§ 5–101
Statutes in effect as of October 1, 2026.
Md. Code Ann., Alco. Bev. § 5-101 (2026)
Title 5. General Beer Regulation
Subtitle 1. Beer Franchise Fair Dealing Act
§ 5–101LinkCopy Citation
(a)
In this subtitle the following words have the meanings indicated.
(b)
“Beer distributor” means a person that imports or causes to be imported into the State, or purchases or causes to be purchased in the State, beer for sale or resale to a retail dealer licensed under this article without regard to whether the business of the person is conducted under a beer franchise agreement or another form of agreement with a beer manufacturer.
(c)
“Beer franchise agreement” means:
(1)
a commercial relationship between a beer distributor and beer manufacturer that:
(i)
is of a definite or indefinite duration; and
(ii)
is not required to be in writing;
(2)
a relationship in which a beer manufacturer grants a beer distributor the right to offer and sell the brands of beer offered by the beer manufacturer;
(3)
a relationship in which a beer distributor, as an independent business, constitutes a component of a beer manufacturer’s distribution system;
(4)
a relationship in which a beer distributor’s business is substantially associated with a beer manufacturer’s brand, advertising, or another commercial symbol that designates the beer manufacturer;
(5)
a relationship in which a beer distributor’s business relies substantially on a beer manufacturer for the continued supply of beer; or
(6)
a written or oral arrangement of definite or indefinite duration in which:
(i)
a beer manufacturer grants to a beer distributor the right to use a trade name, trademark, service mark, or related characteristic; and
(ii)
there is a community of interest in the marketing of goods or services at wholesale or retail, by lease, or by another method.
(d)
“Beer manufacturer” means:
(1)
a brewer, fermenter, processor, bottler, or packager of beer located in or outside the State; or
(2)
a person located in or outside the State that enters into a beer franchise agreement with a beer distributor doing business in the State.
(e)
“Fair market value” means the price at which an asset would change hands between a willing seller and a willing buyer when:
(1)
neither is acting under any compulsion; and
(2)
both have knowledge of all of the relevant facts.
(f)
“Franchisee” means:
(1)
a beer distributor to whom a beer franchise agreement is granted or offered; or
(2)
a beer distributor that is a party to a beer franchise agreement.
(g)
“Franchisor” means a beer manufacturer that:
(1)
enters into a beer franchise agreement with a beer distributor; or
(2)
is a party to a beer franchise agreement.
(h)
“Sales territory” means the area of sales responsibility designated by a beer franchise agreement for the brand or brands of beer of a beer manufacturer.