Transferring or Selling a Food Business

Food business registrations and licences do not automatically transfer when you sell or buy a business. In most Australian states and territories, a registration is tied to the operator and premises, not the business name, so the seller must notify the council and the new owner must lodge their own notification or application before trading. Always confirm the exact process with your local council and state or territory regulator. Key takeaways: A food business registration or licence is generally tied to the operator and premises, not the business name, so it does not automatically pass to a new owner.. The seller should notify the council of the change and, where required, cancel or surrender their existing registration.. The new owner must lodge their own food business notification or registration/licence application before they start trading.. A food safety supervisor and, in many cases, staff food handler training obligations restart under the new operator.. Requirements vary by state, territory and council, so confirm the exact steps with your local council and state or territory regulator early in the sale.. Registrations don't transfer with the sale One of the most common and costly misunderstandings in a food business sale is assuming the registration or licence "comes with" the business. In most Australian jurisdictions it does not. Under the food safety framework built on the Australia New Zealand Food Standards Code and state and territory food acts, a food business must be registered or notified to the relevant enforcement agency (usually the local council). That registration is generally held by a specific proprietor for a specific premises. When ownership of the business changes, the person legally responsible for the business changes, so a fresh registration or notification is normally required in the new operator's name. Buying the business, the fit-out, the stock and the goodwill does not transfer the legal authority to operate. Confirm how your council treats change of ownership, because the terminology and process vary. Notification vs registration vs licence The type of approval you hold affects what happens on sale. Lower-risk businesses (for example, those selling only pre-packaged shelf-stable food) may only need to "notify" the enforcement agency of their existence. Higher-risk businesses that handle unpackaged, potentially hazardous food typically need to be "registered" or "licensed", sometimes with an inspection before approval. In every case the underlying obligation attaches to the operator. On a change of ownership, a notification generally needs to be re-lodged by the new operator, and a registration or licence generally needs to be cancelled or surrendered by the seller and re-applied for by the buyer. Some councils will not simply amend the name on an existing registration; they treat a new proprietor as a new application. Notification: lowest-risk businesses; the new owner re-notifies the enforcement agency.. Registration: most cafes, restaurants and takeaways; usually cancelled by seller and re-applied for by buyer.. Licence: used in some states or for specific activities; check whether a fresh licence and inspection are needed.. Seller obligations when you sell As the seller, you remain the responsible food business proprietor until your registration is properly ended and the new owner is approved. Notify the council in writing of the change of ownership and the date of settlement, and follow their process to cancel or surrender your registration. If you do not, you may continue to receive inspection notices, renewal invoices or be treated as the responsible party for issues that arise after settlement. Keep copies of all correspondence. If you are closing rather than selling, tell the council the business has ceased so your registration is cancelled and any renewal cycle stops. It is also good practice to hand over food safety documentation to the buyer, such as your food safety program, cleaning schedules and pest control records, where these transfer with the premises. New owner obligations before you trade As the buyer, do not assume you can open the doors on settlement day using the previous owner's paperwork. Contact the local council early to confirm whether you need to notify, register or apply for a licence, and lodge that application in good time. Higher-risk premises may require an inspection before you can legally trade, and any fit-out or menu changes you plan can trigger additional assessment. You also take on the operator's ongoing duties: appointing a food safety supervisor where your state requires one, ensuring food handlers have appropriate skills and knowledge, maintaining temperature and cleaning records, and complying with the Food Standards Code. Building an approval buffer into your settlement timeline avoids the risk of a premises you own but cannot legally operate. Confirm with the council whether you notify, register or licence.. Allow time for any pre-trading inspection.. Appoint a food safety supervisor if your state or territory requires one.. Ensure food handlers have the required skills and knowledge.. Re-establish records: temperature logs, cleaning schedules, pest control, supplier records.. Due diligence before you buy Before committing to a purchase, investigate the compliance history of the premises. Ask the seller for their current registration or licence, recent council inspection reports and any outstanding orders or improvement notices. A history of unresolved issues may mean you inherit problems with the fit-out, equipment or structure that you will need to fix to gain your own approval. Check that the premises design meets food safety and construction requirements, because a new operator's application can prompt the council to reassess the site. Also review any existing food safety program and whether it suits how you intend to run the business. Independent legal and accounting advice on the sale contract is strongly recommended; this guide is general information, not legal advice. Watch for related approvals and details A food business registration is rarely the only approval involved. Depending on your activities and location, you may also need to address planning or development approval, a trade waste agreement, a liquor licence, footpath dining permits, signage approvals, an ABN and business name registration, and workplace, insurance and tax obligations. Like the food registration, many of these do not transfer automatically and must be re-established by the new owner. If the business operates across multiple premises or includes mobile or temporary food activities, each may have its own registration requirement. Use the business.gov.au and ablis.business.gov.au tools to identify the licences and permits that apply to your business type and location, then confirm the specifics with each responsible authority. Checklist: Confirmed the council's change-of-ownership process for this specific premises. Seller notified the council in writing of the sale and settlement date. Seller cancelled or surrendered the existing registration or licence. Buyer lodged a new notification, registration or licence application. Any pre-trading inspection arranged and passed. Food safety supervisor appointed under the new operator (where required). Food handlers' skills and knowledge confirmed. Food safety program and records re-established (temperature, cleaning, pest control, suppliers). Related approvals checked: planning, trade waste, liquor, ABN, business name, insurance. Common mistakes: Assuming the registration or licence automatically transfers with the business name or sale contract.. The buyer trading on settlement day using the previous owner's registration.. The seller failing to cancel their registration and still being treated as the responsible proprietor.. Leaving council approval to the last minute and missing a required pre-trading inspection.. Forgetting to re-appoint a food safety supervisor or refresh food handler training under the new operator.. Overlooking related approvals such as trade waste, planning or liquor that also don't transfer..