Landlord Leasing Out Liquor License

[vdo167]

San Francisco, California

I was curious what liabilities would a landlord assume if they own the liquor license for the bar/restaurant of the property they own and lease it out to a tenant.

Thanks

 

[FlyingRon]

The licensee of a bona fide food public eating place may lease out the concession (including alcohol sales) on the premises provided the lessee meets the requirements of a licensee.
The licensee is responsible for ANY violations that the lessee commits.

 

[vdo167]

Is there any protection that can be gained by putting the license in an LLC along with the builidng in another LLC?

We don't mind having some liabitilites but wanted to know how to minimize the risk if there's a bad tenant in there. Is this something that is commonly done or should be avoided?

 

[FlyingRon]

Is there any protection that can be gained by putting the license in an LLC along with the builidng in another LLC?

We don't mind having some liabitilites but wanted to know how to minimize the risk if there's a bad tenant in there. Is this something that is commonly done or should be avoided?

No. The lease of the BUILDING has nothing to do with it. It's the sales/service of meals that is leased out. No matter what sort of games you plane the licensee IS responsible for violations committed by the lessee using his license.

If you want to avoid liability, lease them the SPACE only and tell them to get their own license.