Type 47 Liquor License: A Comprehensive Guide
What Is a Type 47 Liquor License?
If you’re looking to serve alcohol at your restaurant or bar in California, obtaining a liquor license is a crucial step in your business journey. Among the various licenses available, the Type 47 Liquor License is one of the most sought-after options, catering specifically to establishments that wish to serve beer, wine, and distilled spirits. This guide will walk you through everything you need to know about the Type 47 liquor license, including its features, the application process, and how it compares to other liquor licenses in California.
What Is a Type 47 Liquor License?
The Type 47 Liquor License, also referred to as an “On-Sale General for Eating Place License,” is issued by the California Department of Alcoholic Beverage Control (ABC). This license permits businesses to sell beer, wine, and distilled spirits for consumption on the premises. It is primarily issued to restaurants, bars, and nightclubs looking to offer a full bar experience to their guests.
Key Features of a Type 47 Liquor License
- On-Site Consumption: This license allows patrons to enjoy alcoholic beverages only within the licensed establishment. Off-site sales are prohibited.
- Sales Incidental to Food: A significant aspect of the Type 47 license is that alcoholic beverage sales must be incidental to food sales. Businesses must demonstrate that at least 50% of their total revenue comes from food.
- Full Liquor Service: With a Type 47 license, establishments can serve a comprehensive range of alcoholic beverages, including beer, wine, and spirits.
- Food Service Requirement: Licenses must be held by bona fide eating establishments that maintain suitable kitchen facilities and offer a varied menu, not limited to snacks.
- Minors Allowed: Unlike some bar licenses that restrict minors, the Type 47 license permits minors on the premises, making it suitable for family-friendly dining.
- Transferable: A Type 47 liquor license can be transferred to another individual or location, providing flexibility for business owners. If you relocate your business, the process is straightforward. Furthermore, if you decide to close your business, your license retains value. At License Brokers, we specialize in assisting clients with the buying and selling of Type 47 liquor licenses, ensuring a smooth transition for both sellers and buyers.
- Responsible Beverage Service Requirements: Holders of the Type 47 license are required to meet Responsible Beverage Service (RBS) standards, ensuring that alcohol servers and managers possess the necessary training and certification.
Application Steps for a Type 47 Liquor License
1. Determine Eligibility
Assess whether your establishment meets the necessary requirements, such as providing food service and having appropriate kitchen facilities.
2.Obtain Local Approval
Before applying to the ABC, acquire approval from your local city or county planning department. This might involve obtaining conditional use permits or other zoning clearances.
3.Secure a Seller’s Permit
Apply for a seller’s permit from the California Department of Tax and Fee Administration (CDTFA), which is essential for any business selling tangible goods.
4.Complete the ABC Application
Fill out the ABC application, which requires detailed business information, a layout of the premises, and personal information about the applicant
5.Pay the Application Fee
Once your application is complete, pay the appropriate fee, which varies based on your location and type of license.
6.Provide Required Documentation
Along with your application, you will need to submit fingerprints for background checks, proof of citizenship or legal residency, and your seller’s permit.
7.Post a Public Notice
Once your application is accepted, display a public notice at your premises for 30 days to notify the community.
8.Attend a Public Hearing (If Required)
In cases where objections to your application arise, you may need to attend a hearing to address community concerns.
9.Obtain ABC Approval
If successful, the ABC will issue a Conditional Letter of Approval, outlining any conditions that must be met before the license is granted.
10.Pay the License Fee
Finally, pay the annual license fee to finalize the issuance of your Type 47 liquor license.
How Does a Type 47 Liquor License Compare to Other Liquor Licenses?
While the Type 47 Liquor License is tailored for restaurants aiming to provide a comprehensive selection of alcoholic beverages, it’s crucial to recognize how it differs from other liquor licenses available in California. Here’s an overview of several other common licensing options to help you understand which may best fit your business needs:
This license suits grocery and convenience stores that wish to sell beer and wine exclusively for off-premise consumption. It permits the sale of these beverages in their original, sealed containers, catering to small retailers and specialty wine shops.
Designed for liquor stores, the Type 21 license allows the sale of a wider array of alcoholic beverages, including beer, wine, and spirits, for off-premise consumption. This license provides flexibility for retail businesses looking to offer a full selection of alcohol options to their customers.
This license is similar to the Type 47 but is limited to just beer and wine sales. It requires establishments to serve food, making it a great option for cafés and family-oriented dining establishments that want to offer a selection of beers and wines without spirits.
This type of license is meant for bars and nightclubs that do not serve food. Under Type 48, no minors are allowed on the premises, and it allows for the on-site sale of beer, wine, and spirits. Obtaining this license can involve more stringent regulations, given it may face community scrutiny.
This specialized license is specifically for brew pubs that brew their own beer while also providing a full range of liquor service. The Type 75 license permits these establishments to sell their beer for both on-site and off-site consumption, along with offering a complete bar menu. This license is particularly advantageous for craft breweries looking to broaden their offerings. Established in 1996 and amended in 2019 by SB 1283 (Bradford), the Type 75 license represents one of the more recent additions to California’s liquor licensing framework.
In conclusion, understanding the nuances of each type of liquor license will help you make an informed decision about which license is most suitable for your establishment’s needs and objectives.
Buy a Type 47 Liquor License
If you’re looking to buy a Type 47 liquor license, the process can be both straightforward and complex. Here’s a step-by-step guide to help you navigate this journey:
- Research Available Licenses: Start by researching the market for Type 47 liquor licenses for sale. Engage with professionals or brokers who specialize in liquor licenses to understand pricing trends and availability.
- Determine Your Budget: Prices for Type 47 licenses can vary significantly based on location and market conditions. Be prepared for costs that can run into the tens of thousands of dollars. Setting a budget upfront will help streamline your search.
- Inspect the License: Before making a purchase, ensure you verify the legitimacy of the license. Check for any encumbrances, compliance issues, or obligations associated with the license to avoid potential pitfalls.
- Engage a Brokerage Service: Working with a reputable brokerage service like License Brokers can expedite the process. We specialize in helping clients buy a Type 47 liquor license, leveraging our network to find competitive offerings and ensure smooth transactions.
- Completing the Purchase: Once you find a suitable license, work with your broker to finalize the purchase contract, which may require due diligence checks and possibly legal reviews.
- Transfer the License: After the purchase agreement is signed, you’ll need to complete the necessary applications with the ABC to register the license under your name. This process may include paying transfer fees and providing documentation.
Sell a Type 47 Liquor License
If you’re looking to sell a Type 47 liquor license, License Brokers can simplify the process significantly. Here’s how to go about it:
- Assessment of License Value: Begin by evaluating your Type 47 liquor license. Factors like market demand, location, and the overall condition of your business can affect the value. Consulting with industry professionals can provide insights into setting a competitive price.
- Prepare Documentation: Gather all necessary documentation related to the license, including the original license certificate, compliance records, and any relevant business details that could enhance its selling points.
- List Your License with a Broker: Consider listing your Type 47 liquor license for sale with License Brokers. Our expertise in the market can attract qualified buyers, ensuring your license gets the visibility it needs for a successful sale.
- Marketing and Negotiation: Allow your broker to manage the marketing and negotiation process. They will typically handle inquiries, arrange viewings, and facilitate discussions with potential buyers to help you achieve a fair price.
- Complete the Transfer: Once a suitable buyer is found, License Brokers will assist you in completing the necessary transfer applications with the ABC. This process ensures that both parties comply with legal requirements.
- Secure Payment: After all legalities are settled, ensure you receive payment as agreed. It is essential to have a clear contract to protect your interests during the transaction.