For The Standardx, what factors determine the cost of a liquor license?
The_Standardx Franchise · 2025 FDDAnswer from 2025 FDD Document
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 cost of a liquor license can vary significantly based on the jurisdiction where the hotel is located. The FDD indicates that in most jurisdictions, the cost will be on the lower end of the estimated range. However, in areas where a liquor license is considered an asset, the cost could be much higher, potentially exceeding the high end of the estimated range. The estimated initial investment for a liquor license is between $30,000 to $400,000.
Another factor influencing the cost is whether the property is in a "quota" city or state. In such locations, franchisees might need to purchase a full spirits liquor license on the open market, which can drive the costs towards the mid-to-high range of the estimate. The type of license also matters; The Standardx requires that the liquor license includes beer, wine, and full spirits, as permitted by local laws.
It's worth noting that if a franchisee engages a third party to be the F&B Operator, they might not need a liquor license at all, depending on the jurisdiction. This could significantly reduce the initial investment required. Additionally, if a franchisee purchases a liquor license on the open market, they may have the option to resell it to another licensee if they later sell their The Standardx hotel, potentially recovering some of the initial cost.
Prospective franchisees should investigate the specific regulations and market conditions in their chosen location to accurately estimate the cost of a liquor license. Consulting with local authorities and experienced business advisors is crucial to understanding the potential financial implications.