Franchise Bill Intro’d in Maryland

Senate Bill 704 seeks to add a statutory provision allowing a “small franchisor” (a beer manufacturer that produces 300,000 barrels or less annually and accounts for 10% or less of a “franchisee’s” (i.e. distributor’s) total annual sales volume) to terminate a franchise agreement with 15 days written notice. The bill also requires distributors provide written notice 1) to a small franchisor of the percentage of the total annual sales volume that the small franchisor accounts for in comparison to all other franchisors that the distributor is in agreement with at that time and 2) if a change in the percentage of total annual sales volume triggers a change in status of either a small franchisor or a large franchisor. Finally, the bill provides that, before termination of a beer franchise agreement, a small franchisor shall buy back at fair market value all the beer that the distributor purchased from the small franchisor and retains in inventory.

Links

  1. Senate Bill 704

Pete Johnson serves as the State & Regulatory Affairs Manager for the Brewers Association. He joined the BA at its inception in 2005, having previously worked as Programs Director for the Brewers Association of America. Before coming to the small brewing industry in 2001, Pete worked for 14 years with both state and federal elected officials in Pennsylvania and Washington, D.C.

See Pete Johnson's recent articles and activities