{"formats":[{"name":"JSON","format":"json","url":"\/downloads\/2025\/code-json\/4.1-505.json"},{"name":"Plain Text","format":"text","url":"\/downloads\/2025\/code-text\/4.1-505.txt"},{"name":"XML","format":"xml","url":"\/downloads\/2025\/code-xml\/4.1-505.xml"},{"name":"HTML","format":"html","url":"\/downloads\/2025\/code-html\/4.1-505.html"}],"law_id":64225,"edition_id":1,"section_id":64225,"structure_id":13131,"section_number":"4.1-505","catch_line":"Cancellation","history":"1978, c. 579, \u00a7 4-118.7; 1985, c. 549; 1987, c. 247; 1989, c. 272; 1993, c. 866; 1996, c. 3.","full_text":"Notwithstanding the terms, provisions or conditions of any agreement, no brewery shall unilaterally amend, cancel, terminate or refuse to continue to renew any agreement, or unilaterally cause a wholesaler to resign from an agreement, unless the brewery has first complied with \u00a7 4.1-506 and good cause exists for amendment, termination, cancellation, nonrenewal, noncontinuation or causing a resignation. Good cause shall not include the sale or purchase of a brewery. Good cause shall include, but is not limited to, the following:\n\n1\n\nRevocation of the wholesaler’s license to do business in the Commonwealth;2\n\nBankruptcy or receivership of the wholesaler;3\n\nAssignment for the benefit of creditors or similar disposition of the assets of the wholesaler other than the creation of a security interest in the assets of a wholesaler for the purpose of securing financing in the ordinary course of business; or4\n\nFailure by the wholesaler to substantially comply, without reasonable excuse or justification, with any reasonable and material requirement imposed upon him in writing by the brewery, including, but not limited to, a substantial failure by a beer wholesaler to (i) maintain a sales volume of his brewery’s brand or brands, (ii) render services comparable in quality, quantity or volume to the sales volumes maintained and services rendered by other wholesalers of the same brand or brands within the Commonwealth, or (iii) failure to obtain the consent of the brewery to a transfer of a wholesaler’s business unless a determination has been made by the Board pursuant to § 4.1-507 that such consent was unreasonably withheld by the brewery. In any determination as to whether a wholesaler has failed to substantially comply, without reasonable excuse or justification, with any reasonable and material requirement imposed upon him by the brewery, consideration shall be given to the relative size, population, geographical location, number of retail outlets and demand for the products applicable to the territory of the wholesaler in question and to comparable territories.\n\t\t\tGood cause shall not be construed to exist without a finding of a material deficiency for which the wholesaler is responsible in any case in which good cause is alleged to exist based on circumstances not specifically set forth in subdivisions 1 through 4 of this section.","order_by":null,"text":{"0":{"id":233820,"text":"Notwithstanding the terms, provisions or conditions of any agreement, no brewery shall unilaterally amend, cancel, terminate or refuse to continue to renew any agreement, or unilaterally cause a wholesaler to resign from an agreement, unless the brewery has first complied with \u00a7 4.1-506 and good cause exists for amendment, termination, cancellation, nonrenewal, noncontinuation or causing a resignation. Good cause shall not include the sale or purchase of a brewery. Good cause shall include, but is not limited to, the following:","type":"section","prefixes":[""],"prefix":"","entire_prefix":"","prefix_anchor":"","level":1,"next_prefix":"1"},"1":{"id":233821,"text":"Revocation of the wholesaler’s license to do business in the Commonwealth;","type":"section","prefixes":["1"],"prefix":"1","entire_prefix":"1","prefix_anchor":"1","level":1,"prior_prefix":"","next_prefix":"2"},"2":{"id":233822,"text":"Bankruptcy or receivership of the wholesaler;","type":"section","prefixes":["2"],"prefix":"2","entire_prefix":"2","prefix_anchor":"2","level":1,"prior_prefix":"1","next_prefix":"3"},"3":{"id":233823,"text":"Assignment for the benefit of creditors or similar disposition of the assets of the wholesaler other than the creation of a security interest in the assets of a wholesaler for the purpose of securing financing in the ordinary course of business; or","type":"section","prefixes":["3"],"prefix":"3","entire_prefix":"3","prefix_anchor":"3","level":1,"prior_prefix":"2","next_prefix":"4"},"4":{"id":233824,"text":"Failure by the wholesaler to substantially comply, without reasonable excuse or justification, with any reasonable and material requirement imposed upon him in writing by the brewery, including, but not limited to, a substantial failure by a beer wholesaler to (i) maintain a sales volume of his brewery’s brand or brands, (ii) render services comparable in quality, quantity or volume to the sales volumes maintained and services rendered by other wholesalers of the same brand or brands within the Commonwealth, or (iii) failure to obtain the consent of the brewery to a transfer of a wholesaler’s business unless a determination has been made by the Board pursuant to § 4.1-507 that such consent was unreasonably withheld by the brewery. In any determination as to whether a wholesaler has failed to substantially comply, without reasonable excuse or justification, with any reasonable and material requirement imposed upon him by the brewery, consideration shall be given to the relative size, population, geographical location, number of retail outlets and demand for the products applicable to the territory of the wholesaler in question and to comparable territories.\n\t\t\tGood cause shall not be construed to exist without a finding of a material deficiency for which the wholesaler is responsible in any case in which good cause is alleged to exist based on circumstances not specifically set forth in subdivisions 1 through 4 of this section.","type":"section","prefixes":["4"],"prefix":"4","entire_prefix":"4","prefix_anchor":"4","level":1,"prior_prefix":"3"}},"ancestry":[{"id":13131,"edition_id":1,"name":"Beer Franchise Act","identifier":"5","label":"chapter","depth":3,"order_by":1,"parent_id":13130,"metadata":{},"date_created":"2026-06-26 03:44:19","date_modified":"2026-06-26 03:44:19","permalink":{"id":219337,"object_type":"structure","relational_id":13131,"identifier":"5","token":"4.1\/I\/5","url":"\/4.1\/I\/5\/","edition_id":1,"permalink":0,"preferred":1}},{"id":13130,"edition_id":1,"name":"Alcoholic Beverage Control Act","identifier":"I","label":"subtitle","depth":2,"order_by":1,"parent_id":13129,"metadata":{},"date_created":"2026-06-26 03:44:19","date_modified":"2026-06-26 03:44:19","permalink":{"id":218571,"object_type":"structure","relational_id":13130,"identifier":"I","token":"4.1\/I","url":"\/4.1\/I\/","edition_id":1,"permalink":0,"preferred":1}},{"id":13129,"edition_id":1,"name":"Alcoholic Beverage and Cannabis Control","identifier":"4.1","label":"title","depth":1,"order_by":1,"parent_id":null,"metadata":{},"date_created":"2026-06-26 03:44:19","date_modified":"2026-06-26 03:44:19","permalink":{"id":218569,"object_type":"structure","relational_id":13129,"identifier":"4.1","token":"4.1","url":"\/4.1\/","edition_id":1,"permalink":0,"preferred":1}}],"structure_contents":[{"id":54985,"structure_id":13131,"section_number":"4.1-500","catch_line":"Definitions","url":"\/4.1-500\/","token":"4.1\/I\/5\/4.1-500","metadata":false},{"id":83515,"structure_id":13131,"section_number":"4.1-501","catch_line":"Applicability","url":"\/4.1-501\/","token":"4.1\/I\/5\/4.1-501","metadata":false},{"id":58797,"structure_id":13131,"section_number":"4.1-502","catch_line":"No inducement or coercion","url":"\/4.1-502\/","token":"4.1\/I\/5\/4.1-502","metadata":false},{"id":73349,"structure_id":13131,"section_number":"4.1-503","catch_line":"Sales territory","url":"\/4.1-503\/","token":"4.1\/I\/5\/4.1-503","metadata":false},{"id":76675,"structure_id":13131,"section_number":"4.1-504","catch_line":"Sale of brewery","url":"\/4.1-504\/","token":"4.1\/I\/5\/4.1-504","metadata":false},{"id":64225,"structure_id":13131,"section_number":"4.1-505","catch_line":"Cancellation","url":"\/4.1-505\/","token":"4.1\/I\/5\/4.1-505","metadata":false},{"id":68432,"structure_id":13131,"section_number":"4.1-506","catch_line":"Notice of intent to terminate","url":"\/4.1-506\/","token":"4.1\/I\/5\/4.1-506","metadata":false},{"id":82189,"structure_id":13131,"section_number":"4.1-507","catch_line":"Transfer of business","url":"\/4.1-507\/","token":"4.1\/I\/5\/4.1-507","metadata":false},{"id":54162,"structure_id":13131,"section_number":"4.1-508","catch_line":"Remedies","url":"\/4.1-508\/","token":"4.1\/I\/5\/4.1-508","metadata":false},{"id":63316,"structure_id":13131,"section_number":"4.1-509","catch_line":"Board proceedings and appellate review","url":"\/4.1-509\/","token":"4.1\/I\/5\/4.1-509","metadata":false},{"id":84856,"structure_id":13131,"section_number":"4.1-509.1","catch_line":"Board proceedings; contemplated actions by brewery or wholesaler","url":"\/4.1-509.1\/","token":"4.1\/I\/5\/4.1-509.1","metadata":false},{"id":79517,"structure_id":13131,"section_number":"4.1-510","catch_line":"Price of product","url":"\/4.1-510\/","token":"4.1\/I\/5\/4.1-510","metadata":false},{"id":84245,"structure_id":13131,"section_number":"4.1-511","catch_line":"Increase of prices","url":"\/4.1-511\/","token":"4.1\/I\/5\/4.1-511","metadata":false},{"id":55929,"structure_id":13131,"section_number":"4.1-512","catch_line":"Retaliatory action prohibited","url":"\/4.1-512\/","token":"4.1\/I\/5\/4.1-512","metadata":false},{"id":69761,"structure_id":13131,"section_number":"4.1-513","catch_line":"Management","url":"\/4.1-513\/","token":"4.1\/I\/5\/4.1-513","metadata":false},{"id":82770,"structure_id":13131,"section_number":"4.1-514","catch_line":"Discrimination prohibited","url":"\/4.1-514\/","token":"4.1\/I\/5\/4.1-514","metadata":false},{"id":81269,"structure_id":13131,"section_number":"4.1-515","catch_line":"Waiver prohibited; conflicts of laws","url":"\/4.1-515\/","token":"4.1\/I\/5\/4.1-515","metadata":false},{"id":72076,"structure_id":13131,"section_number":"4.1-516","catch_line":"Right of free association","url":"\/4.1-516\/","token":"4.1\/I\/5\/4.1-516","metadata":false},{"id":77573,"structure_id":13131,"section_number":"4.1-517","catch_line":"Reasonableness and good faith","url":"\/4.1-517\/","token":"4.1\/I\/5\/4.1-517","metadata":false}],"previous_section":{"id":76675,"structure_id":13131,"section_number":"4.1-504","catch_line":"Sale of brewery","url":"\/4.1-504\/","token":"4.1\/I\/5\/4.1-504","metadata":false},"next_section":{"id":68432,"structure_id":13131,"section_number":"4.1-506","catch_line":"Notice of intent to terminate","url":"\/4.1-506\/","token":"4.1\/I\/5\/4.1-506","metadata":false},"metadata":false,"official_url":"https:\/\/law.lis.virginia.gov\/vacode\/4.1-505\/","history_text":"

This law was first created in 1978. The record of its establishment is cataloged in chapter 579 of that year\u2019s edition of \u201cActs of Assembly,\u201d the annual state publication listing all changes made to the Code of Virginia in that year. Unfortunately, the 1978 \u201cActs\u201d aren\u2019t available online. It has been modified 5 times. Those modifications are cataloged by \u201cThe Acts of Assembly,\u201d a state publication, by year and chapter. Those modifications that can be read on the General Assembly\u2019s website will be linked accordingly. Those modifications are as follows: in 1985, chapter 549; in 1987, chapter 247; in 1989, chapter 272; in 1993, chapter 866; in 1996, chapter 3<\/a>.<\/p>","references":[{"id":76675,"section_number":"4.1-504","catch_line":"Sale of brewery","order_by":null,"url":"\/4.1-504\/"},{"id":68432,"section_number":"4.1-506","catch_line":"Notice of intent to terminate","order_by":null,"url":"\/4.1-506\/"},{"id":54162,"section_number":"4.1-508","catch_line":"Remedies","order_by":null,"url":"\/4.1-508\/"}],"refers_to":[{"id":68432,"section_number":"4.1-506","catch_line":"Notice of intent to terminate","order_by":null,"url":"\/4.1-506\/"},{"id":82189,"section_number":"4.1-507","catch_line":"Transfer of business","order_by":null,"url":"\/4.1-507\/"}],"permalink":{"id":219359,"object_type":"law","relational_id":64225,"identifier":"4.1-505","token":"4.1\/I\/5\/4.1-505","url":"\/4.1-505\/","edition_id":1,"permalink":0,"preferred":1},"url":"\/4.1-505\/","token":"4.1\/I\/5\/4.1-505","dublin_core":{"Title":"Cancellation","Type":"Text","Format":"text\/html","Identifier":"\u00a7 4.1-505","Relation":"Code of Virginia"},"html":"\n\t\t\t\t\t\t

Notwithstanding the terms, provisions or conditions of any agreement<\/span>, no brewery<\/span> shall unilaterally amend<\/span>, cancel, terminate or refuse to continue to renew any agreement<\/span>, or unilaterally cause a wholesaler to resign from an agreement<\/span>, unless the brewery<\/span> has first complied with \u00a7 4.1-506<\/a> and good cause exists for amendment, termination, cancellation, nonrenewal, noncontinuation or causing a resignation. Good cause shall not include the sale<\/span> or purchase of a brewery<\/span>. Good cause shall include, but is not limited to, the following:<\/p><\/section>\n\t\t\t\t\t\t

1.<\/span> Revocation<\/span> of the wholesaler’s license to do business in the Commonwealth; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> Bankruptcy<\/span> or receivership of the wholesaler; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

3.<\/span> Assignment for the benefit of creditors<\/span> or similar disposition<\/span> of the assets<\/span> of the wholesaler other than the creation of a security interest in the assets<\/span> of a wholesaler for the purpose of securing financing in the ordinary course of business; or <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

4.<\/span> Failure by the wholesaler to substantially comply, without reasonable excuse or justification, with any reasonable and material<\/span> requirement imposed upon him in writing by the brewery<\/span>, including, but not limited to, a substantial failure by a beer<\/span> wholesaler to (i) maintain a sales<\/span> volume of his brewery<\/span>’s brand<\/span> or brands<\/span>, (ii) render services comparable in quality, quantity or volume to the sales<\/span> volumes maintained and services rendered by other wholesalers of the same brand<\/span> or brands<\/span> within the Commonwealth, or (iii) failure to obtain the consent of the brewery<\/span> to a transfer of a wholesaler’s business unless a determination has been made by the Board<\/span> pursuant to § 4.1-507<\/a> that such consent was unreasonably withheld by the brewery<\/span>. In any determination as to whether a wholesaler has failed to substantially comply, without reasonable excuse or justification, with any reasonable and material<\/span> requirement imposed upon him by the brewery<\/span>, consideration shall be given to the relative size, population, geographical location, number of retail outlets and demand for the products applicable to the territory<\/span> of the wholesaler in question and to comparable territories.\n\t\t\tGood cause shall not be construed to exist without a finding<\/span> of a material<\/span> deficiency for which the wholesaler is responsible in any case in which good cause is alleged to exist based on circumstances not specifically set forth in subdivisions 1 through 4 of this section. <\/i><\/a><\/p><\/section>","plain_text":" CODE OF VIRGINIA\n\nCANCELLATION (\u00a7 4.1-505)\n\nNotwithstanding the terms, provisions or conditions of any agreement, no brewery\nshall unilaterally amend, cancel, terminate or refuse to continue to renew any\nagreement, or unilaterally cause a wholesaler to resign from an agreement,\nunless the brewery has first complied with \u00a7 4.1-506 and good cause exists for\namendment, termination, cancellation, nonrenewal, noncontinuation or causing a\nresignation. Good cause shall not include the sale or purchase of a brewery.\nGood cause shall include, but is not limited to, the following:\n\n1. Revocation of the wholesaler’s license to do business in the\nCommonwealth;\n\n2. Bankruptcy or receivership of the wholesaler;\n\n3. Assignment for the benefit of creditors or similar disposition of the assets\nof the wholesaler other than the creation of a security interest in the assets\nof a wholesaler for the purpose of securing financing in the ordinary course of\nbusiness; or\n\n4. Failure by the wholesaler to substantially comply, without reasonable excuse\nor justification, with any reasonable and material requirement imposed upon him\nin writing by the brewery, including, but not limited to, a substantial failure\nby a beer wholesaler to (i) maintain a sales volume of his brewery’s brand\nor brands, (ii) render services comparable in quality, quantity or volume to the\nsales volumes maintained and services rendered by other wholesalers of the same\nbrand or brands within the Commonwealth, or (iii) failure to obtain the consent\nof the brewery to a transfer of a wholesaler’s business unless a\ndetermination has been made by the Board pursuant to § 4.1-507 that such\nconsent was unreasonably withheld by the brewery. In any determination as to\nwhether a wholesaler has failed to substantially comply, without reasonable\nexcuse or justification, with any reasonable and material requirement imposed\nupon him by the brewery, consideration shall be given to the relative size,\npopulation, geographical location, number of retail outlets and demand for the\nproducts applicable to the territory of the wholesaler in question and to\ncomparable territories.\n\t\t\tGood cause shall not be construed to exist without a finding of a material\ndeficiency for which the wholesaler is responsible in any case in which good\ncause is alleged to exist based on circumstances not specifically set forth in\nsubdivisions 1 through 4 of this section.\n\nHISTORY: 1978, c. 579, \u00a7 4-118.7; 1985, c. 549; 1987, c. 247; 1989, c. 272;\n1993, c. 866; 1996, c. 3.","edition":{"id":1,"name":"2025","slug":"2025","date_created":"2026-06-21 22:39:22","date_modified":"2026-06-21 22:39:22","current":1,"order_by":1,"last_import":null}}