How Liquor License Transfers Work When You Buy a Liquor Store in BC

If you’re going to sell or buy a liquor store, this post will help you understand how liquor license transfers work for private liquor stores in British Columbia.

In BC, starting from scratch (applying for a new license and all that entails) isn’t possible, because the Liquor & Cannabis Regulation Branch (LCRB) has placed a hold on new private liquor store (Licensee Retail Store) applications until July 1, 2032. Buying a license to move and constructing your own store or buying a turnkey store are the only options if you want to start a liquor store in British Columbia.

Buying a liquor store eliminates or reduces many risks start-ups face and decreases the time it takes to begin generating revenue. Starting from scratch would mean applying for the LRS license and business license, finding a location, negotiating a lease, building the store, stocking inventory, hiring and training employees, and establishing a customer base. If you buy a turnkey liquor store, you bypass many of these growing pains.

The Liquor Store Seller’s Process

Before putting a store up for sale, the seller should ensure that financials are up to date, and that the store meets government regulatory and compliance requirements by checking floor plans for accuracy and ensuring there are no pending enforcement issues. Once a sale agreement is reached, the seller initiates the license transfer via the liquor and cannabis licensing portal by assigning their license to the buyer. LCRB then notifies the proposed licensee to start the liquor license transfer application.

The Liquor Store Buyer’s Process

When considering purchasing a liquor license, a buyer should perform the necessary due diligence, including:

• Reviewing the store’s financials
• Auditing the physical store (building, equipment, displays, fridges, furnishings)
• Understanding the terms of the lease
• Evaluating inventory
• Evaluating compliance
• Reviewing employee records

It’s advisable to work with a liquor store consultant who can help you with these due diligence steps.

When you’re ready to complete the purchase, you’ll need:

• A CRA business number
• A Business BCeID for accessing the liquor licensing portal

To complete the liquor license transfer, the buyer will have to submit:

• Personal history summary
• Certified criminal record check and possible Statutory declaration and/or Driver’s abstract

The buyer completes the LRS license application at the liquor and cannabis licensing portal. Buyers also must submit a Proof of Valid Interest in the name of the acquiring company.

The seller can remain open and maintain the license while the transfer application is being processed. The LCRB will “deem the application complete” in about 7-10 days, and this transfers the liability to the buyer. It then takes an additional 3-4 months for LCRB to finalize their work and issue the liquor license in the buyer’s name.

Sources

• “Transfer a liquor license”, LCRB
• “Licensee retail store”, LCRB
• “Liquor licensee and applicant screening”, LCRB
• “Register for a BCeID”, BCeID portal
• “Business number”, CRA
• “Criminal record checks”, RCMP

In the Market for a Turnkey Liquor Store? Get Thrive on Your Side

If you want to sell or a buy a liquor store in BC, the liquor license consultants at Thrive Liquor & Cannabis Advisors can help. Because of our long-established relationships with LRS licensees, we frequently know about private liquor stores for sale. Many stores do not go on the open market. Working with Thrive increases the likelihood of a sale, saves time and frustration, and makes your transition seamless.