Does a food premises licence transfer automatically, or does the new owner need a fresh inspection?

A food premises approval or licence generally does not transfer automatically to a new owner the way a lease might. Food premises are regulated locally by public health units, and most expect to be notified whenever the operator of a food establishment changes, since their oversight is tied to who is actually running the kitchen and taking responsibility for food safety practices day to day, not just the physical location.

In practice, this usually means the new owner needs to register or reapply as the operator of record, and a fresh inspection is common before or shortly after the changeover, particularly if there's any change to the kitchen layout, equipment, or menu. Assuming you can simply start operating under the seller's existing approval, with no notice to the local health unit, is a common mistake that can lead to an unplanned shutdown right after you've taken over.

Because requirements and timelines can differ between municipalities and health units, confirming the specific process directly with the local public health unit early in the deal, and building any required inspection or approval into the closing conditions of the purchase agreement, protects the buyer's ability to actually open on schedule.