Sec. 30-62e. Franchisor or landlord receipt of profits from alcoholic liquor sales.
289 words·~1 min read·
/ct/title-30/chapter-545-liquor-control-act/30-62e·A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
(a)Subject to the provisions of subsection
(b)of this section, a franchisor or landlord may, without obtaining approval as a backer, receive profits from the sale of alcoholic liquor from a franchisee or tenant that is permitted to sell alcoholic liquor under the provisions of this chapter, provided the franchisor or landlord does not:
(1)Control the operations of the permit premises;
(2)Direct sales of alcoholic liquor from the permit premises; or
(3)Otherwise engage in activities indicating ownership or proprietorship of the franchisee or tenant.
(b)The Department of Consumer Protection may require a franchisor or landlord to obtain approval as a backer in order for the franchisor or landlord to receive profits as set forth in subsection
(a)of this section. In determining whether to require a franchisor or landlord to receive such approval, the department shall:
(1)Consider the percentage of such profits that the franchisor or landlord receives; and
(2)Evaluate whether the franchisor or landlord may
(A)supervise, hire, retain or discharge persons employed on the permit premises,
(B)set menu selections or prices for the permit premises,
(C)establish hours or days of operation for the permit premises,
(D)decide whether or when a patio may be used in connection with the operations of the permit premises,
(E)order or accept alcoholic liquor deliveries for the permit premises,
(F)arrange advertising for the permit premises, including, but not limited to, advertising on the Internet or through social media,
(G)dictate decorations for the permit premises,
(H)access banking accounts related to the permit premises,
(I)incur debt on behalf of a backer for the permit, and
(J)enter into agreements with other entities on behalf of a backer for the permit.