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Dynamics 365 for Retail on premise Licensing

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My prospect require Microsoft Dynamics Retail on premise. As Dynamics 365 Retail on premise is not available, we suggested to downsizing to AX 2012 R3. Shall I buy 365FO license and implement AX 2012R3 with Retail? If so could you suggest licensing requirement? My client has 4 stores and head office. Each store one POS.

I highly appreciate early response.