BMI says you need a license. Your restaurant is tiny. You play the radio behind the counter. It feels wrong that a 900-square-foot sandwich shop should pay the same licensing fees as a concert hall. Congress agreed — and wrote an exemption into federal law for exactly this situation.
This page walks through the homestyle exemption under 17 USC 110(5)(B) with the specific numbers that apply to restaurants: square footage limits, speaker limits, and the other conditions you have to meet.
Last updated April 2026
The short answer
If your restaurant is under 2,000 square feet and you meet the speaker and source requirements, you are probably exempt. The homestyle exemption under 17 USC 110(5)(B) specifically covers food-service and drinking establishments under 2,000 gross square feet (excluding parking). If your restaurant is under that threshold and you are playing music from an over-the-air broadcast source with a limited number of speakers, you do not need a BMI license — or an ASCAP or SESAC license.
The exact requirements
To qualify for the homestyle exemption as a food-service or drinking establishment, your restaurant must meet all of the following conditions:
- Under 2,000 gross square feet (excluding space used only for customer parking). This is total floor area, not just dining room. It includes the kitchen, storage, restrooms, and hallways.
- Music source is a licensed broadcast: over-the-air radio, broadcast TV, or basic cable/satellite. Consumer streaming services (Spotify, Apple Music, Pandora, YouTube) do not qualify.
- No more than 6 loudspeakers total, with a maximum of 4 in any single room.
- No more than 4 TVs (55-inch diagonal maximum each), with a maximum of 1 TV per room.
- No cover charge to see or hear the performance.
- No retransmission of the signal beyond your premises.
If your restaurant is over 2,000 square feet, you do not automatically qualify for the business exemption under 110(5)(B). You would need to meet the equipment limits listed above to still qualify. Most restaurants over 2,000 sq ft will need PRO licenses or a commercial background music service.
What counts toward the square footage?
The statute says "gross square feet of space (excluding space used for customer parking and for no other purpose)." In practice, this means:
- Counts: dining area, bar area, kitchen, prep area, walk-in coolers, storage rooms, restrooms, hallways, host stand area, office space, employee break room
- Does not count: outdoor parking lot used exclusively for customer parking (not outdoor dining)
- Gray area: outdoor patios and dining areas — if customers can hear the music in these spaces, a PRO could argue they should be included
When in doubt, measure conservatively. If you are close to the 2,000 sq ft line, measure everything and keep documentation.
The math
If you qualify for the exemption: $0 per year in PRO licensing fees. You are legally covered by the statute.
If you do not qualify — PRO licenses: BMI alone is roughly $400–$800/year. All three PROs together: approximately $1,100–$2,200/year.
If you do not qualify — BGM service: A commercial background music service runs $200–$600/year and bundles all PRO licensing. Simpler than dealing with each PRO separately.
Risk of getting it wrong: $750–$150,000 per song in statutory damages (17 USC 504(c)). A typical PRO settlement demand is $3,000–$10,000.
What to do next
- Run the free self-check to confirm whether the homestyle exemption covers your restaurant. It will walk you through square footage, speakers, and music source step by step.
- Measure your space. Get the gross square footage from your lease agreement, building plans, or by measuring yourself. Keep a record.
- Count your speakers and TVs. Walk through every room. Note the count per room, not just the total.
- Document everything. If you are relying on the exemption, keep a written record of your square footage, speaker count, and music source. If a PRO ever challenges you, this is your evidence.
Run the full self-check
The free self-check tool applies the same statutory test described above to your specific restaurant. Answer 7 questions and get a clear answer.
Source text
17 USC 110(5)(B) — the business exemption (Fairness in Music Licensing Act):
"...a food service or drinking establishment (as defined in subparagraph (B) of section 101)... if— (I) the establishment in which the communication occurs has less than 3,750 gross square feet of space (excluding space used for customer parking and for no other purpose), or (II) the establishment in which the communication occurs has 3,750 gross square feet of space or more..."
For food-service and drinking establishments under subparagraph (B), the threshold that matters is 2,000 gross square feet. Establishments under this size are exempt if the other conditions (broadcast source, speaker limits, no cover charge, no retransmission) are met. Establishments between 2,000 and 3,750 sq ft must also satisfy the equipment limits in subclause (II).
Full statute: 17 USC 110 at Cornell LII