Franchise Markets can be extremely complicated and differ from open and control states (which I will cover in an additional blog post). The following states across the USA are all considered Franchise which Propel specializes in:

Alabama, Arkansas, Connecticut, Delaware, Georgia, Idaho, Kansas, Maine, Massachusetts, Michigan, Missouri, Montana, Nevada, New Jersey, New Mexico, North Carolina, Ohio, Tennessee, Vermont, Virginia, Washington and Wisconsin (according to the Wine Institute).

The definition of a franchise state according to winebusiness.com is Any state where a distributor can use state law (sometimes called a “franchise act,” sometimes called something else) to shield itself from the consequences of its own actions is considered to be a franchise state. Distribution agreements between suppliers and wholesalers are contractual relationships. 

This definition is vague so I will lay out guidelines to follow when appointing a franchise distributor, specifically in our markets of MA and CT.

Most importantly choose your distributor wisely:

• This is very important because once a brand is appointed to a distributor it is incredibly challenging to take the brand away. Once a brand is appointed you have a 6-month window of releasing the product and choosing a new distributor. 
• If you are fortunate enough to pull the brand within a 6-month period, you will have to wait an additional 6 months before your new distributor can start selling your item
  • In short, to change distributors you will have wasted a year of sales prior to having a successful launch
• If you don’t pull the product prior to the 6 month period the only reasons you can pull your product are
  • The distributor loses their license
  • The distributor is unable to pay for the product
  • A distributor change of control
  • Blatant nonperformance which is difficult to prove
• 99% of the time you will be forced to stay with the distributor you initially have chosen. Most likely you will not be able to pull your product and only be able to add another distributor which is called a duel product in market

We can help you navigate this complicated process to find the distributor who is the right fit for your product.