15 U.S.C. § 2804 — Notification of termination or nonrenewal of franchise relationship

submitted 48 years ago by Pub. L. 95-297 to r/title-15-COMMERCE-AND-TRADE · 543 words · no verdicts yet

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Before ending a franchise or refusing to renew a franchise relationship, a franchisor generally must give the franchisee written notice at least 90 days in advance. The section provides shorter-notice circumstances, a 180-day rule for certain withdrawals, required notice contents, and a statutory summary.

(a) Before termination or nonrenewal, the franchisor must notify the franchisee in the manner in (c), generally at least 90 days before it takes effect, unless (b) applies. (b)(1) If 90-day notice would not be reasonable, the franchisor must notify the affected franchisee as soon as reasonably practicable. For leased marketing premises, it may not create a new franchise there until 30 days after the later of (I) posting or personal delivery of notice or (II) termination or nonrenewal taking effect. If the agreement allows, it may repossess the premises and, when reasonable, operate them through employees or agents. (2) For termination or nonrenewal under section 2802(b)(2)(E) or 2803(c)(2), the franchisor must notify the franchisee at least 180 days before effectiveness and promptly send the notice and a plan for the schedule and conditions of withdrawing motor-fuel marketing through retail outlets in the relevant area to the Governor of each State containing part of that area. (c) Notice must be written, posted by certified mail or personally delivered, and contain (A) the intent to terminate or not renew and reasons, (B) the effective date, and (C) the subsection (d) summary. (d)(1) Within 30 days after June 19, 1978, the Energy Secretary must prepare and publish in the Federal Register a simple, concise summary of this subchapter, including franchisor and franchisee responsibilities and available remedies and relief. (2) If a summary must be furnished before publication, it may instead be furnished within five days after publication.

the actual law source: uscode.house.gov ↗public domain

(a) General requirements applicable to franchisor

Prior to termination of any franchise or nonrenewal of any franchise relationship, the franchisor shall furnish notification of such termination or such nonrenewal to the franchisee who is a party to such franchise or such franchise relationship—

(1)

in the manner described in subsection (c); and

(2)

except as provided in subsection (b), not less than 90 days prior to the date on which such termination or nonrenewal takes effect.

(b) Additional requirements applicable to franchisor

(1)

In circumstances in which it would not be reasonable for the franchisor to furnish notification, not less than 90 days prior to the date on which termination or nonrenewal takes effect, as required by subsection (a)(2)—

(A)

such franchisor shall furnish notification to the franchisee affected thereby on the earliest date on which furnishing of such notification is reasonably practicable; and

(B)

in the case of leased marketing premises, such franchisor—

(i)

may not establish a new franchise relationship with respect to such premises before the expiration of the 30-day period which begins—

(I)

on the date notification was posted or personally delivered, or

(II)

if later, on the date on which such termination or nonrenewal takes effect; and

(ii)

may, if permitted to do so by the franchise agreement, repossess such premises and, in circumstances under which it would be reasonable to do so, operate such premises through employees or agents.

(2)

In the case of any termination of any franchise or any nonrenewal of any franchise relationship pursuant to the provisions of section 2802(b)(2)(E) of this title or section 2803(c)(2) of this title, the franchisor shall—

(A)

furnish notification to the franchisee not less than 180 days prior to the date on which such termination or nonrenewal takes effect; and

(B)

promptly provide a copy of such notification, together with a plan describing the schedule and conditions under which the franchisor will withdraw from the marketing of motor fuel through retail outlets in the relevant geographic area, to the Governor of each State which contains a portion of such area.

Notification under this section—

(1)

shall be in writing;

(2)

shall be posted by certified mail or personally delivered to the franchisee; and

(3)

shall contain—

(A)

a statement of intention to terminate the franchise or not to renew the franchise relationship, together with the reasons therefor;

(B)

the date on which such termination or nonrenewal takes effect; and

(C)

the summary statement prepared under subsection (d).

(d) Preparation, publication, etc., of statutory summaries

(1)

Not later than 30 days after June 19, 1978, the Secretary of Energy shall prepare and publish in the Federal Register a simple and concise summary of the provisions of this subchapter, including a statement of the respective responsibilities of, and the remedies and relief available to, any franchisor and franchisee under this subchapter.

(2)

In the case of summaries required to be furnished under the provisions of section 2802(b)(2)(D) of this title or subsection (c)(3)(C) of this section before the date of publication of such summary in the Federal Register, such summary may be furnished not later than 5 days after it is so published rather than at the time required under such provisions.

Source credit: (Pub. L. 95–297, title I, § 104, June 19, 1978, 92 Stat. 329.)

history & why it existsrecord from the source credit

1978Enacted · Pub. L. 95-297 · 92 Stat. 329

A history note hasn’t been published yet. The record shows enactment by Pub. L. 95-297 on 1978-06-19.

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