis retail store operator (Authorized Retailer)  visit the AGCO’s website.

Working with the Ontario Cannabis Store

Once  licensed as an Authorized Retailer by the AGCO, you can begin to work directly with the Ontario Cannabis Store (OCS) to prepare for the opening of your authorized cannabis retail store.

Purchasing Cannabis and Accessories

The OCS is the exclusive wholesaler of cannabis products to Authorized Retailers in Ontario. The OCS offers a wide assortment of legal and tested cannabis products procured through federally Licensed Producers. Authorized Retailers are permitted to only purchase cannabis products from the OCS. Authorized Retailers are required to enter into a wholesale supply agreement (Retailer Agreement) with the OCS in order to begin purchasing cannabis products for resale in their authorized cannabis retail stores.

Accessories are also sold through the OCS. Unlike with cannabis products, the OCS is not the exclusive wholesaler of accessories in Ontario. However, buying accessories from OCS Wholesale will allow you to easily order and receive accessories along with your wholesale cannabis order, which should result in efficiencies in delivery cost and time in the ordering and receiving process.

Pricing

Authorized Retailers will be given access to wholesale pricing rates for the purchase of cannabis products and accessories once they have entered into the Retailer Agreement.

Order Information 

For each authorized cannabis retail store an Authorized Retailer is permitted to operate, they will be permitted to make an initial purchase of up to 100 kg of cannabis products for each specific store’s opening. That order will be subject to product availability and an allocation process to ensure fair access and distribution among all Authorized Retailers.

The amount of product required on a weekly basis is dependent on a number of factors including geographic location.

Payment

Authorized Retailers are required to pay for their orders in advance of their delivery date. When you order wholesale products from OCS, you will be required to pay for the order before it can be shipped to you. Once we have fully set up and confirmed your banking information, we will initiate a pre-authorized debit (PAD) process.

The PAD is utilized to take payment for your order once it has been placed.

Delivery of Products

The OCS will arrange the shipping of cannabis products and accessories purchased from the OCS to Authorized Retailers and will apply a standard shipping rate for all Authorized Retailers across the Province. The rate will be reviewed regularly and may be adjusted at the sole discretion of OCS.

Still have questions? Please email us for more information.