# Distributor franchise

A term used when buying brewery.

In some states, a brewery's tie to its distributor, which it cannot end without cause or a statutory price.

Taproom share warns of a distributor agreement the brewery may not be able to end. In Ohio the reason is a franchise act covering any contract or other legal device between brewer and distributor, and ninety days of distributing without a written contract creates one. Without the distributor's consent, no brewer may cancel or refuse to renew except for just cause and on sixty days' written notice. Handing a brand to an affiliate the brewer controls is not just cause. A successor that acquires all or substantially all of the brewery's stock or assets gets one opening: ninety days to end a distributor's franchise for the acquired brand. It must then buy back that distributor's inventory at laid-in cost and pay the diminished value of its business, [goodwill](https://searchspheresource.com/glossary/goodwill) included, before the territory can go to anyone else. Miss the window and the franchise binds the buyer. Washington leaves breweries under two hundred thousand barrels a year outside its act altogether. Map every distributor to its state before pricing any change of channel.

Part of: Buying a Brewery (https://searchspheresource.com/guides/buying-a-brewery)

Source: https://searchspheresource.com/guides/buying-a-brewery/terms/distributor-franchise
Not dated: The same editorial definitions as the glossary, inside a trade.

Site index for machines: https://searchspheresource.com/llms.txt