By Rémi Dudreuil, Managing Director of Cabinet Licence 4
Updated on
Who buys a Licence III?
The Licence III, or restricted licence, allows drinks from groups 1 and 3 to be served on the premises: wines, beers, ciders, perries, meads and wine-based aperitifs up to 18% ABV. It does not allow spirits.
It therefore appeals to specific concepts: wine bars, beer bars, wine and small-plates bars, delicatessens with tastings, tea rooms or restaurants that want to serve outside meals. These entrepreneurs contact us every week.
An old Licence II? Since 2011, the 2nd-category licence no longer exists: Licence IIs were converted into Licence IIIs. They are therefore sold as Licence IIIs.
What makes a Licence III valuable
Unlike the Licence IV, a Licence III can still be created, but only where the number of 3rd and 4th-category establishments stays below the threshold of one per 450 residents (Article L3332-1 of the French Public Health Code).
In towns that have reached this threshold, no new Licence III can be opened: existing licences become rare and sought after. Elsewhere, the buyer can sometimes create one, which weighs on the price. That is the first thing we check for your town.
Buyback or sale to a buyer
| Buyback by the firm | Sale to a buyer | |
|---|---|---|
| Who buys | Cabinet Licence 4 | An entrepreneur from your area |
| Timing | Signature and payment within 48 hours | Depends on demand for your licence |
| Price | Firm offer, known from the valuation | The best price on the local market |
| Conditions precedent | None: no transfer or loan condition | Those agreed with the buyer |
| Fees for you | None | None |
Both options start with the same free valuation of your Licence III. Nothing commits you until you sign.
The steps in selling a Licence III
- ValuationYou give us the town and your contact details. Within 24 working hours, an expert calls you with the price of your Licence III and our buyback offer.
- Licence checkWe check its category, its holder, the date it was last operated and its history, so that it can be presented with no grey areas.
- Buyback or search for a buyerYou accept our buyback offer, or we present your licence to entrepreneurs whose premises can receive it.
- Sale contractOur lawyers draw up the contract and gather the documents. You sign, and the price is paid to you.
- Transfer and closingWe follow up the formalities at the town hall and, if the licence moves to another town, the prefecture's authorisation.
Licence III or IV: check your category
The category is shown on the declaration receipt issued by the town hall. If you no longer have it, the town hall where the licence is operated can give you its references.
Not sure? Choose the one that seems right in the form: your expert checks the category with you when they call.
Sell before the five-year expiry
A Licence III that has not been operated for more than five years is cancelled (Article L3333-1 of the French Public Health Code). It can then no longer be sold or transferred.
If your premises are closed, keep an eye on the time left: the buyer must be found, the contract signed and the formalities completed before the deadline. Our calculator gives you the deadline in a few seconds.