Maryland Statutes
Part II - Multiple Licensing Plans
Section 26-1618 - Franchises

(a)    This section does not apply to a restaurant located in a chain store, supermarket, discount house, drug store, or convenience store.
    (b)    In accordance with the license quota limitations under § 26–1601 of this subtitle, the Board may issue or transfer a Class B beer (on–sale) license or Class B beer and wine (on–sale) license for use by:
        (1)    a franchisee who operates a restaurant under a franchise agreement with a franchisor; or
        (2)    a person who operates a restaurant under a business licensing agreement that:
            (i)    is made with a licensor; and
            (ii)    authorizes a person, in the operation of a restaurant, to use a trademark, trade name, or other identifying symbol owned by a licensor.
    (c)    The Board may issue or transfer a license under subsection (b) of this section regardless of whether a Class B beer (on–sale) license or Class B beer and wine (on–sale) license has been issued or transferred for use by:
        (1)    another franchisee operating a restaurant under a franchise agreement with the same franchisor; or
        (2)    another person operating a restaurant under a business licensing agreement with the same licensor.
    (d)    A licensor or franchisor:
        (1)    is prohibited from having an ownership interest in an entity that receives a Class B beer (on–sale) license or Class B beer and wine (on–sale) license under this section; but
        (2)    under a business licensing agreement or franchise agreement, may be paid a fee that is based on a percentage of revenue by a person that receives a Class B beer (on–sale) license or Class B beer and wine (on–sale) license.

Structure Maryland Statutes