By Rémi Dudreuil, Managing Director of Cabinet Licence 4
Updated on
Why a Licence IV sells well
In principle, no new Licence IV can be created in France: a bar, restaurant or hotel that wants to serve spirits has to buy an existing licence. That is what gives yours its value, even if your premises are closed.
Your licence can also find a buyer beyond your town. It can be transferred anywhere in the département, and even to a neighbouring département, with the prefecture's authorisation. Your market is much wider than your street.
Every month, around 800 entrepreneurs contact the firm to find a licence. That is where we look for the buyer of yours.
Immediate buyback or sale to a buyer: two ways to sell
| 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 IV. Nothing commits you until you sign.
The steps in selling a Licence IV
- ValuationYou give us the town and your contact details. Within 24 working hours, an expert calls you with the price of your Licence IV 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.
The documents to gather
- The declaration receipt for the licence issued by the town hall (it shows the category)
- Proof of the last period of operation: accounts, tax returns or invoices of the business
- An identity document of the holder and, if the licence belongs to a company, a Kbis extract (company registration certificate)
- The holder's operating permit (permis d'exploitation), if available
Missing a document? Let us know at the valuation stage: we will help you find it or have it issued.
Sell before the five-year expiry
A Licence IV 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.
What can complicate a sale, and how we anticipate it
The last Licence IV in the town
When your licence is the only one of its category in the town, transferring it to another town requires the mayor's approval. We know this from the valuation and steer the sale accordingly, for example towards a buyer in the same town.
Insolvency proceedings
In receivership or compulsory liquidation, the sale goes through the administrator or the liquidator. Tell us on the first call: the licence keeps its value, but the sale follows a specific route.
An administrative or court-ordered closure
A permanent closure ordered by a court can lead to the licence being cancelled. A temporary closure does not prevent a sale, but the buyer must be informed of it.