One of the most important and challenging tasks that restaurants, bars, breweries, or retail places have to overcome is securing a needed alcohol license to sell or serve alcohol. It is a complicated process with many regulations, local and state conditions, and even sometimes opposition from the local community.
One wrong decision can result in unnecessary waste of resources, money, and even the loss of your entire business enterprise. Here at Brydon, Swearengen & England, expert liquor license counsel is not only available but also guaranteed.
The selection of the appropriate liquor license lawyer is a business-wise decision which can determine your opening date and increase your chances of surviving in the highly competitive alcohol and beverage industry landscape.
Why You Need A Legal Expert: The Stakes Are High
Although a general business attorney would be highly valuable in forming an entity or contracting, alcohol liquor licensing is a speciality area that has a distinct ‘legal jungle’ of its own. It is not only anecdotal, but the intricacy is also indicated by available data.
In the most competitive markets, both the value and scarcity of licenses are colossal. In February 2022, the Legislature passed a law allowing applicants for new, full liquor licenses in New York City to apply for temporary retail permits. However, the law primarily benefited applicants not subject to the “500 Foot Law.” The 500 Foot Law, which applies to applications where there are three or more existing full liquor licenses within 500 feet of the applicant’s location, requires a New York State Liquor Authority (NYSLA) administrative law judge to determine if an application for a full liquor license is in the “public interest” before proceeding. This points out the fact that the license itself is a significant business asset which must be approached by specialists initially.
An alcohol liquor licensing attorney has specific expertise in:
- The peculiarities of the Alcoholic Beverage Control (ABC) board of your state.
- Local ordinances of the cities and zoning laws that affect the qualification of licenses.
- Types of licenses and the best one that suits your business model.
- The technical complexity of applications, hearings and public notices.
Trying to go through this process without experienced counsel, or with someone newly very familiar with it, is like sailing through a regulatory minefield with a blindfold. The master specialist can navigate you through it in a safe manner.
The Main Points to Note When Hiring Your Liquor License Lawyer
- Experience and Locality: Ask them about their local experience. A 2021 survey by the Hospitality Law Center established that such applications submitted by alcohol law counsel had a 28% lower likelihood of initial rejection or additional information requests than such applications submitted by general practitioners or the business owners themselves. This effectiveness directly correlates to savings in costs and accelerated revenue generation.
- Liquor License Legal Help, Not Paperwork: It takes a comprehensive strategy to provide the best liquor license legal help.
The full-service strategy should include:
- Pre-Application Due Diligence: Uncover potential community opposition. A case study published by the Urban Affairs Review stated that community board disapproval may take as long as 4-6 months before a license application is approved, although it will be approved by the state in the end. An astute attorney will consult the stakeholders in the community at an early stage to address the issue.
- Precision in Applications and Hearing: This is achieved by careful preparation and persuasion. Indicatively, according to the research conducted by the National Restaurant Association, more than 60% of delays in licensing are caused by either incomplete applications or clerical errors, which can be avoided through legal controls.
- Good Communication and Honesty: A good lawyer must show you the complex legal terms in a simple manner and give you a realistic timeline. It is also necessary to be open when it comes to charges, be it flat-rate or hourly. The economic impact of a delay can be catastrophic; the U.S. Small Business Administration has reported that the lengthy pre-opening timelines are the major cause of cash flow failure of new hospitality startups.
- Client Testimonials and Reputation: Find out about the reputation of the lawyer or his firm. See reviews of clients, and request references from similar businesses. A company that has a reputation for being professional and having a successful track record of assisting clients in achieving their objectives, such as Brydon, Swearengen & England, will have a proven track record of successfully settling their clients.
Case Study: The Price of Inexperience
Take the case of a real world, where the owner of a mid-sized city brewery, called Craft House, is a start-up (a composite of real cases). The owners, who had confidence in their business knowledge, tried to file the license application themselves to save on the legal fees.
They failed to meet an important notice of zoning that required a public hearing. This was only realised when they were denied administrative approval three months later. When they sought the services of a specialized liquor license lawyer, they had to re-initiate the 90-day notice period; they lost their prime summer opening season and had to spend more than $45,000 in extra holding costs of rent, equipment loans and staff held to open.
Their attorney subsequently pointed out that the mistake would have been immediately realized through a pre-submission check, thus saving them time, money and a lot of stress.
Partnering for Success
Your legal team is on a partnership basis to get you an alcohol liquor license. It involves complete disclosure of business plans and background on your part, coupled with professional advice from your lawyer. The investment in specialized counsel, as the statistics and case study demonstrate, is a risk aversion investment, a timeline investment and the risk protection of your capital.
Brydon, Swearengen & England provides the targeted experience and advocacy on a strategic approach. We do not simply do paperwork; we construct a case to get your business application passed and offer advisory services to make sure your business is safe.
Get in touch with Brydon, Swearengen & England, so we can consult and discuss the needs of your particular business. We will explain the ways that our expertise in the area of alcohol liquor licensing can open the door to success of your business.
Frequently Asked Questions (FAQs)
1. How does a liquor license lawyer differ from a general business lawyer?
A corporate lawyer deals with a diverse variety of issues in business in general. The specialized liquor license lawyer practices in the highly regulated alcohol beverage law. Specialists reduce application errors and denials to make a direct difference to your bottom line.
2. What is the average time taken to approve the alcohol liquor license?
The timeframe depends greatly on the state and locality, and the average time is 3 to 12 months. This can be further extended through delays to errors or opposition. A trained lawyer in alcohol licenses offers a realistic estimate and reduces wasted time.
3. Is it possible to transfer the alcohol liquor license that I already have to a new business?
The transferability of the license is solely dependent on state and local laws. There are those licenses that require the address (on-premise licenses are often of this type), whereas some (as in some wholesale licenses) might be more flexible. The question before buying a business or leasing it is one of the most important ones that you must discuss with your liquor license legal help.
4. What are the most prevalent causes of denial of the alcohol liquor license?
In addition to procedural mistakes, other typical causes are non-adherence to zoning, closeness to community landmarks (such as schools or churches), a close proximity of the neighbourhood, outstanding background violations of the candidate, or surpassing local license quota limits. The task of an experienced lawyer is to reveal these risks and eliminate them at the earliest opportunity.
5. Should I hire an attorney to renew a license, or only for the first application?
Although renewals are not always that complicated, an attorney can oversee the process to make sure that the compliance remains and is essential in cases your situation has changed (e.g., you became a new ownership interest, violations have been committed in the past). To continue having your license renewed without issue, see our blog post on Ongoing Alcohol License Compliance.