Wiggin and Dana's Franchise Law Blog

Name Change

According to this article, some Rhode Island liquor stores are faced with a dilemma -- either change their store names or risk losing their business licenses. The Rhode Island Department of Business Regulation has just begun enforcing a law passed in 2004 that prevents liquor stores from using names that suggest the store is part of a franchise. In Rhode Island franchise stores are not permitted to hold liquor licenses for the retail sale of alcohol. State authorities delayed enforcing the two-year-old law until several months after a federal appeals court declined a store’s request to stop the state from enforcing the law while a legal challenge is pending. The law is intended to protect consumer choices and ensure equitable pricing. With this intent in mind, a state official commented, “Retail consumers often assume chains are bigger operations with better selections, and perhaps lower prices.”