Massachusetts Gov. Charlie Baker has signed the franchise reform bill into law, finally ending a two-decades-long debate between the state’s craft breweries and wholesalers.
The new law goes into effect immediately.
Under the new law — “An Act Relative to Craft Brewers” (S. 2841) — breweries that produce fewer than 250,000 barrels (3,445,000 cases) of beer over a 12-month period would be allowed to terminate their wholesaler contracts at any time by giving 30 days’ notice and paying “fair market value” for their brand rights. The legislation would include around 200 craft breweries in the Bay State, with Boston Beer Company being a notable exception.
“The Beer Distributors of Massachusetts expresses its deep appreciation to Gov. Baker, Lt. Gov. [Karyn] Polito, House Speaker [Ronald] Mariano and Senate President [Karen]Spilka for their support of this important pro-consumer and pro-business measure,” Beer Distributors of Massachusetts president William Kelley said in a press release. “This law reflects an agreement reached with the Massachusetts Brewers Guild (MBG) and will facilitate further growth and promote the health of the beer industry across the United States. We are extremely grateful to the leadership of the Massachusetts Brewers Guild and everyone involved in the persistent effort to reach this agreement.”
Massachusetts’ previous franchise laws locked breweries into contracts with their wholesalers after six months of working together, unless the brewery can show cause for termination.
Read more about the law change and the Massachusetts Brewers Guild’s future priorities here.