The Florida Department of Professional and Business Regulation (DPBR) has a division focused on regulating and licensing liquor manufacturers, distributors, and sellers within state jurisdiction. While license holders can sell their licenses, this type of transaction requires the utmost attention.
In this article, you will discover how to sell a liquor license in Florida.
How to Sell a Liquor License in Florida – Full Walkthrough
Finding an Ideal Buyer
It is impossible to sell a liquor license without someone willing to buy it. In Florida, liquor licenses are mostly obtained through a quota system. The number of licenses available depends on the number of inhabitants of the county where the licensee’s business is established.
This option often results in a time-consuming process for prospective licensees, which leads many of them to find an existing license to purchase. Considering the limited number of licenses available in the state, sellers tend to be favored in the negotiation.
Many buyers struggle to find liquor licenses available for sale, in addition to the amount per license. For example, depending on the type of license, a buyer may have to spend over $10,000 (maintenance fees not included).
Fortunately for sellers, finding buyers for a license and filtering out the most reliable ones is not a challenging task.
Preparing the Asset Purchase Agreement
Besides the license itself, the most important document of the transaction is the asset purchase agreement. Similar to standard assets, quota lottery winners and owners of purchased licenses can legally transfer the ownership of liquor licenses upon the payment of an agreed-upon amount.
The asset purchase agreement outlines the terms and conditions of the transaction, including the duties of each party to the contract, the payment deadlines, and other fundamental information.
Handling Additional Documentation
Before transferring ownership of a liquor license, the current licensee must provide records of gross sales made within the three-year period immediately preceding the transaction. If the license holder prefers not to provide sales records, it is possible to elect to pay the $5,000 fee.
On the buyer’s side, the transaction requires signed copies of Form DR-835 (issued by the Department of Revenue) and ABT-6002 Section 13 Form (Department of Revenue’s Clearance Statement). These documents are necessary to calculate the license fee.
The seller must file sign and submit the ABT-6002 Section 10 Form (Transferor’s Affidavit) with the Division of Alcoholic Beverages and Tobacco (ABT) authorizing the transfer of the license. The signature must be notarized.
If applicable, the buyer may be required to sign a non-lien affidavit attesting the license will be clear of any encumbrances, judgments, or liens as of the transaction’s closing date.
At the closing, the seller must sign a bill of sale transferring ownership of the license to the new owner. A closing statement outlining the financial details involved in the transaction is also required.
Do You Want to Sell a Liquor License in Florida? – Immediately Seek Expert Legal Guidance
Navigation Florida licensing law can be overwhelming for both current and prospective licensees. Contact Attorney Romy B. Jurado today by calling (305) 921-0976 or emailing [email protected] to find the best licensing strategy for your case.
