What to Look for on a Premises Licence Before Buying a Licensed Premises

What to Look for on a Premises Licence Before Buying a Licensed Premises

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Buying a pub, bar, restaurant, or any licensed venue can be an exciting investment. However, before you commit, there’s one document you should examine in detail: the Premises Licence.

Barmaid pouring an alcoholic drink

The Premises Licence is the legal foundation of the business. It defines what activities are allowed, when they can take place, and under what conditions. If you overlook key details, you could inherit serious restrictions, unexpected costs, or even compliance problems that put your new business at risk.

Here’s a complete guide on what to look for before you buy.

1. Check Who Holds the Premises Licence

The first step is to confirm who the current licence holder is. If the premises licence is held by a company or individual who will no longer be involved once the business is sold, you will need to arrange a licence transfer immediately. Failing to do this means the premises cannot lawfully sell alcohol — and that can halt your business before it even begins.

2. Confirm the Designated Premises Supervisor (DPS)

Every premises selling alcohol must have a Designated Premises Supervisor, and they must hold a valid Personal Licence. When you take over:

• You will need to vary the DPS if the current DPS won’t remain.

• The new DPS must have a valid personal licence in place before they’re appointed.

  
  

The DPS plays a critical role, so check this early in the process.

3. Review the Permitted Hours

A common mistake for new buyers is assuming the premises can trade whenever they like. The Premises Licence will clearly set out the permitted hours for:

• Sale of alcohol

• Late night refreshment

• Regulated entertainment (music, dancing, events, films, etc.)

  
  

If you plan to operate:

• Later hours

• Live entertainment

• Events that the current licence doesn’t allow

  
  

…you will need a variation, which can take time and may attract objections. Make sure the hours fit your business model.

4. Look Closely at the Licence Conditions

The conditions attached to the Premises Licence are often the most important — and the most costly — part of due diligence. Conditions are legally enforceable and may include:

• CCTV requirements

• Door staff (SIA) conditions

• Noise controls or soundproofing requirements

• Age verification policies (e.g., Challenge 25)

• Incident and refusal log requirements

• Restrictions on outdoor areas

• Capacity limits

• Restrictions on drinks promotions

• Conditions relating to glassware or plastic alternatives

  
  

Each condition can impact staffing, equipment, and operational costs. If a licence has a long list of strict conditions, ask why — it may be a sign of past issues.

5. Check the Licensed Plan

The licensed plan is part of the Premises Licence. It shows the approved layout of the premises, including:

• Entrances and exits

• Fire escapes

• Bar counters

• Fixed structures

• Areas where alcohol can be sold or consumed

  
  

If the layout of the building doesn’t match the plan, you could face enforcement action. Any changes to fixed bars, walls, or licensable areas require a variation before you can legally trade. This is one of the most overlooked risks during a sale.

6. Review the Licence History

Before committing, investigate the premises’ compliance history:

• Have there been licence reviews?

• Any noise complaints or police interventions?

• Have conditions been added due to past problems?

• Was the premises ever closed temporarily?

  
  

A history of issues could mean you inherit a reputation problem — and possibly increased scrutiny from authorities.

7. Understand Ongoing Responsibilities and Costs

Owning a licensed premises comes with ongoing legal responsibilities, including:

• DPS duties

• Annual licence fee

• Staff training obligations

• Maintaining an age verification policy

• Record keeping

• Ensuring right-to-work compliance

• Managing incidents and refusals

  
  

Make sure you fully understand what will be required once the business becomes yours.

8. Importance of Professional Guidance

Navigating the complexities of a Premises Licence can be daunting. Seeking professional guidance is crucial. Experts can help clarify the details and ensure you understand all aspects of the licence. This can prevent future complications and ensure your investment is secure.

9. The Role of Compliance in Business Success

Compliance is not just a legal obligation; it’s a cornerstone of successful business operations. Understanding the requirements of your Premises Licence can help you build a reputable establishment. This, in turn, can lead to customer trust and loyalty.

Final Thoughts on Premises Licence Review

A Premises Licence is more than just paperwork — it defines how your business can operate. Before buying a licensed premises, take the time to carefully review:

• Licence holder details

• DPS status

• Operating hours

• Conditions

• Layout plan

• Compliance history

• Ongoing responsibilities

  
  

If anything is unclear, seeking professional advice can save you time, money, and serious legal trouble down the line.

Need help reviewing a Premises Licence before purchase?

Our licensing consultants can assess the licence, identify risks, and guide you through transfers, variations, and compliance.

Licensing Professionals