Have you ever wondered what the penalty might be if a alcohol beverage manufacturer lost a court case against a wholesaler in a franchise dispute? It doesn’t happen often that franchise disputes go before a jury, but in Missouri court case, the cost was high. Jägermeister was been found guilty of violating a contract with their distributor Major Brands Inc, with a jury awarding nearly $12 million in damages to Major Brands.
Jägermeister was found guilty of violating the state’s Franchise Act, which states that alcohol producers have to produce a reason to end relationships with their distributors. It is the latest challenge to franchise laws as alcohol beverage manufacturers push back against the archaic and one-sided advantage that wholesalers have over their suppliers.
Details on the Jägermeister case here.