Updated November 5, 2026.
A second location doesn’t ride on the first one’s paperwork. In Tennessee, each new bar or restaurant needs its own liquor license and its own local beer permit. If investors help pay for it, every new owner goes through a state review.
None of that should stop a growing business. It does mean the legal work for location two starts earlier than most owners expect, often before the lease is signed. Here’s what changes when you grow.
Each location gets its own licenses
Your current liquor license doesn’t cover a new address. Each new location goes through its own Tennessee Alcoholic Beverage Commission (TABC) application, with its own lease or deed, its own inspection, and its own health permit.
Beer works the same way at the local level. Tennessee law ties a beer permit to one owner, one location, and one business name, and it can’t be moved to a new address (T.C.A. 57-5-103). Your second location needs a new permit from that city or county’s beer board. Our beer permit page covers the process.
Local timelines vary, too. In our count of Metro Nashville beer board agendas this year, new locations took about 81 days to win approval at the median. Our guide to how to get a liquor license in Tennessee walks through the state side step by step.
A new city can mean new rules
Tennessee lets local voters decide whether liquor by the drink is allowed. The city you’re eyeing for location two may not allow what your first city does. Check that the new address is in a place that has approved liquor by the drink before you sign anything. Our guide to dry counties in Tennessee shows where the gaps are.
Beer boards also set their own schedules and requirements. A process you know well in one county can look different one county over, and the new board’s meeting calendar may decide your opening date.
New investors mean a new ownership review
Many owners bring in investors to pay for a second location. That money comes with a licensing step.
The TABC reviews every layer of ownership, down to the people who own the business in the end. It also screens owners for problems that can block a license. Those include certain criminal convictions and a conflicting stake elsewhere in the alcohol industry. Tennessee’s three-tier system generally keeps suppliers, wholesalers, and retailers separate. An investor with a stake in a distributor or a brand needs a closer look.
Before you take the money, find out who the new owners are, what percentage each will hold, and whether anything in their background could slow the license. It’s far easier to sort out before the deal closes.
Decide how to structure the business
Owners often ask whether each location should be its own LLC. Separate entities can help keep one location’s problems from reaching the other. They also mean more filings, more tax accounts, and more names that have to match on every document. There’s no single right answer. The best structure depends on your investors, your lenders, and how you plan to run the locations.
Whatever you choose, keep the legal name consistent. The name on each location’s lease has to match the name on its license application, and mismatches are one of the most common reasons applications stall.
Read every lease with the license in mind
Landlords often negotiate differently with an owner who already has a successful location. That can mean better terms, but multi-unit leases can also come with more complex provisions, like guarantees that tie locations together.
For the license itself, the same rules apply at every address. The lease should name the right business entity, give you exclusive use of the space, and generally run at least one year past your application date. If the landlord takes a share of alcohol sales, the TABC will want to see it. A share of 10% or more could keep a license from being approved.
If you plan to franchise
Franchising your concept is a different kind of growth with its own federal rules. The Federal Trade Commission’s Franchise Rule applies. A franchisor generally has to give a buyer its disclosure document at least 14 calendar days before the buyer signs or pays anything (16 C.F.R. 436.2). Each franchisee also needs its own Tennessee licenses for its own location. Bring in counsel early if franchising is on the table.
Where BevLaw Group fits
A second location is a natural time to bring in a legal partner. BevLaw Group handles licensing for each new location. Our flat monthly plans also cover lease and vendor contracts, ownership questions, employment guidance, and regulatory defense across all your locations.
If location two is on your calendar, the best time to talk is before you sign the lease.