Policy for Student-Run Businesses On Campus

Student-run businesses on campus that file an Intent to Start Student Run Business Form at least 20 business days prior to start of operations can operate on campus, subject to the business type and other limitations set forth in the policy.  Based on information in the Intent to Start Student Run Business Form, the University may invite the student organizers to provide more information or it may veto the business, in its sole discretion.  An SRB that wishes to operate beyond 30 days or after achieving $5000 in sales must file an Intent to Continue Student-Run Business Form, seek formal approval from Facilities, Legal, Management and Marketing, Food Services, Risk Management, Student Development, Public Safety, Finance, UDIT, and Purchasing, incorporate a legal entity, provide proof of minimum insurance, appoint a business mentor, and produce an annual report.  The University may terminate a SRB at any time and for any reason.

Subject to the following restrictions, SRBs should be permitted to operate at the University of Dayton.  Any costs incurred by businesses in complying with the policy will be paid by the business, or owners of the business.  SRBs must maintain their own bank accounts and accounting records, and cannot use the University of Dayton’s name, Tax ID number, tax-exempt status, or any other University of Dayton property in operating the SRB.

The policy addresses SRBs in two phases.  In the Start-up Phase, SRBs that otherwise comply with the Policy, including the filing of a detailed information form in the prescribed time before starting operations, may commence business operations without seeking formal approval from the University (although the University maintains a right to veto the business before it starts operations).  In the Established Phase, SRBs must continue to comply with the Policy, but are subject to additional restrictions including requirements to incorporate, purchase liability insurance, team with a mentor, and agree to audit and annual reporting requirements.

The following provisions apply to all SRBs, in both Start-up and Established phases.  Exception: All SRBs involving the sale, production, or manufacture of food or drink products are subject to the limitations imposed by both Start-up and Established phases, from the first day of operations.  This means any SRB involving the sale, production, or manufacture of food or drink must seek formal approval prior to commencing operations.

This policy applies to any activity conducted by a UD student or group of UD students, both for-profit and non-profit, that exists (presently or in the future) to generate a margin in excess of costs through the creation of value.  The policy does not apply to student organizations organized under the Center for Student Involvement (Kennedy Union), which are governed under separate policies, including those found in the Student Organization Resource Guide.

It is the intent of the policy to foster and encourage student-run entrepreneurial startups involving a new business idea or improvement on existing business ideas.

Generally, no student on academic or disciplinary probation or suspension can participate in student-run businesses in any manner.  If any student involved in an operating SRB is placed on probation or suspension, that student is generally not permitted to be involved with the SRB’s on-campus operations.

This Policy is meant to benefit UD students.  A majority of the owners of any student-run business must be registered full-time UD students in order to participate under this policy.  If student owners of an SRB graduate and wish to appoint successive owners to operate the SRB, such successive owners must still meet the requirements of this rule.

All student-run businesses must operate in compliance with applicable laws at all times.

Student run businesses must not use any University-owned trademark, service mark, trade name, trade dress, service dress, or other University identifying characteristic, without the express written permission of Legal Affairs.   See also Student Code of Conduct, Misrepresentation.

All student-run businesses must conform to guidelines to uphold Catholic and Marianist values.  These guidelines include a prohibition on any business which requires a liquor license to operate, any business that involves gambling or betting even if legal, or any business that involves the promotion of alcohol.  Businesses that promote or celebrate student culture centered around excessive drinking or high-risk drinking activities are also prohibited.  Businesses that are involved with writing term papers or to facilitate violations of the academic honor code are prohibited.  Other prohibited businesses include, but are not limited to, payday loan/check cashing, events or activities that feature violence or themes of violence, and pornography.  SRBs must ensure their purchasing practices do not promote the use of sweatshops or unfair labor practices.

Businesses that require students to sell based on commissions are generally prohibited.  Businesses that serve as franchisees or agents of other businesses are generally prohibited.  Businesses based on affiliate marketing are generally prohibited.  Businesses that are based on the sale of any financial product or service are generally prohibited.  Businesses that are based on textbook buybacks are generally prohibited.

SRBs may only sell products on campus in designated areas and during designated times.  Flyer Enterprises will be primarily responsible for creating use guidelines for such designated areas.

Businesses are not permitted to sell any products or services in the Student Neighborhood after 11 PM.  Businesses that require a gathering of more than 20 students in the Student Neighborhood are generally prohibited.

Businesses are not permitted to accept credit card payments using UD’s credit card processing facilities, or on UD’s networks.  Private credit card payments such as PayPal or Square are permitted.

Businesses are generally not permitted to compete with UD’s Bookstore, Flyer Enterprises, or Dining Services.

Beyond a de minimis amount of personal property that can fit in one suitcase, students are not permitted to store inventory, equipment, signage or other business property in a campus residence.  This prohibition does not apply to “dual use” equipment that a student might possess for academic purposes as well as running a business, such as a computer and printer.

Any inventory delivered to a SRB for business purposes may not be delivered to a University of Dayton-owned property.

Students must observe reasonable limits on using the University’s computing bandwidth.  Reasonable use is defined as that amount of computing resources a student may use in conducting normal and ordinary academic matters, as defined by UDIT from time to time. Student-run businesses are not permitted to use email class lists to solicit business.  Student-run businesses are not permitted to use University property to host websites.  Students with access to University resources such as photocopiers and other office supplies are not permitted to use such resources in connection with their business.  Student employees are not permitted to use their position as employees to promote or advance their businesses.

Students are not permitted to use any University property or service in operating an SRB.

Door to door sales and solicitations are governed by the Distribution or Sale of Materials or by Employees Policy outlined in the Policies and Procedures Handbook (http://www.udayton.edu/hr/_resources/documents/handbooks/Pol_ProcHdbk1.pdf).  Door to door sales and solicitations in residential areas is generally prohibited.  All direct sales must take place in Designated Areas in compliance with policies then in place, including without limitation the Facility Use Policy.  Flyer Enterprises shall possess primary responsibility for operating time, place, and manner of the Designated Areas.

If approved by the University, food businesses must acquire a food handlers permit and have their food production facilities inspected by the appropriate city agencies.

All SRBs must feature the following language prominently in all communications: This student-run business is operated independently of the University of Dayton (UD).  UD disclaims any responsibility or loss arising from any aspect of the operation of this business.