Breakthru Missouri Seeks Court Reaffirmation of Franchise Law

Breakthru Beverage Missouri recently filed a lawsuit against Atomic Brands in the Circuit Court, Twenty-Second Judicial District, in St. Louis City, Missouri. The legal action follows Atomic’s notification of its intent to terminate its distribution relationship with Breakthru in the state.

Breakthru has served as Atomic’s distribution partner in Missouri since 2018, helping to grow the brand’s presence and performance in the market. Through this partnership, Atomic’s Missouri business has grown in market share, accounts sold and revenue, according to the distributor, making Missouri one of Atomic’s largest markets nationally.

“Missouri franchise law requires good cause for distributor terminations which is contrary to our work in building Atomic Brands’ presence in Missouri and transforming it into one of their largest markets nationally,” said Scott Johnson, EVP of Breakthru Missouri, in a news release. “We are taking legal action not only to protect our rights, business, and the integrity of our partnerships, but to ensure distribution partners are treated fairly in Missouri.”

Atomic has cited the federal court’s interpretation of Missouri’s franchise law as the basis for ending the relationship, according to the distributor. Breakthru strongly disagrees with this position and believes the federal court decisions, including the ruling in Major Brands, Inc. v. Mast-Jägermeister US, Inc., misinterpret Missouri franchise law and do not align with the precedents set by the Missouri Supreme Court. Breakthru is asking the Missouri state court to reaffirm the Missouri Supreme Court’s established rulings on the franchise law.

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