Approval Process for Student-Run Businesses on Campus

The following provisions describe the approval process for students who wish to start a student-run business.

Before any student-run business can commence operations (other than preliminary business planning), the business must file an “Intent to Start Student Business” Form (see Appendix).  The Form must be filed no later than 20 business days before start of operations.  The Form is filed with the Department of Management and Marketing, 720 Miriam Hall.  The Department of Management and Marketing shall distribute copies of the Form to Legal, Student Development, and Risk Management.  Formal approval from these offices is not necessary at this point, but any of these offices can veto the student business by providing its response in writing to the Department of Management and Marketing before the start of business operations.

The University reserves the right to veto, in its sole discretion, any business proposed in the Form.  The University may also invite (but is under no obligation to invite) the student organizers to provide more information or to an in-person interview to clarify the business operations.  If the student-run business is not vetoed after filing the Intent to Start Student Business Form, the student-run business can commence operations as outlined in the form.  The business may operate for 30 consecutive calendar days in this phase, or upon reaching $5,000 in revenues, whichever is shorter.  This period is the Start-up Phase.  The Start-up Phase cannot be reset through an interruption in time, nor can it be reset by submitting a new Intent to Start Student Business Form for a business idea that is substantially similar to a previously submitted Form.  Businesses in the Start-up Phase must comply with all provisions of this Policy.

If a business wishes to continue operations beyond the Start-up Phase, it must file a Intent to Continue Student Run Business Form (Appendix B) with the Department of Management and Marketing and comply with the additional requirements below.  The Intent to Continue Student Run Business Form must be filed no later than 5 calendar days of the expiration of the Start-up Phase.  Operations beyond the Start-up Phase are called the Established Phase.

All student-run businesses in the Established Phase must operate as an entity other than a sole proprietorship or general partnership.  Operation through entities such as limited liability companies (LLC) is highly encouraged and limits liability for the student owners of the business, as well as reduces the potential for vicarious liability for the University.  Out-of-state entities can operate in Ohio with the appropriate registrations with the Ohio Secretary of State.

Proof of Liability insurance is generally not required in the Startup phase, but may be required pending review by Risk Management.  Proof of Liability insurance is required in the Established Phase.  Risk Management shall provide guidance for insurance requirements and acceptable proof.

Businesses in the Established Phase must contact a UD Business Mentor and inform the UD Business Mentor of all key facets of the businesses’ operations.  The Crotty Center will maintain a list of business professionals who volunteer to act as UD Business Mentors to SRBs in the Established Phase.  The UD Business Mentors will be provided a copy of this policy and will sign an opinion letter at the beginning of the Established Phase (within 15 business days of being introduced to the business), and annually thereafter, that to the best of their knowledge, the SRB is complying with the Policy.

The Intent to Continue Student Run Business Form must be formally approved by Facilities, Legal, Management and Marketing, Food Services, Risk Management, Student Development, Public Safety, Finance & Administration, Purchasing, and UDIT.  The approval must be granted within 15 business days of the filing of the Intent to Continue Student Run Business Form.  The student-run business may continue operations while the approval process is pending, unless directed to stop operations by the Office of the Provost.

During the Established Phase, student run businesses must generate an annual report outlining the company’s operations and financial statements, as well as its challenges and risks.  This report must be published by April 15 of every year, and an electronic copy shall be made available for the campus community to read.

The University maintains the right to audit the operations of the student-run business, and the business consents to such an audit.

The University may order the student-run business to cease operations on University properties at any time and for any reason.

Violations of this policy will be sent to the Office of Community Standards and Civility for review.  Appeals for violations are similarly handled by the Office of Community Standards and Civility.

Determinations on whether to veto or disallow any SRB are final.