A liquor license is a legal permit to sell alcoholic beverages, which can be sold from one retailer to another. The selling process of a liquor license can be overwhelming, but you can ensure a smooth and profitable transaction with the right approach.
Here are the essential steps you need to know to sell your liquor license.
Prepare the Asset Purchase Agreement
The asset purchase agreement is an important document in the sale of a liquor license. It is a contract required to establish the terms and conditions for the transaction of license from the seller to the buyer. Similar to other standard assets, liquor licenses can be legally transferred once the payment has been successfully completed. This agreement outlines essential aspects such as payment deadlines, specific duties of the buyer and seller, the payment deadlines, the transfer process, and other fundamental information. Moreover, the buyer is typically required to submit a refundable deposit upon signing the agreement, which ensures their commitment to the transaction.
Recognize Your Liquor License Type
There are different types of liquor licenses. It is important to know the type of your license before selling it. You can easily get confused with various classifications, but understanding your specific license type is helpful for a smooth transaction. SRX/SFS Liquor License is designed for restaurants and food service establishments. This license allows the sale of alcoholic beverages.
Quota – 3DPS / 3CPS / 3BPS / 3APS / 3PS allows businesses to sell packaged beer, wine, and liquor exclusively for off-premises consumption. Businesses with Quota – 8COP / 7COP / 6COP / 5COP / 4COP licenses can sell beer, wine, or liquor for on-premises consumption. If you are unsure about the type of liquor license you need, then consult a beverage license specialist for guidance.
Understand Liquor License Selling Laws
Liquor license laws vary by state, so it is essential to understand the specific laws and regulations in your area before selling. In most states, only business owners or entrepreneurs can purchase a liquor license, and they must provide a background check and valid identification. You must note that all alcoholic beverage licenses cannot be transferred from county to county. The licenses to sell beer and wine may be moved between counties, but liquor licenses must remain within the same county. This restriction is due to limits on the number of liquor licenses permitted per county. You should ensure that your transaction fulfills all regulations to avoid complications. You should also understand that only a qualified buyer can legally purchase your liquor license. You should market the license to the right audience and consider regional market conditions and trends to maximize your selling price.
Partner with a Trusted Liquor License Broker
Selling a liquor license can be a complex process. It is recommended that professional assistance be availed to ensure a smooth and legally compliant transaction. A qualified broker understands the specific requirements to sell liquor license and can act as a closing or escrow agent to facilitate the selling process. A reputable brokerage firm provides accurate and up-to-date market values and helps you get the best possible price. They also connect you with serious and qualified buyers and help you sell your liquor license without any financial loss.
