- Who handles it
- Texas Alcoholic Beverage Commission (TABC), with your attorney
- What gets filed
- The buyer's own application for the permits the business needs, plus notice from the seller
- Timing
- TABC lists roughly 30 to 35 days from a complete application, so start early
Common snag: Closing before the buyer has authority to sell alcohol. A restaurant that cannot pour on day one loses sales fast.
The permit is not a fixture of the building
In Texas, alcohol permits are issued by the Texas Alcoholic Beverage Commission to a specific permit holder. Selling the restaurant does not automatically move your permit to the buyer.
Many buyers apply for their own permits, and the closing is set up around that. Ask your attorney how the buyer's application should line up with yours.
Do not guess on the mechanics. Whether a buyer can use any interim authority is a question for TABC and your attorney, because it depends on the permit type and the deal.
Allow for the review time
TABC's own guidance puts processing at roughly 30 to 35 days from the date a complete application is submitted. That means an incomplete application can push the date out.
In a Dallas sale where the buyer plans to keep the same bar and kitchen running, that window shapes the whole schedule. Asking for a closing date before the permits are in sight can strand the buyer.
What to settle in the contract
- Which party files for which permits, and when
- Whether closing depends on the buyer receiving its permits
- What happens to alcohol inventory at closing, and who counts it
- Who is responsible for any tax or compliance issue from before closing
- What the seller does with its own permits after the handoff
Alcohol inventory is often priced separately from the rest of the deal, and the count has to be agreed in writing.
Other pieces that travel with it
A restaurant also needs its certificate of occupancy and food permits to line up. The city side is covered in the certificate of occupancy guide.
Also check the lease. Many landlords limit what a tenant can do with alcohol, and the buyer will need the landlord's consent to take over the space.
Keep the staff in the loop at the right time
Bar and restaurant teams are the most exposed to rumors. Tell staff close to closing, not months before, and have the buyer meet them after the deal is done.
Servers and managers who hold alcohol training certificates are worth keeping through the change, so ask who plans to stay.
Value the business before you set the date
Buyers of restaurants price on proven cash flow and the strength of the books. A sloppy permit story can cost you in negotiation. A clean set of add backs helps just as much.
When you are ready for a number, request a private price range.
This page is general information and not tax or legal advice. Confirm permit rules with TABC and your attorney before you set a closing date.