SNOW HILL – A request from the 7-Eleven outside Berlin to sell beer and wine was denied by the county’s licensing board.
The Worcester County Board of License Commissioners (BLC) voted unanimously to deny a request for a beer and wine license from 7-Eleven. Board members didn’t agree with applicant Mustafa Nawaz’s assertions that his wasn’t a chain store.
“This business is run, financed and driven by 7-Eleven,” BLC member Charles Nichols said.
Under the statute that governs alcoholic beverage licenses, the board is not allowed to issue licenses to chain stores. A 1979 legal decision, however, complicated the issue, and in the ensuing years several chain stores in Worcester County were able to get licenses. When Wawa sought a license to sell beer and wine around 2000, however, the board denied the request. When Wawa challenged that determination because various local chain stores sold beer and wine, the board acknowledged its mistake. Rather than have the board revoke those stores’ licenses, the state legislature grandfathered them in.
Nawaz, who wants his 7-Eleven to be competitive with other stores in the area selling beer and wine, approached the board this week seeking a license. Hugh Cropper, attorney representing Nawaz, argued his client was an independent contractor. While there are corporate-owned 7-Elevens, this isn’t one. Cropper said Nawaz was the one who hired and fired staff, paid them, trained them. He said the only things Nawaz’s agreement with 7-Eleven provided were the ability to use the trademark and the lease of the store.
Tom Coates, the board’s attorney, questioned the franchise agreement. Nawaz confirmed the franchise fee would change if the store was issued a beer and wine license. Coates also brought up the fact the store was labeled with 7-Eleven signs and employees wore 7-Eleven uniforms.
When Coates asked if 7-Eleven was allowed to inspect Nawaz’s store and audit it, Nawaz confirmed that the company was able to do so.
Cropper said that many of the issues Coates brought up were in any landlord-tenant agreement. He stressed that if the store got a beer and wine license, 7-Eleven would get a higher rent but the rent would remain the same whether the store made $500 in beer sales or $5 million in beer sales. He said that regardless of previous court opinions, the board was governed by the statute.
“You have to make your own determination,” he said. “It’s your interpretation.”
BLC member Marty Pusey said she was having difficulty understanding Nawaz’s position because it looked like 7-Eleven had a lot of control over the business.
“It appears 7-Eleven has their hands on every aspect,” she said.
Nawaz maintained he was an independent contractor and only wanted to be able to sell beer and wine as other area convenience stores did.
“I’m the one financially responsible at the store,” he said.
William Esham, chairman of the board, said that nevertheless 7-Eleven controlled how he operated the business. The board voted 3-0 to deny the request. Nichols said he considered the 7-Eleven a chain store.
“They have a pecuniary interest in my view,” he said.
