Maryland Considers Reforming Beer Franchise Laws

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After several years of political firestorms between reform-minded state Comptroller Peter Franchot and the state lawmakers, a key legislative committee in Maryland’s legislature has signaled a willingness to reform and loosen the state’s strict franchise laws that govern the contracts between brewers and wholesalers. According to Brewbound:

Franchise law reform is closer to reality in Maryland without the help of Maryland Comptroller Peter Franchot. The Senate Education, Health and Environmental Affairs Committee voted unanimously last week to loosen the state’s franchise laws that lock brewers into contracts with their wholesalers, according to The Daily Record.

Under the proposed changes, beer companies making fewer than 30,000 barrels annually would be allowed to exit their existing distribution agreements by giving 45 days notice and paying fair market value. Brewers making 12,500 barrels or less would be required to pay fair market value for the product remaining in a wholesaler’s warehouse, while companies making between 12,500 and 30,000 barrels would be required to pay the fee as well as the wholesaler’s marketing costs.

Currently, brewers are required to give 180-days notice and show “good cause.”…

Read more here.