Product

Cho's Vending Inc. launches with a single SKU. Single-SKU operation keeps inventory simple and compliance posture airtight under the Smoke-Free Ontario Act, 2017 (SFOA) — every unit in every machine is the same federally compliant, excise-stamped, mint-flavoured disposable at the federal 20 mg/mL nicotine ceiling.

Product

OVNS 2500 disposable vapour device

Flavour

Mint Ice (menthol; SFOA s.9 compliant for non-specialty retailers)

Nicotine strength

20 mg/mL (federal NCVPR maximum)

Puff count

~2,500 per unit

Packaging

Bilingual, excise-stamped (Ontario coordinated stamp)

Supplier

Brampton, Ontario distributor (named on request)

Pricing & revenue split

A single dispense is $30 (HST included). The venue rings the sale on the venue's own POS, collects $30 from the customer, and keeps 25% — about $7.50 per unit — paid into the venue's till at the moment of sale. Cho's takes the remaining 75% in a monthly settlement by e-transfer. Zero capital expenditure on the venue side. Zero inventory carry. No equipment purchase.

Retail price (HST-in)

$30.00 per unit

Venue share

25% (~$7.50 per unit)

Cho's share

75% (~$22.50 per unit)

Settlement

Monthly e-transfer from Cho's to venue

Capacity per machine

90 units (9 slots × 10 per slot)

Machine

The machine is a 23.8" wall-mounted unit with a 9-slot architecture, weighs 28 kg, and runs on standard 110V. The customer-facing surface is a single touchscreen — no product windows, no branding, no product imagery. The machine is inert without an RF keyfob unlock from venue staff; this satisfies Section 10(2)(b) of the SFOA, which requires vending machines for vapour products to be operable only by a retailer or an employee of a retailer.

Dimensions

750 mm W × 300 mm D × 670 mm H (29.5" × 11.8" × 26.4")

Weight

28 kg

Mounting

Wall-mounted (behind or near the bar)

Power

Standard 110V

Connectivity

WiFi, 4G, Ethernet

Lock

RF keyfob — staff unlock per transaction, manual relock

Compliance posture

Cho's is the licensed principal seller. The venue acts as Cho's designated agent under SFOA Section 10(2)(b) for the staff-operated dispense. Cho's carries the regulatory load on every filing, every inspection, and every product-liability claim. The venue's only role on the regulatory side is the same 19+ ID check it already performs for every other age-restricted product on the bar.

Public-health authorities in both jurisdictions we currently operate in have reviewed the model in writing under the SFOA, including the Places of Entertainment doctrine that applies to licensed bars and nightclubs. Pre-operation inspections are conducted at every venue before first sale. Annual SFOA Display & Promotion inspections follow.

Operating Act

Smoke-Free Ontario Act, 2017

Core provision

s.10(2)(b) — staff-operated dispenser exception

Federal overlay

Tobacco and Vaping Products Act + VPPR + NCVPR

Indemnity flow

Cho's → Venue (not the reverse)

First inspection

Pre-operation, scheduled with the regional Public Health unit

Operator partnership terms

A standard Cho's venue partnership is a 12-month initial term with auto-renewal. Either side can terminate with 30 days' written notice — no early-termination penalty. Cho's installs, restocks, services, and removes the equipment at our cost. The venue provides a wall surface, a power outlet, and the staff time of the 30-second dispense flow at the moment of sale.

A full venue agreement and Section 10(2)(b) Agency Designation Addendum are provided for review before any signature. Both documents are templated and reflect terms we have already executed with the founding Ontario partner.