What the buyer and seller line up
- Seller: confirm your local and state licenses are current and that no citations or balances are open.
- Buyer: apply for a new local alcohol license with the city or county where the business sits.
- Buyer: apply for the state license through the Georgia Department of Revenue once the local license is in place.
- Both: make the purchase agreement depend on the buyer getting its licenses.
- Seller: tell the city and the state when you stop, and close your license accounts.
Dates to know: Don't let the buyer serve or sell alcohol under your license after closing. Local rules can cancel a license when ownership changes.
Why Licenses Don't Transfer
Georgia issues alcohol licenses to a specific licensee for a specific location. When the owner changes, the license doesn't go with the sale. The new owner has to apply for its own.
Local governments say the same in their own words. Chatham County and Savannah require a new application, and fees, after a change of ownership.
The City of Tucker, inside the metro, says an unauthorized ownership change automatically cancels the existing license. Expect your city or county to work along similar lines.
Two Licenses, Local First
A business that sells beer, wine or liquor in Georgia needs a local license from its city or county and a state license from the Georgia Department of Revenue's alcohol division. The local application usually comes first, and the state license follows.
The local step is where most of the variation lives. Some governments want background checks, a hearing or approval by the council or commission, and each has its own forms, fees and calendar.
Ask the city or county early what they need and how long it usually takes.
How This Shapes the Deal
Alcohol sales can be a big share of a restaurant's profit. A buyer won't close without knowing it can keep selling. So the purchase agreement usually makes closing depend on the buyer getting its licenses, and sets a date by which that has to happen.
That can put weeks or months between signing and closing. Keep the business running well the whole time. A bad inspection or a sales violation in that window can sink the buyer's application or reopen the price.
Stock sales are not a shortcut
Some owners hope that selling the company's stock avoids a new license, since the licensee company stays the same.
Local rules often treat a change in who owns or controls the licensee as something that has to be reported or approved. Ask your attorney before assuming either way.
What the Buyer Will Ask You For
- A copy of your current local and state licenses
- Your floor plan and seating, if the license depends on them
- Your lease, since many applications need proof of the right to use the location
- Sales records showing how much revenue comes from alcohol
- Any citations or violations from recent years
Most of this you already have. Pulling it together before you list helps the buyer file quickly once you sign.
Package Stores and Bars
For a package store or a bar, alcohol may be nearly all of the revenue, so the license question is the whole deal.
Buyers in these businesses often have licensing experience and know the local process. Even so, they will want time built into the contract, and a way out if the license is refused.
Location rules also matter. Some local codes set distance limits from churches, schools or other licensed stores.
A new application at an existing location is usually judged under the current code, so a store that was fine years ago may face questions. Ask your attorney to check before you list.
Food and Health Permits Too
Health permits for food service are also issued to an operator, and the buyer will typically need its own from the county environmental health office. Time these with the alcohol licenses so the buyer can open on day one.
Closing Your Side
Once the buyer takes over, tell the city or county and the state that you have stopped, and close your license accounts. Your state sales tax account, which includes tax on alcohol sales, needs clearance as well: see the TSD-10 guide.
In the city, the business license closes through the Final/Close form.
Restaurants are often bought by owners nearby. Our page on selling in Lawrenceville touches on family run food businesses, and the selling process page shows the full timeline.
This page is general information, not legal advice. Confirm the requirements with your city or county, the Georgia Department of Revenue and your attorney.
Sources include local licensing guidance from Chatham County, Savannah and Tucker, and the Department of Revenue's alcohol licensing contacts.
For a private estimate of what your restaurant or store could bring, send the form or call (404) 555-0139.
