Franchise Bill Intro’d in PA

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S.B 623 provides for a required renegotiation of a supplier-distributor franchise agreement prior to the fifth anniversary of said agreement and non-good cause termination with sixty days’ notice as long as the termination does not cause irrevocable loss (defined as the loss of volume of such brand or brands accounting for more than ten percent of the entire liquid volume of malt or brewed beverages or gross sales amount distributed by the importing distributor in the twelve months preceding the written notice, whichever is less) and the supplier pays to the distributor an agreed to fair market value of the distributor’s business with respect to the terminated or rescinded brand or brands.

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