SMALL BUSINESS CHAMPION

Ahallmark of Peter Franchot’s four terms as Comptroller was his unabashed, unwavering support for and advocacy of Maryland's small business community. He often called it the beating heart of the state's economy, citing statistics to back up that claim. Along Maryland’s Main Street corridors, on the family farms growing produce and raising poultry, and in the diverse manufacturers creating their innovations, Franchot has been their cheerleader and their champion.

He always plugged shopping locally, be it during tax-free week in August, Energy Star weekend in February, the lead-up to the winter holidays - and pretty much any other time of year.

Comptroller Franchot, alongside Baltimore County Councilwoman

Vicki Almond (right) and Baltimore County Register of Wills Grace Connolly (left), visit Towson Bootery in Towson.

Comptroller Franchot makes a pit stop at Rise Up Coffee in Salisbury as he makes his way down to Ocean City for the Maryland Association of Counties conference in 2018

It wasn't just talk. In the weeks preceding each of the annual shop local campaigns, Franchot criss-crossed the state, visiting boutiques, appliance stores and gift shops, purchasing everything from trousers to tchotchkes to show his support for shopping locally.

The recession of the late 2000s hit Maryland small businesses hard, cutting payrolls and leaving many struggling to survive. Some were able to pivot, finding new ways to operate and innovate with fewer resources. To honor these trendsetters, Franchot created the Better with Less Award in 2011, publicly acknowledging these entrepreneurs who inspired others and drove consumers to their doorstep.

To grasp the full nature of Maryland business owners’ struggles and successes, the Comptroller’s Business Advisory Council (BAC) was created in 2012. This quarterly forum consisted of business leaders from all industries and sectors, civic and nonprofit leaders from every corner of the state, and empowered members to voice concerns as stakeholders in the economy. Franchot always made sure that each attendee had the chance to share their insights and he used their wisdom to inform his decisions as Comptroller and as a member of the Board of Public Works. BAC participants appreciated the inclusion and the Comptroller’s leadership.

Franchot embraced his role as a strong voice for small businesses, advocating to advance policies that create wealth and jobs. After a Bureau of Revenue Estimates (BRE) report showed a $74 million economic impact of starting school after Labor Day, Franchot launched the “Let Summer Be Summer” campaign.

In 2013, the General Assembly convened a task force to study a statewide after Labor Day school start. By 2016, Governor Larry Hogan signed an executive order mandating schools to begin post Labor Day and conclude by June 15th.

“Comptroller Peter Franchot is a rare kind of elected official. I always felt heard by him. When the pandemic hit, he reached out to me personally several times to see how the Y was doing and whether there was anything he could do to help. There’s undoubtedly a lot of reasons to feel cynical about politics and politicians these days, but Peter Franchot isn’t one of them. He clearly saw his role as being as accessible as possible to Marylanders across the state, the economy and across political lines. I really admire him for that, and value his friendship and service.”

JOHN HOEY PRESIDENT & CEO, THE YMCA IN CENTRAL MARYLAND AND MEMBER OF THE COMPTROLLER’S BUSINESS ADVISORY COUNCIL

Comptroller Franchot speaks at a press conference announcing Governor Hogan’s Executive Order to mandate a post-Labor Day start for Maryland public schools

Comptroller Franchot and Ocean City Mayor Rick Meehan visit Dolle’s Candy on the Ocean City Boardwalk.

Comptroller Franchot tours MISCellaneous Distillery in Mount Airy.

Comptroller Franchot visits Emily’s Produce in Cambridge.

In the post-recession years, Maryland’s economy had stabilized and businesses were riding the financial tidal wave. Franchot wanted to draw attention to those businesses and nonprofits creating jobs, adapting to modern trends and investing in growth, so he created the Bright Lights Award for Innovation and Entrepreneurship.

Franchot chose one recipient in each of Maryland’s 24 jurisdictions that best showcased the state’s brightest assets.

The Cornerstone Award for Local Business Excellence recognized the companies and shops that were synonymous with the communities where they were located.

Recipients ranged from Baltimore County ’s Bengie’s Drive-In, the only drive-in theater still operating in Maryland, to the oldest bridal shop in the state, Lennox East, in Allegany County. Each was part of the fabric of their communities and the state of Maryland.

The topic that became Franchot ’s cause célèbre was the battle to reform Prohibition-era alcohol laws in Maryland that favored wholesalers over manufacturers and consumers. He began with the lowest hanging fruit - wine.

The direct shipping of wine was legal in 37 other states and Marylanders wanted the same option to have wine delivered directly to their doorsteps.

Franchot's team prepared an economic impact report showing the positive benefits it would have, and direct shipping became law in 2011.

Franchot led the charge in breaking up an antiquated monopoly controlled by his own home county in 2015 – the Montgomery County Department of Liquor Control. For more than eight decades, this institution controlled all alcohol distribution and distilled spirit sales in the county. The DLC was the textbook definition of a monopoly, but the county was unwilling to forgo its $30 million annual cash cow.

Retail shops, manufacturers, wholesalers and consumers wanted an end to this Depression-Era department, and Franchot became the leading voice for their cause. The Bureau of Revenue Estimates compiled a staggering report on the impact of privatizing liquor distribution and sales in Montgomery County. The analysis showed that privatization would generate $193 million in direct and indirect economic benefits, spurring the General Assembly to pass a law in 2017 partially privatizing operations that weakened the DLC's authority over producers and consumers.

Next up was the craft beer reform debate that brought statewide awareness to the state's archaic and unfair alcohol manufacturing laws. Franchot stood in solidarity with the craft beer makers, who were restricted by hostile laws established speaks at a press conference calling for the elimination of the a century earlier, which heavily benefited distributors. Even as the industry was exploding in Maryland, they had to limit taproom sales and sign near-lifetime binding contracts with distributors that severely hurt their ability to turn a profit. Change was demanded, but backroom deals between key legislators and powerful beer distributors hindered these efforts. Franchot started the Reform on Tap movement to shine a harsh spotlight on the unseemly Annapolis alliance, and generate public support.

Craft breweries across the state and their legion of loyal customers, beer lovers, and advocates for common-sense business policies, stood by Franchot.

Several breweries, thrilled to have a powerful ally in their corner, went even further.

In June 2017, Barley and Hops in Frederick created a beer to honor their “rock star” and named it Franchot Comes Alive. They even superimposed the Comptroller's face on the cover for the legendary “Frampton Comes Alive” album that inspired the beer name and used it to promote the new brew. Monocacy Brewing also released a specially crafted gem, called Saison du Franchot, that was created with locally grown malt. The name translated to the “Season of Franchot,” and could not have been more apropos.

The enormous efforts of Franchot and his team brought much-deserved attention to the need for an overhaul of Maryland’s destructive beer laws. It was 2019 when true reform began. The legislature, overwhelmed by constituent support of the issue, adopted multiple changes that significantly leveled the playing field. They passed into law many of the proposals they denied during the previous session. In subsequent years, incremental progress was made on behalf of the craft alcohol manufacturers. Franchot had lit the fire of progress that paved the way for long overdue reforms.