March 12, 2017
We hear it all the time. A top of the charts question is how do I transfer the liquor license when I purchase a restaurant or bar in Tennessee?
Here is a simple guide.
1. Liquor licenses in Tennessee are not bought and sold. Unlike many states, liquor licenses and beer permits are issued to any qualified applicant in Tennessee. Licenses have no value.
2. When you buy a business that serves beer, wine and spirits, you have to obtain your own beer and liquor licenses. You can be looking at a prolonged interruption in service if you fail to apply and obtain your own beer and liquor licenses.
3. Make sure you understand local beer board practices. The rules vary widely from city to city. For example, in Nashville, it is best to apply at closing, or the beer inspector may visit and tell you to stop selling beer. Check with your local beer board before closing and make sure you know what you need to do to. Most importantly, do what you are told by your local beer board.
4. The Tennessee ABC will accept an interim management agreement that allows you to "use" the seller's liquor license. The interim management agreement must have some magic language and we strongly advise that you file a copy of the agreement with the ABC at closing. Otherwise, you risk the ABC revoking the license, which means an interruption in service.
5. Make sure you complete all the steps to obtain your own beer permit and liquor license. Too often, we hear from well-intentioned purchasers that are facing an interruption in service because they do not obtain their own licenses.
Classic Hank Williams Jr. comes to mind:
Play me the songs about ramblin man
Put old Jim Beam in my hand
Cause you know I still love to get drunk
And hear country sounds