27 CFR § 11.36 - Termination of franchise.

---
identifier: "/us/cfr/t27/s11.36"
source: "ecfr"
legal_status: "authoritative_unofficial"
title: "27 CFR § 11.36 - Termination of franchise."
title_number: 27
title_name: "Alcohol, Tobacco Products and Firearms"
section_number: "11.36"
section_name: "Termination of franchise."
chapter_name: "ALCOHOL AND TOBACCO TAX AND TRADE BUREAU, DEPARTMENT OF THE TREASURY"
subchapter_number: "A"
subchapter_name: "ALCOHOL"
part_number: "11"
part_name: "CONSIGNMENT SALES"
positive_law: false
currency: "2026-03-24"
last_updated: "2026-03-24"
format_version: "1.1.0"
generator: "[email protected]"
authority: "15 U.S.C. 49-50; 27 U.S.C. 202 and 205."
regulatory_source: "T.D. ATF-74, 45 FR 63258, Sept. 23, 1980, unless otherwise noted."
cfr_part: "11"
---


# 11.36 Termination of franchise.

When an industry member has sold products for cash or credit to one of its wholesalers and the distributorship arrangement is subsequently terminated, stocks of the product on hand may be returned for cash or credit against outstanding indebtedness.