Missouri Liquor Franchise Bill Stalls in Senate
Missouri’s alcohol franchise bill, currently stalled in the Missouri Senate, would reinstate protections for local distributors that were placed in serious jeopardy after a 2011 court case redefined the meaning of the term “franchise” in Missouri. The change essentially abolished competition protections that local distributors in Missouri have enjoyed since the 1970s.
The controversial law would require suppliers to have “good cause” to terminate a contract with a distributor. Proponents of the bill say that the legislation is necessary to protect home state interests from out of state competitors and ensure a competitive marketplace for local brands. Opponents maintain that the bill is anti-competitive and gives Missouri distributors monopoly protection.
California Bill to Protect Franchise Buyers Gains Ground
A California bill, recently passed in the state Senate, would enhance protections for franchisees if it becomes law. The law would impose a “good faith” requirement for dealings between franchisors and franchisees and would allow franchisees to sue franchisors who don’t negotiate offers to sell, renew, transfer, or terminate a franchise in good faith. The proposed law would also allow franchisees to band together in associations.
The American Association of Franchisees strongly supports the bill, arguing that it is necessary to level the playing field between franchisors and franchisees. The International Franchise Association opposes the bill.
Having passed in the California Senate, the bill is now on its way to the state Assembly for amendments. You can read the bill at here.