Dual Interests Prohibited

(1) Manufacturer, Importer, Non-Resident Seller, and Non-Manufacturer Non-Resident Seller. (a) No manufacturer or representative of the same shall have any kind of direct or indirect interest in any wholesaler or any retail on-premise or off-premise establishment in Tennessee. A prohibited interest includes the possessing of any financial or other interest in the establishment, providing or having interest in any fixtures or furnishings, stock ownership, loans, gifts, the securing of loans, the guaranteeing of any loan payment, or participating in the profits. (b) No importer, non-resident seller, non-manufacturer non-resident seller, or representative of the same shall have any kind of direct or indirect interest in any retail on-premise or off-premise establishment in Tennessee. A prohibited interest includes the possessing of any financial or other interest in the establishment, providing or having interest in any fixtures or furnishings, stock ownership, loans, gifts, the securing of loans, the guaranteeing of any loan payment, or participating in the profits. (c) An importer, non-resident seller, non-manufacturer non-resident seller, or representative of the same may have a direct or indirect interest in a wholesaler. (d) “Indirect interest” as used in this rule means any kind of interest in the wholesaler, retail on-premise, or retail off-premise establishment by way of stock ownership, loan, partner’s interest, or control, including the use of a brand name, trademark, or sponsorship of the, manufacturer wholesaler, importer, non-resident seller, non- manufacturer non-resident seller, or representative of the same. LOCAL OPTION LIQUOR RULES CHAPTER 0100-03 (e) “Direct or indirect interest” between 1) a manufacturer, importer, non-resident seller, non-manufacturer non-resident seller, or representative of the same and 2) an on- premise establishment does not include: 1. An interest held by a spouse or child over the age of twenty-one (21) as separate and distinct property; provided, that there is no commingling of assets or sharing of control in such arrangement; 2. An interest of a person or entity having less than a five percent (5%) ownership interest in a manufacturer, importer, non-resident seller, non-manufacturer non- resident seller, or on-premise establishment; or 3. An interest held in an irrevocable trust by an independent trustee. (2) Wholesaler and Retailer. No wholesaler, and no partner, member, or person owning stock in a corporation licensed as a wholesaler, and no employee of same, shall have any interest in any business licensed as an on-premise or off-premise retailer, and no retailer and no retailer’s employee, shall have any such interest in any wholesale establishment. A prohibited interest includes the possessing of any financial or other interest in the establishment, providing or having interest in any fixtures or furnishings, stock ownership, loans, gifts, the securing of loans, the guaranteeing of any loan payment, or participating in the profits.