ARTICLE · 27 AUGUST 2019

Tenant Lease Considerations For Cannabis Retail Stores

Torkin Manes LLP

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The Ontario Government has moved to the next phase of its plan to license cannabis retail stores within the province with the most recent lottery adding 50 new stores to open this fall.

CanadaReal Estate and Construction

Kenneth Beallor

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The Ontario Government has moved to the next phase of its plan to license cannabis retail stores within the province with the most recent lottery adding 50 new stores to open this fall. If you are a lottery winner in the process of opening a new cannabis retail store, leases are a critical component to ensure success. Below are a list of considerations to keep in mind:

Ensure that the Use provision is as broad as possible so as to permit the tenant to sell cannabis and cannabis related products (including edibles and consumables) and expand on services provided in the leased premises (such as the sale of coffee or food products) as are permitted to be sold from time to time under the governing legislation. Today there are stringent limitations, but over the term of the lease those limitations may become less stringent and the tenant may be able to sell additional products such as edibles, oils and offer additional services

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The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

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