Common questions
Can I buy a liquor license by itself?
In many jurisdictions, transferable licenses may be sold separately from the operating business, but the buyer still must satisfy the applicable transfer and qualification requirements.
Why are some liquor licenses expensive?
Scarcity is a major factor. Where the number of licenses is limited, buyers may compete for existing transferable licenses. Location, license privileges and market demand also affect price.
Does the license automatically transfer when I pay the seller?
No. Payment between buyer and seller does not replace regulatory approval. A licensing authority may need to approve the buyer, the location and the transfer before the buyer may operate under the license.
Can a liquor license be moved to another city or county?
Sometimes, but geographic transfer rules vary widely. A license may be restricted to a municipality, county or licensing district, or may require additional approvals to relocate.
What is an escrowed liquor license?
The word “escrow” can be used differently by different states. In transactions, escrow can also refer to a third party holding funds or documents until agreed closing conditions are satisfied.
How do I know what a license is worth?
There is no universal formula. Buyers and sellers typically consider current listings, recent comparable transactions, scarcity, geography, license privileges, regulatory status and the number of active buyers in the market.
Can a liquor license be financed?
Some transactions use seller financing, private financing or other secured structures. Availability and terms depend on the license, jurisdiction, borrower and transaction structure.
What happens if my transfer is denied?
That depends heavily on the purchase agreement and escrow instructions. Buyers should understand refund rights, contingencies and termination provisions before placing a non-refundable deposit.
Do I need an attorney?
Requirements vary, but liquor license transactions can involve regulatory, contract, tax, lien, zoning and closing issues. Buyers and sellers should consider appropriate legal and licensing advice for their specific transaction.
Where should I start?
If you are buying, start with the exact license rights and location you need. If you are selling, confirm the license class, status, ownership and transferability before listing.
Still looking for an answer?
Explore the resource guides or contact Liquor License Market.