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Who it's for
Due diligence before buying a restaurant, café, bar or pub means more than checking the books. The licence and planning permit decide the hours, patrons, area and music allowed, so they decide what it's worth. This is for you if:
- You've found a venue and haven't signed yet
- Your contract is subject to due diligence or the licence transfer
- Your broker or accountant wants the licence and permit checked
- The venue trades late, outdoors or with live music
Not you? Selling instead? See selling a venue.
What you see trading may not be what is approved. Late hours, an outdoor area or live music may not be on the licence or permit at all.
Due diligence when buying a restaurant, café or bar: what we check
- Licence and conditions — The licence type, hours, capacity and every condition, read for what it means on a busy night.
- Red line plan against how it trades — Whether the areas in use sit inside the plan showing where liquor can be served. → /liquor-licence/red-line-plan
- Planning permit and conditions — What council approved, including any limits on hours, patrons or music.
- Old liquor conditions — Conditions from the old clause 52.27 liquor permission, which may no longer have effect after VC286. → /planning-permits/liquor-conditions
- Zone — Whether the use needs a permit at all, and any overlays such as heritage.
- Compliance history — Notices or letters from council, Liquor Control Victoria (LCV) or police, where the seller can provide them.
- Footpath permits — Whether outdoor tables have a council permit and are on the licence.
What you see trading may not be what is approved
A courtyard gets a bar, the hours creep later, a DJ starts on Fridays. None of that changes the licence or permit, and after settlement the questions come to you, not the seller.
For each gap we tell you what the fix would take, such as a licence variation or a permit amendment. Then you can price it in, ask the seller to fix it, or walk away.
Speak with Jacob
Principal. Twelve years running venues and working inside local government.
The first conversation is free.
Book a 15-minute call(03) 7064 8477We reply within 24 hours.
How it works
Four steps, fitted to your contract dates.
- 15-minute call Tell us the venue and your deadline. We fix the fee.
- Send the documents Upload the contract, licence, red line plan and permit to your client portal, our online form.
- We check and compare We read every document and compare it with how the venue actually trades.
- You get a plain-words report What you're buying, what's missing, what it would take to fix, and what to raise with your solicitor before you sign.
Fees and timing
One fixed fee, quoted before we start.
- Pre-purchase check
- Fixed fee, quoted before we start
- Turnaround
- Agreed to suit your contract deadline
- Licence transfer
- Fixed fee, quoted before we start; LCV's fees extra
What we need from you
Send what you have.
- The venue address and your contract or heads of agreement
- The current liquor licence and red line plan
- The planning permit and endorsed plans
- Any footpath trading permit
- Any notices from council, LCV, police or the EPA
Questions
What should I check before buying a hospitality business?
Check the licence and its conditions, the red line plan, the planning permit and its conditions, the zone, any footpath permit and any compliance history. Then compare all of it with how the venue actually trades. Anything that isn't approved can't be relied on after settlement, even if the seller has traded that way for years. Our buying a venue checklist sets out the full list.
How do I check a liquor licence before buying?
Get the current licence and red line plan from the seller and read every condition, not just the hours. Check that the licence type suits how you want to trade and that the red line plan matches where people actually drink. Then check the planning permit, because it sets the ceiling on what the licence can ever be. We do all of this as part of the check.
What if the venue trades outside its permit?
Then you'd be buying a business that relies on something it isn't approved to do. Before you sign, find out what the fix would take: a permit amendment, a licence variation or, sometimes, nothing, if it's an old liquor condition that no longer applies after VC286. Then you can negotiate the price, or ask the seller to fix it first.
Can I make the contract subject to the licence transfer?
Yes, and you should. A transfer can be timed to settlement, and making the contract subject to it means you aren't committed if it isn't approved. Victoria Police can object to a buyer's suitability, so the clause matters. We're consultants, not lawyers, so talk to your solicitor about the exact wording. Our page on licence transfers explains the rest.
How long does a pre-purchase check take?
It depends on the venue and how quickly documents arrive, so we agree the turnaround on the first call to fit your contract deadline. A café with a simple licence is quicker than a pub with a long permit history. The usual delay is waiting on the seller's documents, so ask for them as soon as you're serious about buying.