DECISION
An informational hearing was held to determine whether the applicant Leonard Wood d.b.a. L’il Peach #417 a franchise business agreement with TFS franchise comported with Ch.138 §15. The issue raised by the franchise agreement between the parties was whether by execution and performance of said agreement there was a creation of a direct or indirect interest of more than three (3) licenses in the Commonwealth of Massachusetts, which would be prohibitive by Ch.138 §15.
The applicant submitted Exhibit A, a franchise agreement between the parties. Section 6.2 Sales Royalty of the agreement requires that the franchisees pay the franchisor a weekly net sales royalty of all-sales including, alcohol sales between 10-20 %. However in compliance with the Commissions past decisions of 7 Eleven _____and _____ the applicant has submitted an executed copy of the Massachusetts Alcoholic Beverage Amendment hereinafter the Massachusetts Amendment (Exhibit B). The Massachusetts Amendment specifically addresses the concerns as outlined in 7 Eleven decision by prohibiting the franchisor from sharing in alcohol sales, sharing in control/management of the alcohol licensee and control of the licensed premise. Wherefore the Commission finds that said franchise agreement and Massachusetts Amendment of L’il Peach # is not offensive to the statutory prohibitions of M.G.L. Ch.138 §15 and is consistent with the 7 Eleven-franchise agreements as previously approved by this Commission, herein approves said Franchise Agreement with the Massachusetts Amendment.
Alcoholic Beverages Control Commission
Eddie J. Jenkins, Chairman__________________________________________________
Robert H. Cronin, Commissioner_____________________________________________
Dated in Boston, Massachusetts this 26th day of July 2006.
You have the right to appeal this decision to the Superior Court under the provisions of Chapter 30A of the Massachusetts General Laws within thirty days of receipt of this decision.
EJJ/ kac