MA Franchise Bill Emerges from Committee

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Reported from committee, House Bill 327 seeks to allow small brewers (defined as under 6 million barrels) to terminate a distributor without cause and with less than the current 120-day notice (the notice provision is tiered based on sales: 30 days for brewers selling 5,000 barrels or less, 45 days for brewers selling between 5,001 and 350,000 barrels, and 60 days for brewers selling between 350,001 and 6 million barrels) for fair market value as determined by the terminated distributor and successor distributor. If those two parties fail to agree, the determination is made through binding arbitration, with the successor distributor compensating the terminated distributor.