Four years ago, we started discussions with the Saskatchewan government regarding Saskatchewan Hotel & Hospitality Association (SHHA) members, particularly Retail Store Permit holders, being allowed to enter the cannabis retail market. We were very encouraged by the recent announcement that cannabis retail permits would be available throughout the province. Retail permits would be granted based on an application process. The number of permits in the province will be unlimited and there is no restrictions on how many can operate in a community.
So what does that mean for you? Find out HERE
Warren Nerby SHHA Director of Communications and Member Services
On October 8, 2018 the Government of Saskatchewan relaxed liquor regulations and allowed retail store permits to be sold, allowing permit holders to relocate the retail store as long as it stays in the same community.
Imagine you want to sell your bar but the buyer wants you to carry the mortgage. You agree to act as the mortgage lender and offer the buyer of your tavern & offsale “seller-carried financing”. A contract is prepared; the down payment, term and monthly payment are agreed upon. Now, the buyer must apply to the Saskatchewan Liquor & Gaming Authority to change the permit consignee because the retail sales and tavern permits must be in the name of the operator.
Do you know where your RSP is? Remember anyone with a retail store permit to sell alcohol is now allowed to privately sell or trade that permit. Yes, the permit you just transferred to the mortgagor of your business may sell it. Recently in Saskatchewan there have been a couple of occasions where the mortgagor has sold the RSP and pocketed the money.
Whether you are selling or leasing your property it’s important to set out in detail, in a written legal agreement, important matters to be covered, including what is the status of that retail store permit. Get legal advice and ensure your deal includes clauses that protect you.