1. (a) This section does not apply to a restaurant located in a chain store, supermarket, discount house, drug store, or convenience store.

2. (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. (1) a franchisee who operates a restaurant under a franchise agreement with a franchisor; or

   2. (2) a person who operates a restaurant under a business licensing agreement that:

      1. (i) is made with a licensor; and
      2. (ii) authorizes a person, in the operation of a restaurant, to use a trademark, trade name, or other identifying symbol owned by a licensor.

3. (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. (1) another franchisee operating a restaurant under a franchise agreement with the same franchisor; or
   2. (2) another person operating a restaurant under a business licensing agreement with the same licensor.

4. (d) A licensor or franchisor:

   1. (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. (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.

Added by Acts 2016, c. 41, § 2, eff. July 1, 2016.