15 U.S.C. § 2803 : US Code - Section 2803: Trial and interim franchises

Search 15 U.S.C. § 2803 : US Code - Section 2803: Trial and interim franchises

(a) Nonapplicability of statutory nonrenewal provisions
The provisions of section 2802 of this title shall not apply to
the nonrenewal of any franchise relationship -
(1) under a trial franchise; or
(2) under an interim franchise.
(b) Definitions
For purposes of this section -
(1) The term "trial franchise" means any franchise -
(A) which is entered into on or after June 19, 1978;
(B) the franchisee of which has not previously been a party
to a franchise with the franchisor;
(C) the initial term of which is for a period of not more
than 1 year; and
(D) which is in writing and states clearly and conspicuously -

(i) that the franchise is a trial franchise;
(ii) the duration of the initial term of the franchise;
(iii) that the franchisor may fail to renew the franchise
relationship at the conclusion of the initial term stated in
the franchise by notifying the franchisee, in accordance with
the provisions of section 2804 of this title, of the
franchisor's intention not to renew the franchise
relationship; and
(iv) that the provisions of section 2802 of this title,
limiting the right of a franchisor to fail to renew a
franchise relationship, are not applicable to such trial
franchise.
(2) The term "trial franchise" does not include any unexpired
period of any term of any franchise (other than a trial
franchise, as defined by paragraph (1)) which was transferred or
assigned by a franchisee to the extent authorized by the
provisions of the franchise or any applicable provision of State
law which permits such transfer or assignment, without regard to
any provision of the franchise.
(3) The term "interim franchise" means any franchise -
(A) which is entered into on or after June 19, 1978;
(B) the term of which, when combined with the terms of all
prior interim franchises between the franchisor and the
franchisee, does not exceed 3 years;
(C) the effective date of which occurs immediately after the
expiration of a prior franchise, applicable to the marketing
premises, which was not renewed if such nonrenewal -
(i) was based upon a determination described in section
2802(b)(2)(E) of this title, and
(ii) the requirements of section 2802(b)(2)(E) of this
title were satisfied; and
(D) which is in writing and states clearly and conspicuously -

(i) that the franchise is an interim franchise;
(ii) the duration of the franchise; and
(iii) that the franchisor may fail to renew the franchise
at the conclusion of the term stated in the franchise based
upon a determination made by the franchisor in good faith and
in the normal course of business to withdraw from the
marketing of motor fuel through retail outlets in the
relevant geographic market area in which the marketing
premises are located if the requirements of section
2802(b)(2)(E)(ii) and (iii) of this title are satisfied.
(c) Nonrenewal upon meeting statutory notification requirements
If the notification requirements of section 2804 of this title
are met, any franchisor may fail to renew any franchise
relationship -
(1) under any trial franchise, at the conclusion of the initial
term of such trial franchise; and
(2) under any interim franchise, at the conclusion of the term
of such interim franchise, if -
(A) such nonrenewal is based upon a determination described
in section 2802(b)(2)(E) of this title; and
(B) the requirements of section 2802(b)(2)(E)(ii) and (iii)
of this title are satisfied.