Md. Code, Alcoholic Beverages and Cannabis § 26-1618
This is the official text of Md. Code, Alcoholic Beverages and Cannabis § 26-1618, part of Maryland’s Code, Alcoholic Beverages and Cannabis — regulates the sale and licensing of alcohol and cannabis.
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§26–1618.
Official statutory text
(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.
(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.
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