What do I need to do to sell a convenience store in Ontario?

This page covers Ontario only. A convenience store is not licensed as one thing. Each product category it sells can sit under a different permit or licence, and each one has its own paperwork when the owner changes. Under Ontario’s Tobacco Tax Act, no person may sell tobacco products to a consumer without a retail dealer’s permit. The Alcohol and Gaming Commission of Ontario, known as the AGCO, issues the convenience store licence that lets an eligible store sell beer, wine and ready-to-drink alcohol, and OLG says a licence from the AGCO is required to sell OLG lottery tickets and games. The Smoke-Free Ontario Act, 2017 requires prescribed signs where tobacco or vapour products are sold. Which of these apply depends on what your store actually sells, so start by listing them.

The tobacco retail dealer’s permit

Section 3.1(1) of the Tobacco Tax Act says no person shall sell, offer to sell, deliver or cause to be delivered in Ontario a tobacco product to a consumer unless the person holds a retail dealer’s permit issued under that section. The Ministry of Finance’s licences and permits FAQ says the permit is issued by the ministry’s Account Management and Collections Branch. Under section 3.1(3), the Minister issues the permit to an applicant who satisfies the prescribed criteria. Because section 3.1(1) applies to any person who sells tobacco products to consumers, a buyer who will do so needs to hold a permit issued under that section. Ask the ministry how it wants a change of owner handled before closing, rather than assuming the seller’s permit carries over.

Telling the ministry about the sale

Section 3.1(4) of the same Act says a person who holds a retail dealer’s permit shall forthwith notify the Minister in writing of all changes in the name or nature of the person’s business or of the termination of the business. If you are the permit holder and the store is changing hands or closing under your name, put that written notice on your closing list. Section 3.1(9) makes failing to comply with subsection (4) an offence. Ask the ministry, in writing, what it needs from both the seller and the buyer so the permit position is clear on the closing date.

The alcohol licence, if the store has one

If the store sells alcohol under an AGCO convenience store licence, the AGCO’s page on managing a convenience store or grocery store licence says a transfer of licence is required if a different person wishes to acquire the licence. It says you can transfer your licence to someone else provided that the regulatory requirements are met, subject to the approval of the AGCO, and that the person interested in taking over the licence will need to submit the transfer application. The same page says you are required to notify the AGCO of any changes to your business, including changes to the ownership and/or management, and that new individuals with decision-making authority or supervisory responsibility for alcohol sales must provide Personal Disclosure information. For the buyer’s side, see buying an Ontario store that sells alcohol.

Who answers for alcohol sales, and closing instead of selling

The AGCO’s page says that once a licence is issued, it is the licensee’s responsibility to operate the store and sell alcohol responsibly in accordance with the Liquor Licence and Control Act, 2019, the regulations, the standards and requirements established by the Registrar and any conditions attached to the licence. The page does not say whether a buyer may sell alcohol before the transfer is approved, so ask the AGCO in writing what it allows between signing and approval. If you close the business or no longer want to sell alcohol, the same page says you must surrender your licence to the AGCO and submit a Voluntary Surrender of Licence through iAGCO.

OLG lottery and the Smoke-Free Ontario signs

The OLG states that a licence from the AGCO is required to sell OLG lottery tickets and games. OLG’s retailer page also says a security deposit may be required for equipment and ticket sales, and that it requires property and comprehensive general liability insurance for installed lottery equipment and games. Ask OLG how it handles a change of retailer, and what it needs from each side. Separately, section 7 of the Smoke-Free Ontario Act, 2017 says no person shall sell or offer to sell tobacco products, vapour products or a prescribed product or substance at retail unless the prescribed signs are posted in the prescribed manner. Leave the signs up through the handover.

• List every category the store sells that is tied to a permit or licence: tobacco, alcohol, lottery.
• Ask the Ministry of Finance what it needs from you and from the buyer on the retail dealer’s permit, and give the written notice section 3.1(4) calls for.
• If the store holds an AGCO convenience store licence, make sure the buyer submits the transfer application, with Personal Disclosure information for the people who will run alcohol sales.
• Ask the AGCO what it allows between signing and approval of the transfer, and notify it of the change in ownership.
• Keep the signs the Smoke-Free Ontario Act, 2017 requires posted through the handover.

For the wider picture that applies across Canada, including inventory and banner agreements, see selling a convenience store in Canada.