- Agency
- Kansas Alcoholic Beverage Control for the state license, and the City of Wichita for city liquor and cereal malt beverage licenses
- Paperwork
- A change of ownership notice to the state, a new state license for the buyer and new city license applications
- The clock
- The state and city each allow about 30 days for processing once applications are complete
Watch for: Scheduling a closing before the buyer holds the licenses. Without them the new owner may be unable to pour on day one.
Licenses stay behind
Kansas does not let a liquor license be passed to another person. The state's licensing answers say a license cannot be transferred, and the city's cereal malt beverage information describes that license as non transferable and non refundable.
In practice the buyer applies for its own licenses, and yours end when you close or sell.
Two layers of licensing
The state issues liquor licenses through Alcoholic Beverage Control, and the city adds its own approvals. Wichita's liquor application has an option for a new owner, separate from a new business or a renewal.
For drinking establishments the city asks for a copy of the state license once it is issued, so the paper trail runs in sequence.
Notify the state
The state's licensee information says you must contact Alcoholic Beverage Control when ownership changes. Ask for the current form and have your attorney review it before you sign anything.
Cereal malt beverage licenses
Beer at or under six percent alcohol by volume runs through a cereal malt beverage license issued locally. Wichita publishes its own information sheet and applications for individuals, partnerships and corporations.
A bill to move statewide licensing of these licenses to the state has been discussed, so check whether the process changed before you plan a closing date.
Timing is the hard part
Both the state and the city give themselves about 30 days after applications are complete. Add time for fingerprints, background checks and sign offs.
That is why many bar and restaurant sales set a closing date only after the buyer submits a complete application. Some deals use a short period where the seller keeps operating until approval arrives, but a lawyer must structure that carefully.
What goes in the agreement
- A condition that the buyer receives its licenses before closing
- Who pays the application costs
- What happens to alcohol inventory and the purchase of it
- A date by which either side can walk away
Other approvals
Health and food permits, signage and zoning also matter. Ask the city which ones require the buyer to apply in its own name.
Related reading
For how buyers price the business itself, see how buyers value a restaurant and bar. For the timeline of a sale, read from signed offer to closing day. Ready for a number? Find your price range.
This page is general information and not tax or legal advice. Confirm the rules, forms and timing with your attorney, Kansas Alcoholic Beverage Control and the City of Wichita.