Can a bar's entertainment or patio licence be transferred separately from the liquor licence?

Yes, and this is a detail that's easy to miss when a buyer focuses only on the liquor licence itself. A bar or restaurant's liquor licence, its municipal patio permit or encroachment agreement, and any entertainment-related licensing (for live music, dancing, or similar) are often issued by different authorities — the provincial liquor regulator for the liquor licence, the municipality for patio and entertainment approvals — and each has its own application and approval process that doesn't automatically follow from getting the others in place.

A new owner who successfully secures approval to serve alcohol can still find themselves without the ability to operate the patio, or to offer entertainment, if those separate approvals haven't been dealt with on their own timeline. Some of these municipal approvals are also tied to specific conditions (hours, capacity, noise provisions) that a new owner needs to confirm still apply, or need to be reapplied for, under their own name.

Due diligence for a hospitality business sale should map out every licence and permit the business actually operates under, not just the liquor licence, and the purchase agreement's closing conditions should reflect all of them.