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Arizona Liquor License When You Sell a Bar or Restaurant

Reviewed October 27, 2026 by the Mesa Business Brokers Group team

For many bars and restaurants, the liquor license is one of the most valuable things on the table. Mesa Business Brokers Group explains how Arizona handles it when the business changes hands.

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A restaurant owner and a buyer talk at the end of a polished wooden bar in an empty dining room before opening, papers spread on the counter
Who filesThe buyer applies; the seller signs the surrender authorization and keeps the license active
WhereArizona Department of Liquor Licenses and Control, with the local city or town also weighing in
WhenStart well before closing; an interim permit can bridge the gap while the application is pending

Before closing: Do not let your license lapse or go unused before closing; the buyer's plan may depend on it being valid.

Why the License Matters So Much

A restaurant that serves beer, wine and cocktails earns a good share of its profit from drinks. A bar earns most of it there. If the buyer can't keep serving after closing, the business is worth far less. So the license gets attention early in every deal.

Arizona has many license types, called series. Two come up most often in East Valley sales.

Series 6 Bar Licenses

A Series 6 license allows the sale of all types of spirits, beer and wine for drinking on site, and it comes with some off site sale privileges. Series 6 licenses are limited by a population based quota, so new ones are hard to get directly from the state.

That scarcity is why a Series 6 license can carry real value of its own. These licenses can move to a new owner, and sometimes a new location, with the Department's approval. The process involves an application, fees and sometimes a public hearing.

Series 12 Restaurant Licenses

A Series 12 license is for restaurants. There is no quota, so new ones can be applied for at any time. In exchange, the restaurant must earn at least 40% of its gross revenue from food.

Because anyone qualified can apply, a Series 12 license usually adds less to the sale price than a Series 6. The buyer generally applies for its own, and must keep up the food sales requirement.

Your food and drink sales records matter here. A buyer will want to see that the restaurant meets the food share comfortably.

The Interim Permit

Liquor applications take time. An interim permit lets sales continue at a location while an application is pending, as long as there is a valid license of the same type there. It keeps the doors open and the bar running between closing and approval.

Transfer and interim permit applications include a license surrender authorization signed by the current licensee. That means you, as the seller, have a role even after you hand over the keys. Plan for it in the purchase agreement.

The City Has a Say

New liquor applications generally go to the local governing body, such as the Mesa or Gilbert city council, for a recommendation before the state decides. Neighbors can sometimes weigh in. Ask the buyer's attorney how long local review is taking.

How It Shows Up in a Deal

  • The purchase agreement is usually conditioned on the buyer getting license approval.
  • Part of the price may be assigned to the license itself, especially a Series 6.
  • The seller agrees to keep the license active and in good standing until closing.
  • The parties agree how to handle the gap with an interim permit.

Any violations on your record can complicate things. A clean history helps the transfer and the buyer's confidence.

Training and Staff

Buyers who are new to liquor service need trained managers and servers. Your staff's experience and training records can make the handoff smoother and reassure both the buyer and the Department that the business will keep following the rules.

Other Steps for Restaurants

Restaurants also deal with TPT, which applies to food and drink sales. A buyer will want proof it is paid; see Arizona TPT successor liability when you sell a business.

Your lease may be as important as the license. Restaurants near ASU and Mill Avenue are a good example; see business brokers serving Tempe, AZ.

A Typical Order

  1. Confirm your license series, status and any conditions with the Department.
  2. Gather food and alcohol sales records for the buyer.
  3. Sign a purchase agreement that sets the license as a condition.
  4. The buyer files its application and, if needed, an interim permit request.
  5. Close, and hand over operations under the interim permit or the new license.

Sources and a Caution

This page draws on the Arizona Department of Liquor Licenses and Control licensing FAQ and forms, along with summaries from Arizona liquor licensing attorneys.

It is general information, not tax or legal advice. Liquor rules are detailed and change, so confirm the details for your business with your CPA or attorney, and with a liquor licensing specialist.

Wondering what your bar or restaurant would sell for? Read how buyers price a small business, then send the form or call (480) 555-0124.

Call (480) 555-0124