By Rémi Dudreuil, Managing Director of Cabinet Licence 4
Updated on
A value set by the market, not by the State
No official scale sets the price of a Licence IV. It is freely negotiated between seller and buyer, and depends on what an entrepreneur is prepared to pay to be able to serve spirits in their establishment.
As the creation of new Licence IVs is in principle prohibited, supply is limited: that is what gives each existing licence its value.
The six criteria that set the price
1. The town
Large cities, the coast, ski resorts and tourist towns concentrate demand. A licence is worth more there than in a sparsely populated rural area.
2. Possible transfers
A licence can be transferred within the département and, with the prefecture's authorisation, to a neighbouring département. The more dynamic the towns it can move to, the more it is worth.
3. Local scarcity
The number of licences available in the area, compared with the number of projects looking for one.
4. The date it was last operated
A licence approaching five years without operation leaves little time to sell and transfer it: its value falls.
5. Its legal situation
An identified holder, up-to-date declarations, no blocking proceedings: a licence in good order sells faster and for more.
6. The context of the sale
Licence alone or with the business, a quick sale or the best price: the price you obtain also depends on your timetable.
Why two Licence IVs aren't worth the same
Two licences identical on paper, one in a tourist town where every licence is taken, the other in a village whose only bar has closed, don't attract the same buyers. Their prices can differ widely.
That is why we don't publish a price list: your expert sets the price for your town.
Licence alone or with the business
The licence is one of the elements of the business (fonds de commerce). It can be sold with it, or on its own: the buyer then transfers it to their own premises.
Selling the licence separately often gets a better price, especially when the business itself is hard to sell.
Tax on the sale
The sale of a licence operated by a business can generate a business capital gain: the difference between the sale price and its book value. Exemption schemes exist, in particular for small businesses and on retirement.
Your accountant will tell you which scheme applies to your situation.