What is the estimated range for liquor license costs for The Standardx?
The_Standardx Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of expenditure | Amount | Method of Payment | When due | To whom payment is to be made |
|---|---|---|---|---|
| Liquor license (8) | $30,000 to $400,000 | As agreed | As incurred | Government agency or previous license holder |
Liquor license.
Liquor license costs vary widely depending on the jurisdiction.
In most jurisdictions, the cost will be on the low end of the range, but could be on the high end (or even exceed the high end) in those jurisdictions that consider a liquor license to be an asset.
You may be able to apply for a full spirits liquor license and pay standard costs for this license that would be on the lower end of the estimate.
However, if your property is located in a "quota" city or state, you might need to locate and purchase a full spirits liquor license on the open market, which could mean your anticipated costs are on the mid-to-high range of this cost estimate.
If you purchase a liquor license on the open market, you may be able to re-sell your liquor license in those jurisdictions to another licensee if you sell your Hotel.
The liquor license that you apply for or purchase must include beer, wine and full spirits, as allowable under applicable law in the Hotel's jurisdiction.
If you engage a third party to be the F&B Operator (defined in Item 8), depending on the jurisdiction, you might not need a liquor license.
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 36–40)
What This Means (2025 FDD)
According to The Standardx's 2025 Franchise Disclosure Document, the estimated cost for a liquor license ranges from $30,000 to $400,000. These costs are paid as incurred to either a government agency or the previous license holder. The wide range in price accounts for the variability in liquor license costs depending on the jurisdiction.
The FDD notes that in most jurisdictions, the cost will likely be on the lower end of the range. However, in areas where a liquor license is considered an asset, the cost could be higher, even exceeding the upper end of the estimated range. If the property is in a "quota" city or state, The Standardx franchisee might need to purchase a full spirits liquor license on the open market, potentially incurring costs in the mid-to-high range of the estimate.
The FDD specifies that the liquor license must include beer, wine, and full spirits, as permitted by local law. Furthermore, if a third party is engaged as the F&B Operator, the franchisee might not need a liquor license at all, depending on the jurisdiction. If the franchisee purchases a license on the open market, they may be able to resell it to another licensee if they later sell their The Standardx hotel.