1 CCR 212-3-3-1115 - Accelerator Separate Premises
Basis and Purpose - 3-1115
The statutory authority for this rule includes but is not limited to sections 44-10-202(1)(c), 44-10-203(2)(aa), 44-10-310(2), and 44-10-311(2), C.R.S. The purpose of this rule is to establish requirements for Accelerator-Endorsed Licensees and Social Equity Licensees participating in the accelerator program. This option allows the Accelerator-Endorsed Licensee and the Social Equity Licensee to have a separate premises relationship pursuant to Rules 3-1105 and 3-1115.
A.
Equity Assistance Proposal - Additional Requirements.
In addition to all equity assistance proposal requirements outlined in Rule
3-1105(C)(1), an Accelerator-Endorsed Licensee intending to share a separate
premises in its possession or control with an Accelerator Licensee must also
include the following in its equity assistance proposal:
1. Estimate of the Accelerator Licensee's
initial investment, if any;
2.
Estimate of the Accelerator-Endorsed Licensee's initial investment;
3. Any anticipated application and/or
licensing fees for which the Accelerator Licensee will be
responsible;
4. Restrictions on the
Accelerator Licensee's business (including any restrictions on sources of
products or required vendors);
5.
Assistance provided by the Accelerator-Endorsed Licensee to the Accelerator
Licensee (including assistance in installing required security; hiring and
training employees; providing necessary equipment; establishing prices;
establishing administrative, bookkeeping, accounting, and inventory control
procedures; etc.);
6. Advertising
that will benefit the Accelerator Licensee;
7. Use of the Accelerator-Endorsed Licensee's
brand, trade name, or trademarks;
8. Total number of licenses and locations of
businesses the Accelerator-Endorsed License owns, operates, or is affiliated
with;
9. Anticipated terms of the
financing agreement, including leases and installment contracts offered
directly or indirectly to the Accelerator Licensee;
10. Terms of renewal, termination, transfer,
and dispute resolution procedures;
11. All proposed agreements, including any
property or equipment leases;
12.
The Accelerator-Endorsed Licensee's total annual revenue and fair financial
projections of the Accelerator Licensee; and
13. The anticipated annual fee or percentage
of profits the Accelerator Licensee will be required to pay the
Accelerator-Endorsed Licensee for use of the Accelerator-Endorsed Licensee's
brand, trade name, or trademarks.
B.
Equity Partnership Agreement -
Additional Requirements. In addition to all equity partnership
agreement requirements outlined in Rule 3-1105, an equity partnership agreement
between an Accelerator-Endorsed Licensee and Accelerator Licensee who is
operating on a separate premises from the Accelerator-Endorsed Licensee must
include the following:
1.
Initial
Investment.
a. The Accelerator
Licensee's initial business investment, if any; and
b. The Accelerator-Endorsed Licensees initial
business investment.
2.
Fees. The fees, if any, the Accelerator Licensee and
the Accelerator-Endorsed Licensee will be responsible for, which may include,
but need not be limited to:
a. Application
and license fees;
b. Assistance
with legal fees, if any; and
c. The
annual fee or percentage of profits the Accelerator Licensee will be required
to pay the Accelerator-Endorsed Licensee for use of the Accelerator-Endorsed
Licensee's brand, trade name, or trademarks.
3.
Restrictions on Accelerator
Licensee Business Operations. Any restrictions placed on the
Accelerator Licensee's business operations, which may include, but are not
limited to:
a. Ingredients, formulas, and
processes the Accelerator Licensee is required to use;
b. Sources of products;
c. Advertising; and
d. Third party vendors the
Accelerator-Endorsed Licensee contracted with that the Accelerator Licensee
will also be required to utilize;
4.
Accelerator-Endorsed Licensee
Obligations. All assistance the Accelerator-Endorsed Licensee will
provide which may include, but is not limited to:
a. Assistance in hiring and training of
employees;
b. Establishing
prices;
c. Establishing
administrative, bookkeeping, accounting, and inventory control
procedures;
d. Resolving operating
problems; and
e. Licensed Premises
and equipment buildout.
5.
Accelerator Licensee
Obligations. If the Accelerator Licensee will be required to:
a. Comply with branding;
b. Utilize only the intellectual property of
the Accelerator-Endorsed Licensee;
c. Use of identified third-party vendors;
and
d. Selling product to specific
purchasers.
6.
Terms of Renewal, Termination, and Dispute Resolution.
Any terms regarding renewal of the business relationship, termination of the
business relationship, and dispute resolution. Any dispute resolution terms may
not require Division or State Licensing Authority involvement.
7.
Advertising. Any
terms regarding advertising including the amount and methods of advertising,
the distribution of costs for advertising, whether the Accelerator Licensee may
do its own advertising, and how the costs of advertising will be
distributed.
8.
Agreements. All agreements between the
Accelerator-Endorsed Licensee and Accelerator Licensee, including leases for
property or equipment and any nondisclosure agreements.
C.
Division of
Liability.
1.
Equipment. The Accelerator-Endorsed Licensee and the
Accelerator Licensee are individually and separately responsible for their own
equipment.
2.
Ingredients. The Accelerator-Endorsed Licensee and the
Accelerator Licensee are individually and separately responsible for their own
ingredients, unless otherwise expressly agreed to in the equity partnership
agreement.
3.
Inventory
Tracking and Record Keeping. Both the Accelerator-Endorsed
Licensee and the Accelerator Licensee are each required to comply with the
Inventory Tracking Requirements in the 3-800 Series Rules and the Business
Records in the 3-900 Series Rules. Nothing in this Rule prohibits an
Accelerator-Endorsed Licensee from providing the Accelerator Licensee financial
support to comply with these requirements such as purchasing Inventory Tracking
System tags for use by the Accelerator Licensee.
4.
Security and
Surveillance. The Accelerator-Endorsed Licensee and the
Accelerator Licensee are individually and separately required to comply with
security and surveillance requirements in the 3-200 Series Rules. Nothing in
this Rule prohibits an Accelerator-Endorsed Licensee from providing the
Accelerator Licensee financial support to comply with these
requirements.
5.
Other.
a.
Accelerator Licensee Liability. An Accelerator
Licensee is solely liable and responsible for all conduct and any violations
that occur on the Accelerator Licensee's Licensed Premises.
b.
Accelerator-Endorsed Licensee
Liability. An Accelerator-Endorsed Licensee that makes available a
separate premises in the Accelerator-Endorsed Licensee's possession to an
Accelerator Licensee and who is in compliance with the Marijuana Code and these
Rules will only be liable and responsible for conduct and any violations that
occur on the Accelerator-Endorsed Licensee's Licensed Premises.
D.
Operational Control. The Accelerator-Endorsed Licensee
and the Accelerator Licensee are each responsible for the operational control
at their separate Licensed Premises.
E.
Intellectual
Property. An Accelerator-Endorsed Licensee must permit and require
the Accelerator Licensee to use the Accelerator-Endorsed Licensee's
intellectual property. The Accelerator-Endorsed Licensee will maintain
ownership and control of its intellectual property. The Accelerator Licensee
shall maintain ownership and control of intellectual property it
creates.
Notes
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