Opening a Convenience Store in Tennessee: Licenses & Permits

In Tennessee, store size and food sales decide whether you can sell wine. The TABC wine license requires at least 1,200 sq ft of retail floor space and 20% of taxable sales from food, so a small store may be limited to beer. Beer itself is licensed locally, by city and county beer boards. Below is who issues what, and how each rule shapes the store you design.

Licenses and permits at a glance

Fuel tanks: TDEC

The Tennessee Department of Environment and Conservation's Division of Underground Storage Tanks regulates tanks:

• Pre-installation notice: form CN-1288 must reach the division 15 days before installation. Tanks are listed as temporarily out of service until the full notification form (CN-1260) is received.
• Operators: Class A, B and C operators are required. The owner names Class A and B operators in TDEC's Tennessee Tank Helper system and re-designates them within 30 days of a change. Training is free online, through a one-day tank school or by ICC exam.
• Releases: report suspected releases within 72 hours.
• Cleanup fund: the Tennessee Petroleum UST Fund is the financial responsibility mechanism for registered tanks. For releases on or after April 9, 2026, the maximum deductible is $5,000.
• Air and stormwater: gas stations file a permit-by-rule notice of intent 7 days before construction, with no fee. Stage I vapor recovery is required at 100,000 or more gallons a month (10,000 in certain counties). Sites of one acre or more need a stormwater construction permit 30 days ahead.

Beer: the local beer board

Beer permits for off-premises sales come from the city or county beer board (TCA 57-5-104). The application fee is $250, plus a $100 annual privilege tax. "Beer" means up to 8% alcohol by weight.

Cities and some counties set their own distance rules from churches, schools and similar places (TCA 57-5-106), so they vary from place to place. A site keeps its protection from later distance rules unless beer goes unsold there for six continuous months.

Wine: the TABC retail food store license

Wine needs a retail food store wine license from the Tennessee Alcoholic Beverage Commission, and only where the local jurisdiction has approved wine in retail food stores by referendum. According to TABC:

• Size and sales: at least 1,200 sq ft of retail floor space, and at least 20% of taxable sales from food.
• Local certificate: the city or county issues a certificate, which includes a felony check and zoning. If it doesn't act within 60 days, the certificate is treated as granted.
• Fees: $400 to apply and $1,250 for the license.
• Staff: you must join the Responsible Vendor Program and have a TABC-permitted designated manager. Clerks must be certified within 61 days of hire.
• Sales rules: wine is capped at 18% alcohol and must be marked up at least 20%. Hours are 8 a.m. to 11 p.m. Monday to Saturday and 10 a.m. to 11 p.m. Sunday, with no sales on Thanksgiving, Christmas or Easter.

No spirits. Spirits are sold only under a TABC retail package store license, and package stores are limited to alcohol and a short list of related items.

Hemp: since January 1, 2026, gas stations can't get TABC hemp-derived cannabinoid retail licenses.

Tobacco and vapor

Tennessee has no state retail tobacco or vapor license. Retailers register for sales tax. Vapor rules have tightened:

• Distributors: since August 1, 2025, retailers may buy vapor products only from licensed distributors.
• Directory: the state's vapor product directory was published January 1, 2026. From January 1, 2027, vapor products that aren't on it can't be sold at retail.
• Enforcement: since May 22, 2026, TABC fines sales to anyone under 21.

Food service: the Department of Agriculture

The Tennessee Department of Agriculture regulates retail food stores, including convenience stores and the food service inside them. The Department of Health covers standalone restaurants. TDA's plan review questionnaire asks for:

• a floor plan showing the three-compartment sink, hand sinks, mop sink and restrooms;
• a certificate of occupancy for a new store or renovation.

More than 16 seats requires two restrooms. Stores that handle temperature-controlled food are inspected twice a year.

Sales tax, fuel pumps and lottery

• Sales tax: register on TNTAP. There's no fee, and the certificate of registration must be displayed in the store. Business tax registration is separate.
• Fuel pumps: the Department of Agriculture's Weights and Measures certifies pumps each fiscal year (July 1 to June 30) and takes at least one fuel sample per station a year. Inspectors pull pumps that have skimmers and call police.
• Lottery: the Tennessee Education Lottery runs credit and background checks, requires good standing with the Department of Revenue and a separate bank account, and asks for a notarized contract.

What this means for your store design

• Design at least 1,200 sq ft of retail floor if you want wine. Below that, the store can sell beer only. Build the food program to keep food at 20% or more of taxable sales. See convenience store sizes.
• Add a second restroom for more than 16 seats. Plan seating with the restroom count in mind.
• Show every sink on the plan. The TDA questionnaire looks for the three-compartment, hand and mop sinks. See food service build-outs.
• Check local beer distance rules before you buy. They vary by city and county.
• Plan vape fixtures for a shorter list. Unlisted products leave the shelves on January 1, 2027.

Local approvals

Your city or county also controls zoning, building permits, fire inspections, signs and the beer permit. Our construction checklist covers the local steps.

For Tennessee store design, see convenience store design in Tennessee and walk-in cooler services in Tennessee.

Sources

• Tennessee Department of Environment and Conservation, UST installation notification, operator training, fund eligibility and new gas station facility guidance.
• Tennessee ABC, retail food store wine license and FAQs.
• University of Tennessee MTAS, Beer and Alcohol Guide 2026 (TCA 57-5).
• Tennessee Department of Revenue, tobacco notices 25-06 and 26-13, and business registration.
• Tennessee Department of Agriculture, retail food establishments and fuel quality.
• Tennessee Education Lottery, retailer FAQs.

This page summarizes official sources as of October 2026. It is not legal advice. Fees and rules change, so confirm each one with the agency before you apply.