Type 47 Liquor License Demystified: Essential Insights for Aspiring Restaurant Owners in California
A Type 47 Liquor License, officially known as an "On-Sale General for Eating Place License," is issued by the California Department of Alcoholic Beverage Control (ABC). This license allows establishments to serve beer, wine, and distilled spirits for on-site consumption. Primarily granted to restaurants, bars, and nightclubs, it enables businesses to provide a full-service bar experience while ensuring compliance with state regulations.
On-Site Consumption: Alcohol must be consumed on the premises; off-site sales are not allowed.
Food Sales Requirement: At least 50% of revenue must come from food sales.
Full Liquor Service: Permits the sale of beer, wine, and spirits.
Bona Fide Restaurant: Establishments must have a kitchen and a diverse menu.
Minors Allowed: Suitable for family-friendly dining.
Transferable: Can be sold or moved to a new owner or location.
RBS Compliance: Requires Responsible Beverage Service (RBS) training and certification.
Check Eligibility: Ensure your establishment meets food service and kitchen requirements.
Get Local Approval: Obtain zoning clearance or necessary permits from your city/county.
Secure a Seller’s Permit: Apply with the CDTFA for tax compliance.
Submit ABC Application: Provide business details, premises layout, and personal information.
Pay Application Fee: Fees vary by location and license type.
Provide Documentation: Submit fingerprints, proof of residency, and seller’s permit.
Post Public Notice: Display a notice for 30 days to inform the community.
Attend Public Hearing (If Needed): Address objections if raised.
Receive ABC Approval: Obtain a Conditional Letter of Approval with final conditions.
Pay License Fee: Complete the process by paying the annual fee.
Buy a Type 47 Liquor License
Research Licenses: Explore available Type 47 licenses and market trends.
Set a Budget: Prices vary by location and can be costly. Plan accordingly.
Verify License: Check for compliance issues or encumbrances before buying.
Work with a Broker: A brokerage service like License Brokers can streamline the process.
Finalize Purchase: Complete due diligence, legal reviews, and sign the contract.
Transfer License: Submit required documents and fees to the ABC for ownership transfer.
Sell a Type 47 Liquor License
Assess Value: Determine pricing based on market demand and location.
Gather Documents: Prepare license certificate, compliance records, and business details.
List with a Broker: Work with License Brokers for better visibility and qualified buyers.
Market & Negotiate: Let your broker handle inquiries, viewings, and pricing discussions.
Complete Transfer: Submit required documents to the ABC for legal processing.
Secure Payment: Ensure a clear contract and receive payment upon completion.
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