Forked River Brewing's plans to expand by opening a retail store have been quashed, at least for now, by Ontario's Alcohol and Gaming Commission (AGCO).

The retail store is almost complete, and complies with rules requiring it to be located on the same parcel of land as the brewery's production area.

But, one of Forked River's founders, Andrew Peters, says because the retail store is not attached (the neighbouring units in the plaze were already occupied), the commission won't approve it.

That's despite the fact that other retail locations, like the one for Molson's brewery in Etobicoke, Ont., aren't attached.

"We approached the AGCO...and went ahead based on the guidelines set out and and we were operating in good faith in that sense only to find out months later they weren't going to approve us," Peters says.

He says quashing the plans is hurting a small business and potential jobs.

"We aren't looking for a handout, we are just looking for equal treatment...What we really need is to expand in here. We had plans to hire one or two more people before the end of the summer and if we can't get these expansion plans going, then that's really what kills it."

Late Friday afternoon, CTV News received an email from the AGCO's communications director that says, "We're reviewing the matter and will work with the brewery to resolve the issue in a timely fashion."

Meanwhile the brewery's staff have started an online petition appealing to the public for help to overturn the decision.