Buying an alcoholic beverage or liquor license is crucial for any business. Whether you are opening a new bar, liquor store, or restaurant, it is essential to have the right license to ensure compliance with state regulations. However, it can be a complex and time-consuming process. Making a mistake in the application process can result in delays and extra costs. Therefore, it is essential to approach the process carefully.
Here, we will discuss tips for buying an alcoholic beverage license.
Figure Out What Type of Liquor License You Need
Determine the type of license you need. There are different types of licenses available; choosing the right one can be a difficult task. The most common types include on-premise licenses, off-premises licenses, and special event licenses. If you are planning to open a small bar in your wine or liquor store, you will need an on-premises license. It will allow you to serve alcoholic drinks at your business.
If you are running a liquor store where you sell products that are for consumption, apply for an off-premises license. Make sure you know what you need before you start the application process.
Check the Availability of License
Before starting the application process, it is essential to check that the type of license you need is available for purchase. In some states, license availability can be limited or scarce. There are different factors that can affect the availability of licenses, such as zoning restrictions, population density, or quotas imposed by the state.
You can contact the state’s licensing authority to verify the availability of a license. This authority is typically the Department of Liquor Control or alcoholic beverage control board. They will provide you with information on the license availability and restrictions that may apply.
Work with a Broker for an Alcoholic Beverage License
Consult with a broker to buy an alcoholic beverage license for your business. A broker specializes in the buying, selling, and financing of liquor licenses. They connect buyers and sellers, ensuring seamless transactions for businesses. They can also provide you with guidance throughout the process.
By working with brokers, you can gain access to license holders who want to sell their licenses. A broker can help you to understand the license market deeply and choose the right type of license, avoiding common mistakes.
Research the Market Value of the License
Research the market value of the license when you are buying or selling an alcoholic beverage license. The market value can vary depending on different factors such as the location, type of license, and demand for licenses in your area. Gather information on recent sales of similar licenses.
Review the public records, such as sales data and license transfer documents. You can also search online marketplaces to get valuable information on the license rates. Also consider the condition of the license, the license’s history, and the reputation of the seller. By researching the online markets, you can ensure that you are paying a fair price for a license.