Overview
The Landscape
Restaurants, hotels, bars, and entertainment venues operate at the intersection of real estate, licensing, employment, and brand — all at once, under intense operational pressure. Shah Grossi has spent years developing deep expertise in hospitality law, advising some of the most recognized operators in Los Angeles and beyond.
Key Legal Challenges
- —Negotiating commercial leases with complex build-out, ventilation, and signage requirements
- —Obtaining and transferring ABC liquor licenses through the California Department of Alcoholic Beverage Control
- —Managing a large hourly workforce under California's strict labor code
- —Protecting brand identity across locations and in franchise arrangements
- —Navigating health code compliance, ADA requirements, and local permitting
Common Scenarios
Problems We Solve
- 01
A restaurant sale closes on the assets but the liquor license has not transferred — and the buyer begins operating under the seller's license, a common and serious compliance violation.
How we help: Liquor Licensing · ABC License Transfer article
- 02
Meal and rest periods are on paper but not in practice across a high-volume operation — triggering premium-pay penalties that compound across every shift and every pay period.
How we help: Labor & Employment · Wage & Hour Traps article
- 03
A multi-unit operator signs location leases without the restaurant-specific terms — exhaust, signage, exclusivity, TI allowance — that determine whether each location can actually succeed.
How we help: Real Estate & Commercial Leasing · Commercial Lease article
- 04
A successful concept considers franchising or multi-unit licensing but does not have the brand documentation, operating standards, or FDD in place to expand legally.
How we help: Franchise & Distribution · Expansion & Growth
Our Work
How We Help
Restaurant and hotel lease negotiation and review
Full ABC licensing — new applications, transfers, modifications, and defense
Employment handbooks, tip pool compliance, and wage-and-hour audits
Franchise documentation and multi-unit development agreements
Entity formation and corporate structuring for restaurant groups
Vendor contracts, management agreements, and licensing deals
Legal Services
Related Practice Areas
Common Questions
Frequently Asked
Q.How long does an ABC liquor license transfer take in California?
A typical person-to-person transfer runs 45 to 90 days from application filing. Premises-to-premises transfers take longer. Applications that draw protests during the 30-day posting period can extend to 4 to 6 months. Buyers signing leases or build-out contracts that depend on license-transfer timing should budget conservatively and structure the purchase agreement to handle the gap.
Related: Liquor Licensing practice
Q.Are my servers, cooks, and delivery drivers independent contractors or employees?
Almost always employees under California's AB5 ABC test. Most hospitality roles fail Prong B of the test — the work is squarely within the usual course of the restaurant's business. Misclassification carries retroactive wage, meal/rest, tax, and penalty exposure that compounds quickly. Delivery drivers for the restaurant's own operation are generally employees; third-party platform drivers are treated differently under Prop 22.
Related: Labor & Employment
Q.What should I watch for in a restaurant commercial lease?
Exhaust and ventilation rights, grease-trap access, signage, exclusive-use clauses, operating-hour flexibility, realistic TI allowance, and liquor-license cooperation. Personal guarantees should be negotiated down to good-guy form. Assignment and subletting rights must allow a future sale of the business. The LOI stage is the most important negotiation window — once terms are in the LOI, moving them during lease drafting is much harder.
Related: Commercial Leasing
Q.Do I need a franchise disclosure document to license my concept to other operators?
Likely yes. The FTC Franchise Rule defines a franchise broadly — if the arrangement includes a trademark license, significant ongoing control, and a required payment, it is almost certainly a franchise regardless of what the parties call it. Operating as a "license" or "joint venture" when the facts meet the franchise test creates serious regulatory and rescission exposure. An FDD and state registrations are the compliant path.
Related: Franchise & Distribution · Franchise Systems
Q.What compliance structure should a restaurant group have?
A holding company with separate operating entities for each location limits liability across sites. Each operating entity should have compliant corporate records, employment documentation, insurance, licenses, and permits. Centralized services (accounting, HR, IT) are typically handled through intercompany service agreements. Periodic employment and ABC compliance audits catch issues before they mature into litigation or regulatory action.
Related: Business Law · Risk & Compliance
Ready to Discuss
Your Hospitality Matter?
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