Franchise Legislation Passes MA Senate

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Passing the Senate, S.B. 2829 allows a brewery with less than 250,000 barrels annual production to terminate a wholesaler in the absence of good cause with thirty days’ written notice of termination. The terminated wholesaler, as sole and exclusive compensation for termination of the right to distribute the brands of the brewery, shall be paid an amount equal to the laid-in cost of the merchantable inventory and the laid-in cost of the current sales and marketing material, plus the fair market value of the distribution rights for the brands that are being terminated by the brewery. If fair market value cannot be agreed upon, binding arbitration would be invoked to make that determination.

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