Beer Distribution Laws differ from traditional
franchise laws that govern restaurant, retail and service
businesses in many ways, but they do share some commonalities.
As a matter of fact, many states now regulate
the relationship between those who brew or import beer
into a particular state, known as brewers, and those who
receive beer, warehouse beer and distribute beer to retailers,
known as distributors, by way of special relationship
statutes that have been patterned after, and closely resemble,
the relationship statutes many states have passed to
protect franchisees in traditional franchise relationships.
While beer distributorship arrangements
are distinctly different from traditional
franchise arrangements, it is clear there are certain
commonalities. Modern beer laws
governing beer distribution relationships between
brewers and distributors have been patterned after
franchise relationships laws. After all, brewers resemble
franchisors in that they tend to hold a lion’s
share of the power in the beer distribution business
relationship. Accordingly, we can expect more and
more states to pass relationship laws aimed at further
balancing power in favor of distributors, as we
continue to see in franchising, and to require good
faith dealings between the parties in each of these
contractual arrangements.
Please see full publication below for more information.