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 jurisdictions.




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