Building Equity in Your Liquor License

By admin
In April 29, 2019
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Three Reasons to Plan Ahead When Getting Your Liquor License 

What are the benefits of
owning a 4COP Quota License?
Learn how you can turn your
liquor license into a real asset.

Running a business, especially one that sells alcoholic beverages can become very expensive over the years, and it is essential to plan for potential disasters or unexpected expenses. One way that you can prepare yourself is to build up equity in your liquor license? A Florida 4cop license can be a great way to do this, but how?

Your Florida 4COP License can be a valuable asset that appreciates over time. Learn how you can build equity in your license and why you might consider selling it in the future.

IT’S ALL ABOUT EQUITY

A Florida 4Cop License is something that builds up equity over time, just like many other investments that you might make. Let’s say you finance your liquor license instead of buying it outright; while it might seem like an added expense, it is actually helping you over time. As you pay off your liquor license, you build up equity, similar to paying down a home mortgage. At first, the amount is pretty inconsequential, but as time goes by and your equity builds up, you can cash out and purchase much-needed items for your business.

A SAVINGS FOR UPGRADES AND REPAIRS

You could think of your liquor license as a passive savings account. The equity slowly builds, and while you might not touch it for years, at some point, when you need major repairs or upgrades, it will be there waiting for you. That fryer in the kitchen might be getting old, or maybe you need to add a new point of sale system for your front end. Then again, perhaps you need some help paying off your taxes or upgrading your signage. No matter what your needs are, a liquor license can be a great way to get the money to get things done.

A SAFETY NET FOR YOUR BUSINESS

Make Sure Your Service Staff is Trained

There are still options for you
if you sell your valuable quota license.
Find out how an SRX alternative could
keep your business functioning.

For many businesses, a liquor license is an absolute necessity. Bars, service stations, convenience stores, and many others depend heavily upon this license to draw in their primary customers. Unfortunately, obtaining one in some counties can be difficult, and the legalities can create an additional, unnecessary burden for many business owners. Let us work through the legal drama and get you the best possible outcome. Remember, you can build equity, and when the time comes, you can even sell your liquor license and cash out of the business. While your physical assets are critical, a liquor license is the most important of the intangible assets that you will acquire.

WHY WOULD YOU SELL A LICENSE IF YOU NEED IT FOR BUSINESS?

You’ve reached this point in the article and asked a valid question: why would you sell your liquor license if you need it to operate your business? It’s all very well that you can make a profit from a quota license, but does that really matter if you need that very same license to serve your patrons?

Well, there’s actually a solution to this. Quota licenses are the most valuable Florida liquor licenses, and they’re the ones that are resold on the private market. If you own a quota license, then you’ve got an incredibly valuable asset that is only going to appreciate over time.

If you ever decide to sell your quota license, then you can get one that is almost identical, with a few extra criteria for applicants.

The 4COP-QUOTA liquor license can be used by any business to sell beer, wine, and spirits. There are no restrictions surrounding the size of the business, how many patrons it can serve, or how much of its revenue is generated from alcohol sales. Bars and nightclubs are two examples of businesses that desperately seek out 4COP-QUOTA licenses. If a new club is being planned for your county, it won’t be able to get started without one.

TAKE A LOOK AT SOME EXAMPLES FOR CONTEXT

Let’s say that you own a restaurant but you were one of the lucky people who either won (on the state lottery) or purchased a 4COP-QUOTA license. There’s only one new license added for every 7,500 residents in the county, so what you own is incredibly rare. You can use the license to sell alcohol at your restaurant, and then sell it when you get big enough to move to an SRX license.

The 4COP-SRX license allows for beer, wine, and spirits sales. However, it’s not a quota license. It requires that…

  • Your business has seating for 150 patrons and a floor space of at least 2,500 square feet.
  • In some counties, this can increase to 250 patrons and 5,000 square feet of floor space, but the requirement is still reasonable.
  • You also need to prove that you can generate at least 51% of your revenue from food and non-alcoholic beverage sales.

If you apply for a 4COP-SRX license you are guaranteed to get one, as long as you meet the criteria.

So, if your business fits this scenario, you could obtain your SRX license, and sell your 4COP license for a significant profit.

Alternatively, if you ever decide to leave the restaurant or hospitality industry, you can keep your quota license for as long as you want and then sell it when the right offer comes along.

GET YOUR LIQUOR LICENSE NOW

You already know the benefits of owning a liquor license, and now you know how it can help you in the long run, but how do you go about getting one? New business owners might not realize that liquor licenses are limited in Florida counties and the only time more can be issued, is when the population of the area increases. This, however, does not mean that you can’t get a Florida liquor license.

What many people fail to realize is that previously purchased licenses remain in circulation, and with businesses closing down all the time these licenses are often sold to the highest bidder. However, even if you are lucky enough to find one for sale, you will still need to navigate many of the legal loopholes. What does that mean for you exactly? What do you need to know and how should you go about getting your license?

Using a professional service like ours is a great way to get your foot in the door. Not only do we have access to plenty of licenses in the state of Florida; we are also highly experienced with the legal aspects. We can help you to ensure that you get your license, keep it, and start building equity.

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