How to Open a Cannabis Store in Ontario: 2026 Guide
How to open a cannabis store in Ontario in 2026: the three AGCO licences and their fees, location rules, the application steps, and how to get customers from day one.
Quick answer: To open a cannabis store in Ontario, you need three approvals from the Alcohol and Gaming Commission of Ontario (AGCO): a Retail Operator Licence ($6,000), a Retail Store Authorization for each location ($4,000), and a licensed store manager ($750, unless you are a sole proprietor managing the store yourself). The store must be in a municipality that allows cannabis retail and at least 150 metres from any school. All inventory is bought wholesale from the Ontario Cannabis Store (OCS).
What licences do you need to open a cannabis store in Ontario?
Ontario splits cannabis retail licensing into three pieces. The operator licence covers the business, the store authorization covers each physical location, and the manager licence covers the person running the floor. All three are issued by the AGCO and run on two-year terms.
| Licence | What it covers | Application fee (2-year term) | Renewal (2-year / 4-year) |
| Retail Operator Licence | The business entity that owns and runs the store | $6,000 | $2,000 / $4,000 |
| Retail Store Authorization | One specific store location | $4,000 | $3,500 / $7,000 |
| Cannabis Retail Manager Licence | The individual who manages the store | $750 | $500 / $1,000 |
Fees are non-refundable, even if the application is withdrawn or refused. A sole proprietor who manages their own store may not need a separate manager licence for that store. Source: AGCO licence and authorization fees.
Where can you open a cannabis store in Ontario?
Location rules are where most applications succeed or fail, so check them before you sign a lease.
- Municipality: Ontario municipalities had a one-time choice to opt out of cannabis retail. You cannot open in a municipality that opted out.
- School distance: The store must be at least 150 metres from any public or private school, measured in a straight line from the school's property line (or the space it occupies inside a shared building) to the closest point of your store.
- Public notice: When you apply for a store authorization, a notice is posted at the proposed location for 15 calendar days so the community can comment.
Source: AGCO retail store location rules.
How do you apply for a cannabis retail licence in Ontario?
Every application runs through the AGCO's online portal, iAGCO. The typical order is:
- Set up the business. Choose your structure, confirm who owns and controls it, and make sure every owner is in good standing on taxes. The AGCO reviews the people behind the business, not just the business.
- Apply for the Retail Operator Licence. Submit personal and entity disclosures and pay the $6,000 fee.
- Secure a compliant location. Confirm municipality and school distance before committing. Many operators sign leases conditional on AGCO approval.
- Apply for the Retail Store Authorization. Pay the $4,000 fee. The 15-day public notice runs at the location.
- Build out the store. Fit the space to the AGCO's Registrar's Standards for security, storage and display.
- License a manager and train staff. The manager needs a Cannabis Retail Manager Licence. Everyone who works in the store must pass AGCO-approved training before their first shift.
- Open your OCS wholesale account. The OCS is the only legal wholesale supplier for private stores in Ontario.
- Pass the final AGCO review and open. You can sell only once your store authorization is issued.
How much does it cost to open a cannabis store in Ontario?
Licensing for a first store comes to $10,750 ($6,000 + $4,000 + $750). That is the smallest line in the budget. Plan for these as well:
- Lease, deposit and leasehold improvements
- Security system, safe storage and cameras
- Point-of-sale (POS) system and payment processing
- Opening inventory from the OCS
- Staff wages and training during setup
- E-commerce, marketing and signage
- Three to six months of operating cash
What rules apply once your store is open?
- Hours: Stores may open to the public between 9 a.m. and 11 p.m.
- Age: No one under 19 may enter the store.
- Supply: All cannabis must come from the OCS.
- Training: Every employee, manager and delivery driver needs AGCO-approved training before their first shift.
- No inducements: Retailers may not ask for or accept payments, free goods or placement deals from licensed producers.
- Store cap: One operator and its affiliates can hold up to 150 store authorizations.
- Online orders: Stores can sell online for pickup and delivery, with deliveries handled by trained store staff.
How do new cannabis stores get customers from day one?
A new store competes with established stores that already rank on Google and have regular customers. The stores that ramp fastest are the ones shoppers can find and order from online on day one. That takes three things: a menu online with real stock and prices, a presence where shoppers already search, and a source of new traffic beyond walk-ins.
Poof gives Ontario retailers all three in one subscription:
- Your own e-commerce site on your domain, with a live menu pulled from your POS, pickup and delivery, and checkout on your own merchant account.
- A free listing on the poof.ca marketplace, which gets 20,000 to 30,000 monthly views from shoppers looking for products near them.
- Orders from the Poof retail ad network. Brands pay Poof to market their products. When a nearby shopper clicks, Poof sends the order to the closest store with stock. That can be you, at your price, with no margin taken.
Poof connects to Greenline and Cova, so most stores are live within a week. See how it works for retailers.
Frequently asked questions
How much is a cannabis licence in Ontario?
A first store costs $10,750 in AGCO fees: $6,000 for the Retail Operator Licence, $4,000 for the Retail Store Authorization and $750 for the Cannabis Retail Manager Licence. Each runs for two years before renewal.
Can I open a cannabis store anywhere in Ontario?
No. The municipality must allow cannabis retail, and the store must be at least 150 metres from any public or private school. The AGCO also posts a 15-day public notice at the proposed location.
Where do Ontario cannabis stores buy their products?
Private cannabis stores in Ontario must buy all cannabis wholesale from the Ontario Cannabis Store (OCS). Buying directly from producers is not permitted.
Do I need a manager licence if I run the store myself?
A sole proprietor who manages their own store may not need a separate Cannabis Retail Manager Licence for that store. Corporations need a licensed manager.
How many cannabis stores can one company own in Ontario?
An operator and its affiliates can hold up to 150 retail store authorizations. The cap was raised from 75 in January 2024.