Student-Run Businesses on Campus Policy : University of Dayton, Ohio

Student-Run Businesses on Campus Policy

Purpose

Many University of Dayton students engage in entrepreneurial activity, both for profit and non-profit, and for curricular as well as co-curricular purposes. This policy allows for entrepreneurial activity among students while still maintaining a reasonable risk profile to protect University assets. The policy seeks to allow an entrepreneurial spirit to grow on campus, seeks to minimize the University’s legal and reputational risks while protecting the University’s business interests, and seeks to help students grow their business acumen through practical wisdom.

Scope

This policy applies to all University of Dayton Students. This policy does not apply to activities students undertake for academic credit, Flyer Enterprises, or activities of a student organization organized under the Center for Student Involvement.

Policy History

I. Effective Date: August 12, 2014

II. Approval: June 19, 2025

III. History:

Approved in its original form August, 12, 2014; however, the University of Dayton provided direction prior to that date in the Student Code of Conduct
Approved as amended: June 19, 2025

IV. Maintenance of Policy: Provost and Executive Vice President for Academic Affairs, Office of the Provost

Definitions

(a) "Student-run Business" on campus ("SRB"): Any University of Dayton student or group of UD students, both for-profit and non-profit, conducting commercial activities on campus that exists (presently or in the future) to generate a margin in excess of costs through the creation of value.

Policy

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

The following provisions apply to all SRBs.

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

2. This policy is meant to benefit UD students. A majority of the owners of any SRB 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 policy.

3. All SRBs must operate in compliance with applicable laws at all times.

4. SRBs 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 University Marketing and Communications, Legal Affairs, and/or Athletics.

5. The following types of business activity are prohibited and will not be approved as an SRB:

a. a business which requires a liquor license to operate, that involves the promotion of alcohol, or that promotes or celebrates student culture centered around excessive drinking or high-risk drinking,

b. any business that involves gambling or betting, even if legal,

c. any business that involves writing term papers or facilitates violations of the academic honor code,

d. any business that involves payday loan/check cashing,

e. any business that features violence or themes of violence, and/or pornography.

6. 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.

7. SRBs must ensure their purchasing practices do not promote the use of sweatshops or unfair labor practices.

8. SRBs may only sell products on campus in designated areas and during designated times as directed by the Crotty Center, Center for Student Involvement, and/or Housing and Residence Life.

9. SRBs 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.

10. SRBs 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.

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

12. Students are not permitted to store inventory, equipment, signage, or other business property in a campus residence beyond a de minimis amount of personal property that can fit in one suitcase. 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. Inventory delivered to university owned property must comply with "suitcase sized" standard.

13. 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. SRBs are not permitted to use email class lists to solicit business. SRBs 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.

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

15. Door to door sales and solicitations in residential areas is generally prohibited. All direct sales must take place in Designated Areas.

16. Any SRB requiring food licensure will be vetoed by the University for operation.

17. 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.

18. All SRBs are encouraged to operate as limited liability companies (LLC), which 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.

19. Proof of Liability insurance is generally required. Risk Management and Insurance may provide guidance for insurance requirements and how to obtain a Certificate of Insurance.

20. The University maintains the right to audit the operations of the SRB, and the business consents to such an audit at any time while operating on campus.

21. The University may order the SRB to cease operations on University properties at any time and for any reason.

Violations of this policy may be sent to the Office of Community Standards and Civility for review.

Reference Documents

Appendix A to Student-Run Businesses on Campus Policy

Student-run businesses on campus that file an "Intent to Start Student-Run Business" form 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. All SRB’s must seek formal approval through the Crotty Center for Entrepreneurial Leadership, which will further engage approval/feedback from Legal Affairs; Audit, Risk, and Compliance; and any other pertinent/affected university group (e.g., Student Development; Public Safety; Finance and Administrative Services; UDIT; and Procurement and Payable Services). All SRB’s must show proof of abiding by all State of Ohio and/or federal rules, laws, and regulations. The University may terminate an SRB at any time and for any reason.

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

A. Before any student-run business can commence operations (other than preliminary business planning), the business must file an "Intent to Start Student-Run Business" form (see Appendix B). The Form must be filed no later than 20 business days before start of operations. The Form is filed with the Crotty Center for Entrepreneurial Leadership, which shall distribute copies to the appropriate university offices for approval. Operations may not commence until formal approval by all required university entities has been granted.

B. 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-Run Business" form, the student-run business can commence operations as outlined in the form.

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

Appendix B: Intent to Start Student-Run Business Form

Note: Information on this form may contain proprietary or confidential information to the business. This form shall not be made publicly available unless required by law.

INTENT TO START STUDENT-RUN BUSINESS FORM

(for each student)
Name:
Campus Address:
Email Address:
Cell phone number:
Major(s) and Minor(s):
Year in School:

1. Name of Proposed Business.

2. Did you conduct a name search to ensure you can form an LLC in this name? What result?

3. Have you formed an LLC or other form of incorporated entity?

4. What experience does your management team have with 1) running a startup business and 2) running a business of this type?

5. Who can represent your business to the University? The University is entitled to rely on the representations of this person exclusively.

6. Date to commence operations (must be at least 20 business days in the future from filing this form):

7. Describe the nature of the business in as much detail as possible.

8. How do you plan on making money on this business?

9. Who are the key suppliers to your business?

10. Do you plan on hiring any individuals other than the founders of the business?

11. How do you plan on marketing to the UD Community (see Policy for marketing guidelines)?

12. Identify any permits or licenses required to run your business.

13. Identify any IT requirements or other UD-owned resource requirements.

14. Identify where you plan to store your inventory.

15. What forms of payments will you accept? If you plan on accepting credit card payments, what service processor will you use, and do you agree not to use UD networks in accepting credit cards?

16. How much money do you need to start your business, and where is this money coming from?

17. Have you performed a competitive analysis? What are the results?

18. Have you performed a risk analysis for your business? What are the results?

Acknowledgements by student entrepreneurs:

By our signatures below, we hereby acknowledge and agree that we:

have read the Policy in its entirety and agree to comply with it,
will use appropriate disclaimer language in product marketing,
will not act as agents of the University in any manner,
agree to hold harmless the University from any damages arising out of the operation of our business,
will not use the trademarks or other intellectual property of the University of Dayton or other entities without appropriate permission.

(for each student)
By:
Name:
Date: