Liquor License Management Agreement

Licensees may attempt to enter into an agreement or agreement with a third party to carry out the transaction under the licence. Any authorization granted by the receiving authority does not authorize any person other than the taker to manage the transaction under a licence and does not in any way exempt the taker from its obligations and responsibilities under the law. It is not only important to discuss alcoholic beverages specializing in transaction and approval, but specialized alcoholic beverage advice can be an invaluable resource during closing, transitioning a transaction phase as well as in day-to-day operation. For example, specialized consultants can be invaluable in terms of compliance and advise on issues such as: If I run out of vodka, can I send someone to buy more in the spirits store on the street? Can I make an excess inventory outside of operation? Can I build an outdoor bar by the pool? Will a change in management company affect the licensing of spirits? A duly drawn-up administrative agreement provides, for example, that the taker retains effective control of the premises granted, while placing the administrative unit in a bid role. A poorly drafted agreement too separates the control of the license with the manager entity and is not approved by regulators. Although the taker may, in some respects, be subordinated to the management company, important decisions must be reserved for the taker within the managing entity, who works in such a way that their interests are ultimately positioned for the licensee. A liquor licence is at the heart of any activity involving the sale of alcoholic beverages. It binds to any other license to operate such a business that requires prior authorization from all other applicable regulatory authorities and local authorities before being issued, and a business cannot buy or sell alcohol without purchasing one. The integration of specialized alcoholic beverages can help avoid unnecessary liability and costly and time-consuming mistakes.

This article was originally published in Law360 on March 1, 2017. And of course, an alcoholic beverage consultant is essential if you are fighting legal action against a state`s liquor control authority for alleged violation of the Liquor Act or if you are fighting another part of a failed transaction because it is unable to transfer a liquor licence.