Comparing Franchise Relationships and Beer Distribution Relationships

Lewitt Hackman
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Beer distribution laws differ from traditional franchise laws 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 some states have passed to protect franchisees in traditional franchise relationships.

The Franchise Relationship -

A franchise is a business relationship in which (1) the franchisee’s business will be substantially associated with the franchisor’s trademark; (2) the franchisee pays the franchisor a fee to engage in the business and utilize its trademark; and (3) the franchisee will operate the business under a marketing plan or system substantially prescribed by the franchisor.

Originally Published in Orange County Lawyer - November 2014.

Please see full publication below for more information.

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DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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