MD Franchise Legislation on Governor’s Desk

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Passing both legislative chambers and eligible for the Governor’s signature, Senate Bill 704 reduces, from 180 days to 45 days, the number of days that a brewery must wait after notifying a distributor of its intent to terminate or refuse to renew a beer franchise agreement before terminating the agreement, if the brewery produces 20,000 or fewer barrels of beer per year. Such a brewery is authorized to terminate or refuse to continue or renew a franchise agreement without good cause and is no longer required to give its franchisee an opportunity to correct a deficiency if that is the reason the agreement is being terminated. Before terminating a beer franchise agreement, a brewery must buy back all of its beer from the franchisee, as specified.

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