New rules are being drawn up after a rise in the number of city sex shops.
Guidelines were last reviewed in Brighton and Hove two years ago when there was just one such outlet near Brighton station.
Since then permission has been given for two others in Brighton and another in Hove.
Councils such as Brighton and Hove can establish local rules for premises selling sex aids, restricted videos and DVDs and cinemas screening sexual activity.
Officials say new rules would control the inappropriate spread of sex establishments and ensure any permitted ones were well managed.
Licensing councillor Don Turner said: "We're trying to strike a balance.
"People have a right to visit properly-managed sex establishments. At the same time residents have a right to enjoy their homes and neighbourhoods.
"These guidelines will ensure we only grant licences for premises in the right place, run by the right people."
The policy would prevent licences being granted to people with criminal convictions. Sex establishments would be barred from locations near schools, churches and crime hot spots.
Licences would not normally be granted in residential streets or historic areas, to avoid changing their character. Premises must close by 8pm and not reopen before 9am.
Internet and mail order business are exempt.
Councillors will look at the guidelines at the policy committee on January 21.
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