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Sherman, TX Business Licensing & Operations: Adult Entertainment (2026)

Heavy Restrictions
Compiled from the official code textEditor Martyn O'NeillLast verified October 2026

Key Facts

Business license fee
$250.00 initial, $125.00 renewal (§ 4.02.006)
Employee license fee
$100.00 initial, $50.00 renewal
Allowed districts
C-2 and M-1 only
Buffer from protected uses
1,500 feet from churches, schools, parks and similar
Buffer between such businesses
1,500 feet from another sexually oriented business
Closed hours
12:00 a.m. to 8:00 a.m. Monday to Saturday; to noon Sunday
Civil fine
$1,000.00 per day without a license or in a barred location

Summary

In the City of Sherman, Texas, a sexually oriented business needs a city license, and every employee needs a separate employee license. The business can operate only in the C-2 and M-1 districts and must sit at least 1,500 feet from churches, schools, residential districts, parks, other such businesses and alcohol-licensed premises.

(a) A person commits a class C criminal misdemeanor if that person operates or causes to be operated a sexually oriented business in any zoning district other than C-2 and M-1, as defined and described in the city zoning code. (b) A person commits a class C criminal misdemeanor offense if the person operates or causes to be operated a sexually oriented business within 1,500 feet of: (1) A church, synagogue, mosque, temple, or building which is used primarily for religious worship and related religious activities; ... (3) A boundary of a residential district as defined in the city zoning code; ... (7) Any premises licensed pursuant to the alcoholic beverage control regulations of the state. (c) A person commits a class C criminal misdemeanor if that person causes or permits the operation, establishment, substantial enlargement, or transfer of ownership or control of a sexually oriented business within 1,500 feet of another sexually oriented business.

Full Breakdown

Article 4.02 of the Sherman Code of Ordinances, adopted by the City Council in 2003, covers adult arcades, bookstores and novelty stores, cabarets, motels, motion picture theaters, theaters, escort agencies, seminude modeling studios and sexual encounter centers. Under § 4.02.004 it is unlawful to run one without a valid license, to employ anyone who lacks an employee license, or to take a job without one. A general business license does not substitute. The notarized application goes to the enforcement officer, who is the city zoning administrator or a person the council designates, and it must include a sketch of the premises drawn to within six inches.

Under § 4.02.005 the officer issues a temporary license on filing and must either grant the license or send a written notice of intent to deny within twenty days. Denial grounds include an applicant under eighteen, unpaid city fees, a false answer, a conviction for a specified criminal activity, or a location outside the permitted zoning. Under § 4.02.006 the business license costs $250.00 initially and $125.00 to renew, and the employee license costs $100.00 initially and $50.00 to renew. Licenses run one year under § 4.02.008 and renewal applications are due at least thirty days before expiry.

Location is governed by § 4.02.013: only C-2 and M-1 districts qualify, a 1,500 foot buffer applies to the listed protected uses and to other sexually oriented businesses, and further areas are closed, including land within 500 feet of U.S. Highways 75 and 82, the central business district, the historical district and Blalock Industrial Park. Distances run in a straight line from the nearest part of the business building to the nearest property line of the protected use. Businesses that predate the rule and fail the location test were allowed one year as a nonconforming use.

Section 4.02.018 bars operation from 12:00 a.m. to 8:00 a.m. on weekdays and Saturdays and from 12:00 a.m. to noon on Sundays, except for adult motels.

Violations & Fines

Under § 4.02.020 operating without a valid license, or in violation of the § 4.02.013 location rules, exposes the operator to a suit for a restraining order or injunction and to prosecution for a class C misdemeanor, with the fine set by the general penalty provision in § 1.01.009 and each day counting as a separate offense. The city can also seek a civil fine of $1,000.00 per day. Under § 4.02.009 a license can be suspended for up to thirty days for any violation of the article or for refusing an inspection, and under § 4.02.010 a second cause within twelve months, or knowingly allowing prostitution or controlled substances on site, starts revocation. A revoked licensee is shut out for one year.

Frequently Asked Questions

Do I need a license to work at a sexually oriented business in the City of Sherman, Texas?
Yes. Section 4.02.004 makes it unlawful to take a job with a sexually oriented business without first holding an employee license, and it is equally unlawful for the operator to employ an unlicensed person. The employee license costs $100.00 initially and $50.00 to renew, carries a photograph, and must be kept on the worker or on the premises for inspection by police.
How long does Sherman take to decide a license application?
The enforcement officer issues a temporary license when a completed application is filed. Within twenty days of receiving it, the officer must issue the license or send a written notice of intent to deny. A denial can be answered in writing within five working days, and the city manager then holds a hearing within ten working days of that response.
Can I appeal a denial, suspension or revocation?
Yes, but the route is court. After the city manager's hearing and a final decision, § 4.02.011 gives the applicant or licensee an immediate right to appeal to a court of competent jurisdiction. Until the court issues its final judgment, the denial, suspension or revocation stays in force and the city enforces it.
What happens to a business that was open before the location rules took effect?
Under § 4.02.013(h), a lawfully operating business that violates the location rules is a nonconforming use for no more than one year, and it ends sooner if discontinued for thirty days or more. It cannot be enlarged or altered except to become conforming. Where two sit within 1,500 feet of each other, the first established is the conforming one.
Are there rules for private viewing booths?
Yes. Section 4.02.014 applies to viewing rooms under 150 square feet. Each needs a manager's station of no more than 32 square feet with a licensed employee posted whenever a patron is present, an unobstructed view of every patron area, no more than one person per room, no openings between booths, and lighting of at least 5.0 footcandles at floor level.

Sources & Official References

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