Interim Beverage Management Agreement

A licence for alcoholic beverages is at the heart of any activity involving the sale of alcoholic beverages. It is applicable to any other licence to operate such an undertaking and requires the prior authorisation of all other applicable public and local authorities before it is issued, and an undertaking may not buy or sell alcohol without such a licence. The appointment of a consultant who specializes in alcoholic beverages can help avoid unnecessary liability and costly and time-consuming mistakes. This article was originally published in Law360 on March 1, 2017. However, Florida`s Beverage Act expressly prohibits stores that operate in a licensed building from being operated or controlled by persons other than the licensee or its authorized employees. [1] The use of such an agreement exposes both buyer and seller to the risk of enforcement action and may leave the lawyers who drafted the agreement to defend a right of misconduct. In the event of a problem related to the sale of alcoholic beverages during the period during which the buyer operates under the seller`s license after conclusion, not only are buyers and sellers not the only ones to address the license violations, but their liability insurers may both have a basis for rejecting related rights. For example, a well-developed management agreement provides that the licensee retains effective control of the licensed premises, while positioning the administrative unit in a minor role. A poorly developed agreement separates too much control from the licence to the administrative unit and is not approved by the supervisory authorities. Although the licensee may, in some respects, be subordinate to the administrative unit, essential decision-making must be entrusted to the licensee, with the managing body working in such a way that ultimately its interests are positioned for the licensee.

Law firm of John P. Connell, P.C.: A restaurant, bar or hotel licensed in spirits may attempt to delegate management responsibility to another person or entity through a contractual relationship known as a management or business agreement. This agreement requires the approval of the local authorities responsible for reception and the Alcoholic Beverages Control Commission (ABCC), which is usually reviewed by such boards of directors, as they are not privileged by the regulatory authorities. The failure to disclose and approve a management agreement, both by the local authorisation authority and by the ABCC, may be followed by the licensee of serious sanctions, including the withdrawal of the licence, if the regulatory authorities are informed of such an undisclosed agreement. Just like identifying contractual issues, it`s important to know where to look for due diligence concerns. Alcoholic beverages are regulated at multiple levels of government and it is important to understand the impact of regulation on licensing at all levels of government. For example, in many countries, the state regulates qualifications to hold a liquor license, but each municipality has unique zone requirements that govern the placement of licenses for alcoholic beverages. Failure to recognize these unique and ever-changing codes, even in the smallest municipalities, can be devastating for a customer.