A Florida quota license is the most flexible liquor license the State issues. It allows the holder to sell beer, wine, and distilled spirits without the food-sales, seating, and square-footage requirements that come with special licenses. Because the number of quota licenses in each county is capped by section 561.20, Florida Statutes, they are scarce, and that scarcity drives their value.
What Is a Florida Quota License?
A Florida quota license is a liquor license issued under section 565.02(1) and subject to the population limit in section 561.20(1). The most common version is the 4COP license, which permits the sale of beer, wine, and liquor for consumption on the premises and in sealed packages for consumption off the premises. That makes it suitable for bars, nightclubs, package stores, and restaurants that do not want to be bound by a food-revenue requirement.
The license is issued by the Division of Alcoholic Beverages and Tobacco (ABT) within the Department of Business and Professional Regulation. It is valid only within the county where it was issued.
Why Florida Quota Licenses Are Limited
Section 561.20(1) caps the number of quota licenses in each county at one license for every 7,500 residents. New licenses become available when a county’s population grows by another 7,500 residents, measured against the April 1, 1999 population estimate and the State’s annual population estimates since then. Every county that allows liquor sales is entitled to at least three licenses.
Licenses also return to circulation when a quota license is cancelled or revoked. Under section 561.20(6), no single licensee may hold a direct or indirect interest in more than 30 percent of the licenses authorized for a county.
Quota License vs. Special Restaurant License
Many restaurants instead hold a special food service license under section 561.20(2)(a)4. That license is not counted against the quota, but it comes with conditions. The restaurant must have at least 2,000 square feet of service area, be equipped to serve 120 people at one time, have at least 120 seats, and derive at least 51 percent of its gross food and beverage revenue from food and nonalcoholic beverages. Failure to meet the percentage results in revocation.
A special restaurant license also cannot be moved to a new location or used to operate a package store. A Florida quota license carries none of those restrictions, which is why operators who expect heavy bar sales, or who want flexibility to relocate within the county, often pay a premium for one.
How to Get a Florida Quota License
There are two ways to obtain a Florida quota license: win the State’s annual drawing, or buy an existing license from a current holder.
The drawing. When new licenses become available and there are more applicants than licenses, ABT selects applicants by a double random public drawing under section 561.19. Key rules:
- Each entry costs a $100 filing fee.
- ABT will not include more than one application from any one person, firm, or corporation in a county’s drawing.
- A selected applicant has 45 days from the date ABT mails the notice of selection to file a full license application.
- A new quota license carries a one-time $10,750 initial license fee, in addition to the annual state license tax.
- The annual license tax depends on county population. For on-premises consumption in a county over 100,000 residents, it is $1,820.
If the winner is not ready to operate, the license can be held in inactive status and activated later at a qualifying location. For an example of a recent drawing, see our post on the 2026 Florida quota liquor license drawing.
Buying an existing license. Quota licenses trade on a private market, and prices vary widely by county and demand. A transfer requires a bona fide sale and ABT’s approval of the buyer under section 561.32. For a Florida quota license, the transfer fee is 4 mills on the average annual gross alcohol sales for the prior 3 years, capped at $5,000.
Transfer Limits on a New Florida Quota License
A license issued through the drawing cannot be freely flipped. Under section 561.32(4), a new Florida quota license may not be transferred, directly or indirectly, for 3 years after it is first issued, except through probate or guardianship. That restriction reaches changes in stock, partnership shares, or other ownership of the entity that holds the license.
A transfer within the 3-year period is allowed only on payment of a transfer fee equal to 15 times the county’s annual license fee. Any attempted transfer that violates the rule is void, and the license is deemed abandoned and reverts to the State.
Practical Points for Buyers, Sellers, and Lenders
For buyers, due diligence matters as much as price. Confirm the license is active and in good standing, check for liens perfected under section 561.65, and ask whether ABT has noticed any pending administrative action. Under section 561.32(2), a pending revocation or suspension proceeding can stop a transfer.
Before closing, make sure the buying entity and every person with an ownership interest can qualify with ABT, and that the intended location meets local zoning and distance rules. Escrowing the purchase price until ABT approves the transfer protects both sides.
For sellers, gather 3 years of gross alcohol sales records early, because they set the transfer fee. Lenders taking a Florida quota license as collateral should perfect their security interest under section 561.65, since an unperfected interest may be lost if the license is revoked.
Contact Cox Law, PLLC
If you are buying, selling, financing, or applying for a Florida quota license, Cox Law, PLLC advises hospitality clients throughout Florida. Contact us for a consultation by calling (813) 685-8600 or emailing Webquestion@Coxlawplc.com.
Disclaimer: The information provided on this page is for general informational purposes only and does not constitute legal advice. No attorney-client relationship is formed by reading this content or contacting Cox Law, PLLC through this website. Every legal situation is different, and you should consult with a qualified attorney regarding your specific circumstances. Statutory references, fees, and deadlines should be confirmed against current sources before you rely on them.