Obtaining a liquor license in the State of California can prove to be difficult since most licenses can not be obtained by the State. Instead, buying a liquor license requires that you find a business already in possession of the license you need and buy it directly from them. This type of transaction involves many rules and regulations set forth by the California Department of Alcoholic Beverage Control. As in most instances, dealing with a government agency comes with its share of frustrations, delays, and complications. The process can be lengthy if not done correctly. For this reason, it is advisable for buyers and sellers to elicit the help of an experienced broker who can handle the issues that will arise with the State. Brokers can assist buyers and sellers in actually finding each other and then can even help to negotiate the financial terms of the purchasing of the license. All the while, they make sure that all rules and regulations are followed.
The amount of time it takes to obtain a license varies from sale to sale. All liquor license transactions must go through an escrow period. The escrow is set up to protect both the buyer and the seller. The seller must pay off any debts associated with the business before they can accept the money for the license. The escrow allows the buyer peace of mind that they will in fact be given a license in exchange for the funds given to the seller and it also allows the Department of Alcoholic Beverage Control to trace funds from buyer to seller to ensure the exchange is within legal guidelines. Using a broker assures that all legal requirements are met and allows peace of mind for both sides.
For more information, please contact our office at 800-437-1100.
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