Most People Don’t Know That Liquor License Brokers Can Help With These 3 Services

Liquor license brokers are experts for a reason. We know the ins and outs of liquor licensing and can save you time, money, and headaches. The process of buying, selling, and acquiring a liquor license can be a lengthy one, especially depending on your state and the kind of license you want.

But on top of our work directly with licenses, there are also a number of other helpful services we provide that many professionals don’t know that we offer—and they could make your next licensing deal even better.

1. We keep track of industry-wide trends and legislative updates.

Understandably, most attorneys and food and beverage professionals aren’t standing by their computers waiting for the next industry shift or change in liquor licensing law.

That’s where we come in. We spend time understanding pivots in municipal and/or state licensing policies so that when our clients need help, we’ve already got the inside scoop on what they need to do to stay compliant. We consult others on the latest legislative changes and industry trends, too.

2. We provide market research and data.

For franchise owners, lenders, license coordinators, establishment owners, and others in the food and beverage industry, one of the most time-consuming activities is diving into market research and finding reliable data.

Lucky for you, our team is always up-to-date on valuations and performs regular surveying for a number of clients. So instead of trying to decipher this data on your own, come to us—we can do the heavy lifting for you.

3. We keep track of critical timelines & provide resources.

Anyone who’s buying or selling a license probably has other irons in the fire—opening or closing a restaurant, buying or selling a piece of real estate, leasing a property, the works.

We don’t just locate a license; we also make sure to communicate deadlines, highlight the materials needed for transactions, spot potential red flags, and take care of other logistics so that clients never feel like they’re fending for themselves on top of their plethora of other responsibilities. Who has time for all of that?

If you’re trying to buy a liquor license and you have all the pieces, bring us on board to put them together. You have the lemons, and we’ll turn them into limoncello.

3 Ways a Liquor License Broker Makes an Attorney’s Job Easier

Over our many years of business, we’ve worked with numerous attorneys to make their journey through the liquor licensing process easier.

Attorneys who are new to what we do often ask why it’s necessary to have a liquor license broker; what they often find, however, is that our services go far beyond just finding a buyer or seller. How do we make the process smoother for all of the lawyers we work with? Here are the three main ways.

1. We troubleshoot for you.

We see possibilities in licensing that other people frequently miss. We solve the problems attorneys don’t always have the time or expertise to resolve, acting as partners to step in and lead extra support to deliver a winning result for all parties involved.

For example, if we had a business trying to buy a license from one of its other franchisees and that franchisee is avoiding the sale, we have the bandwidth to speak with that franchisee and work through any questions or problems. Sometimes, that includes venturing out to evaluate what the cost would be for a business to buy a license over the next six months in a certain community and getting into the nitty-gritty details of how to make that transaction.

For an attorney, having a team with the expertise who has dealt with these problems is a huge asset, and it saves quite a few headaches for those who aren’t as well-acquainted with this business as we are.

2. We offer our knowledge base.

Attorneys are the legal experts. But who wants to spend two weeks poring over books of licensing case law to figure out what’s going on? Given that a lot of lawyers who contact us aren’t licensing-specific attorneys, we step up to act as a resource for them to make decisions and give their clients firm answers.

About 90% of the work we do involves working alongside attorneys to solve their clients’ problems and fulfill their needs. The services we provide most often include looking to buy a license, needing to sell a license, requesting an evaluation done for lending, and uncovering a license for scratch.

At the end of the day, we’re going to be as creative as possible in our deal-making to ensure that clients—and by extension, their attorneys—walk away with a deal they’re happy with.

3. We’re reliable no matter what the process throws your way.

There’s enough unpredictability with the transaction of trying to buy, sell, or secure a liquor license. Why go it alone?

Our mission is to make that process much easier and more streamlined. When we do business with attorneys, we help manage the transaction from start to finish and point out any potential red flags or legal complications that lawyers should be aware of. If there’s a snag in a deal, we’re the ones who will step in to work it out in order to make sure attorneys aren’t adding something to their licenses.

When it comes down to it, we have one specialty: Liquor licenses. We learn every day, which means we’re constantly developing better systems and processes for our clients, as well as their attorneys.

How Can I Tell If a Liquor License Is Fake?

Whether you’re looking into buying or selling a liquor license for the first time or dealing with your millionth sale, there’s always one question in the back of your mind: How can you know if a liquor license is real or fake?

We get it: Buying and selling a liquor license can be tough—and often there’s a lot of money on the table, particularly if you’re in a state with a quota.

For individuals and businesses looking to buy a liquor license, whether new or from an existing business, one of the most important skills you can learn is how to tell if you’re being sold a fake liquor license. Accidentally or intentionally buying a fake liquor license and operating without a bonafide license can get you into a world of trouble with the Division of Alcohol Beverage Control (ABC), so consider us your saving grace.

Let’s start with a refresher of what a liquor license is and what it does: It’s a permit to sell alcohol and alcoholic beverages. If your business has a hand in the distribution, manufacturing, or sale of alcohol, you’re going to need a liquor license. That includes businesses from restaurants and bars to hotels, private clubs, or other establishments. And that’s good news: Liquor sales can be responsible for some of the largest profit margins on a menu, depending on the type of liquor—between 76% and 82%. However, that’s all the more reason to make sure that you’re purchasing a legitimate liquor license and not a fake one.

What are the red flags that you might be buying a fake license? Here are the most common issues we see.

You’re in a state with tough liquor license regulations.

In New Jersey for example, the Division of Alcohol Beverage Control (ABC) that issues liquor licenses has some of the toughest liquor license regulations in the country. Because of large populations of people and local ordinances limiting the number of retail liquor licenses that are allowed to be issued, it’s harder to obtain a liquor license.

In states where there are more strict regulations, it’s more likely to find businesses that are operating with fake liquor licenses or without liquor licenses at all.

You’re buying a liquor license from a business that’s previously had its license revoked.

When restaurants, bars, and other facilities that handle and sell alcohol don’t comply with alcohol regulations law, they can lose their liquor licenses, posing issues for their revenue streams. While some places work honestly and diligently to get their licenses back, that’s not always the case, and people get caught with fake liquor licenses. Although buying a liquor license from a business that’s previously had its license revoked doesn’t necessarily mean you’ll have issues with being sold a fake liquor license, it’s always better to do your research and due diligence to make sure. (As a reminder, this is where a liquor license broker or consultant like Liquor License Advisor comes in handy—we do that work for you.)

A business’ liquor license isn’t registered with the area’s Alcohol Beverage Control (ABC).

Of course, the biggest red flag of all is if you check with the local ABC and no one at the agency can confirm that the business you’re buying the liquor license from has a legitimate license. When you purchase a liquor license from a business that is closing or going out of business, you apply with your state’s ABC agency as if you were applying for a new license. However, you may have already been in talks with a business claiming to have a liquor license to sell you. If you can’t confirm that the license is official with the ABC, it’s likely that it’s a fake liquor license.

No matter what state you’re in, you should be able to work with the state to find out if a business is licensed to sell alcohol, and specifically check if a business has a liquor license with its name in its exact location.

This is also where hiring a liquor license broker is helpful so that you can make sure that you’re not getting duped by a fake liquor license. Teams like ours at Liquor License Advisor can make sure you’re in accordance with all regulations; we do the vetting of licenses for you.

Have any questions about the process of buying and obtaining a liquor license? We can help. We know the liquor control laws in numerous states backwards and forwards, including all of the local rules and regulations. We want to ensure a smoother application process by arming you with knowledge and a team who can properly vet everything during the process.