15 U.S.C. § 2804 : US Code - Section 2804: Notification of termination or nonrenewal of franchise relationship
Search 15 U.S.C. § 2804 : US Code - Section 2804: Notification of termination or nonrenewal of franchise relationship
(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) of this section;
and
(2) except as provided in subsection (b) of this section, 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) of this section -
(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.
(c) Manner and form of notification
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) of
this section.
(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.
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