INDUSTRY FRANCHISE LAWS
The alcoholic beverage industry is composed
of three tiers. Many states have enacted special legislation
that protects the local distributor of alcoholic beverage products
(ie, second tier) from being terminated as the brand distributor
by the immediate supplier (ie., first tier). Generally, when
the supplier desires to terminate its local distributor it
must do so in accordance with its contract, which may be written
or oral. State laws have imposed a requirement that the supplier
must establish “good cause” prior to any termination.
These laws supercede any contractual provisions governing termination.
In addition, many of these laws impose requirements on successors
to the immediate supplier of the brand.
Buchman Law Firm, LLP offers a comprehensive evaluation
of the various state laws governing spirits, wine and malt
beverages special franchises as well as, where appropriate,
the general franchise statutes that may prevail in a particular
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