(a)This section shall only apply to a franchise in which
the franchisor annually produces twenty-five thousand (25,000)
barrels of malt beverages in aggregate or less, including the
production of malt beverages by any affiliate. For purposes of
this section, malt beverages produced for a franchisor under a
brand owned or controlled by the franchisor shall be attributed
to the franchisor and not to the brewer producing the malt
beverages for the franchisor.
(b)Notwithstanding any agreement or other provision of
law, a franchise governed by this section may be terminated, not
renewed, canceled or discontinued by the franchisor for any
reason or no reason upon not less than forty-five (45) days
written notice of the effective date of the termination,
cancellation, nonrenewal or discontinuan
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(a) This section shall only apply to a franchise in which
the franchisor annually produces twenty-five thousand (25,000)
barrels of malt beverages in aggregate or less, including the
production of malt beverages by any affiliate. For purposes of
this section, malt beverages produced for a franchisor under a
brand owned or controlled by the franchisor shall be attributed
to the franchisor and not to the brewer producing the malt
beverages for the franchisor.
(b) Notwithstanding any agreement or other provision of
law, a franchise governed by this section may be terminated, not
renewed, canceled or discontinued by the franchisor for any
reason or no reason upon not less than forty-five (45) days
written notice of the effective date of the termination,
cancellation, nonrenewal or discontinuance of the franchise.
Upon the effective date of any termination, cancellation,
nonrenewal or discontinuance by a franchisor under this section,
the franchisee shall be entitled to the following compensation:
(i) The fair market value, as defined in W.S. 12-9-
115(c), of the terminated, cancelled, not renewed or
discontinued franchise; and
(ii) The repurchase of all the franchisor's
merchantable product at an amount equal to the laid-in cost of
the franchisee's inventory of the franchisor's products that are
in the franchisee's warehouse or in transit to the franchisee.
Unmerchantable products shall be disposed of in accordance with
the preexisting agreement of the parties or, if no agreement
exists, shall be disposed of with the franchisor and franchisee
sharing equally in the costs of disposal.
(c) If the franchisor and franchisee have not agreed to
the reasonable compensation as provided under subsection (b) of
this section upon the effective date of the termination,
cancellation, nonrenewal or discontinuance of the franchise,
then on or before the termination date the franchisor shall pay
the franchisee a good faith estimate of compensation due under
this section, including a good faith estimate of fair market
value. The franchisee shall make merchantable inventory
available for pickup by the franchisor or its designee.
(d) If the franchisee believes that the payment made by
the franchisor under subsection (c) of this section was less
than the compensation due under subsection (b) or (e) of this
section or if no payment is made, the franchisee may, within
forty-five (45) days of the effective date of the termination,
cancellation, nonrenewal or discontinuance of the franchise,
submit the question of compensation due to final and binding
arbitration in accordance with the following:
(i) The manner of arbitration under this section
shall be the manner agreed upon by the parties or, in the
absence of an agreement, the arbitration shall proceed before a
panel of three (3) arbitrators selected in accordance with the
commercial rules of the American Arbitration Association;
(ii) If the arbitration concludes that the payment
made by the franchisor to the franchisee upon termination was
less than the compensation due under subsection (b) of this
section, the franchisor shall pay the franchisee any additional
amount of determined compensation, plus interest. If the
arbitration concludes that the payment made by the franchisor to
the franchisee upon termination was more than the compensation
due by reason of the termination, the franchisee shall repay any
determined overpayment to the franchisor, plus interest;
(iii) All arbitration fees and expenses shall be
equally divided among the parties to the arbitration unless the
arbitration determines that the franchisor's payment under
subsection (c) of this section was not a good faith estimate of
the compensation due in which event the arbitration may award up
to one hundred percent (100%) of the arbitration costs to the
franchisee;
(iv) The arbitration shall be final and binding and
shall fully resolve the issue of compensation due to the
franchisee from the franchisor under this section.
(e) Notwithstanding any other provision of this section,
by written mutual agreement, regardless of whether the agreement
existed before or after the termination, cancelation, nonrenewal
or discontinuance of a franchise under this section, the
franchisor and the franchisee may establish a method or formula
for compensating a franchisee under this section.
(f) This section shall be effective on July 1, 2024. This
section shall apply to:
(i) All franchise agreements entered on or after July
1, 2024;
(ii) Any franchise in existence on July 1, 2024 upon
the amendment or renewal of the franchise. For purposes of this
paragraph, if a franchise has an indefinite duration or has a
duration of one (1) year or more after July 1, 2024 the
franchise shall be deemed to be renewed on July 1, 2025.