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

Federal law — U.S. Code and appendices · legal_authorities

15 U.S.C. § 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); 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](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title15-section2802/b/2/E&num=0&edit

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Stable record: federal_law:legal_authorities:record_usc_6277c683df42ed699ad2393c
Source file: Laws/federal/codes/united-states-code/title-15/section-2804-notification-of-termination-or-nonrenewal-of-franchise-relationship--c5f599d885.md
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Passage SHA-256: 1f0ce4cbfaf630915c19e3b67eb7a67e8680acf21cae0ee3bc7758b09b933351

Source location: Title 15, Chapter 55, § 2804; chapter-055-petroleum-marketing-practices.md

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**(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](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title15-section2802/b/2/E&num=0&edition=prelim) or [section 2803(c)(2) of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title15-section2803/c/2&num=0&edition=prelim), 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). **(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](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title15-section2802/b/2/D&num=0&edition=prelim) 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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Federal law — U.S. Code and appendices · legal_authorities

15 U.S.C. § 2802 — Franchise relationship

**(a) General prohibition against termination or nonrenewal** Except as provided in subsection (b) and [section 2803 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title15-section2803&num=0&edition=prelim), no franchisor engaged in the sale, consignment, or distribution of motor fuel in commerce may— (1) terminate any franchise (entered into or renewed on or after June 19, 1978) prior to the conclusion of the term, or the expiration date, stated in the franchise; or (2) fail to renew any franchise relationship (without regard to the date on which the relevant franchise was entered into or renewed). **(b) Precondition and grounds for termination or nonrenewal** (1) Any franchisor may terminate any franchise (entered into or renewed on or after June 19, 1978) or may fail to renew any franchise relationship, if— (A) the notification requirements of [section 2804 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title15-section2804&num=0&edition=prelim) are met; and (B) such termination is based upon a ground described in paragraph (2) or such nonrenewal is based upon a ground described in paragraph (2) or (3). (2) For purposes of this subsection, the following are grounds for termination of a franchise or nonrenewal of a franchise relationship: (A) A failure by the franchisee to comply with any provision of the franchise, which provision is both reasonable and of material significance to the franchise relationship, if the franchisor first acquired actual or constructive knowledge of such failure— (i) not more than 120 days prior to the date on which notification of termination or nonrenewal is given, if notification is given pursuant to [section 2804(a) of this title](https://uscode.house.gov/view.xh

Source: Supplied U.S. Code snapshot — release unconfirmed · 15 U.S.C. § 2802

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Federal law — U.S. Code and appendices · legal_authorities

15 U.S.C. § 2803 — Trial and interim franchises

**(a) Nonapplicability of statutory nonrenewal provisions** The provisions of [section 2802 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title15-section2802&num=0&edition=prelim) 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](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title15-section2804&num=0&edition=prelim), of the franchisor’s intention not to renew the franchise relationship; and (iv) that the provisions of [section 2802 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title15-section2802&num=0&edition=prelim), 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 provi

Source: Supplied U.S. Code snapshot — release unconfirmed · 15 U.S.C. § 2803

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Federal law — U.S. Code and appendices · legal_authorities

15 U.S.C. § 2805 — Enforcement provisions

**(a) Maintenance of civil action by franchisee against franchisor; jurisdiction and venue; time for commencement of action** If a franchisor fails to comply with the requirements of section 2802, 2803, or 2807 of this title, the franchisee may maintain a civil action against such franchisor. Such action may be brought, without regard to the amount in controversy, in the district court of the United States in any judicial district in which the principal place of business of such franchisor is located or in which such franchisee is doing business, except that no such action may be maintained unless commenced within 1 year after the later of— (1) the date of termination of the franchise or nonrenewal of the franchise relationship; or (2) the date the franchisor fails to comply with the requirements of section 2802, 2803, or 2807 of this title. **(b) Equitable relief by court; bond requirements; grounds for nonexercise of court’s equitable powers** (1) In any action under subsection (a), the court shall grant such equitable relief as the court determines is necessary to remedy the effects of any failure to comply with the requirements of section 2802, 2803, or 2807 of this title, including declaratory judgment, mandatory or prohibitive injunctive relief, and interim equitable relief. (2) Except as provided in paragraph (3), in any action under subsection (a), the court shall grant a preliminary injunction if— (A) the franchisee shows— (i) the franchise of which he is a party has been terminated or the franchise relationship of which he is a party has not been renewed, and (ii) there exist sufficiently serious questions going to the merits to make such questions a fair ground for litigation; and (B) the court determines that, on balance, the hardships i

Source: Supplied U.S. Code snapshot — release unconfirmed · 15 U.S.C. § 2805

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Federal law — U.S. Code and appendices · legal_authorities

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

Page 1950 TITLE 15—COMMERCE AND TRADE § 2803 (1) if such termination or nonrenewal is based upon an event described in subsection (c)(5), the franchisor shall fairly apportion be- tween the franchisor and the franchisee com- pensation, if any, received by the franchisor based upon any loss of business opportunity or good will; and (2) if such termination or nonrenewal is based upon an event described in subsection (c)(7) and the leased marketing premises are subsequently rebuilt or replaced by the franchisor and operated under a franchise, the franchisor shall, within a reasonable period of time, grant to the franchisee a right of first refusal of the franchise under which such premises are to be operated. (Pub. L. 95–297, title I, § 102, June 19, 1978, 92 Stat. 324; Pub. L. 103–371, §§ 2, 3, Oct. 19, 1994, 108 Stat. 3484.) Editorial Notes AMENDMENTS 1994—Subsec. (b)(3)(A)(ii). Pub. L. 103–371, § 2, inserted ‘‘converting the leased marketing premises to oper- ation by employees or agents of the franchisor for the benefit of the franchisor or otherwise’’ after ‘‘purpose of’’. Subsec. (c)(4). Pub. L. 103–371, § 3, redesignated por- tion of introductory language of par. (4) as subpar. (A), redesignated former subpars. (A) and (B) as cls. (i) and (ii), respectively, of subpar. (A), and added subpars. (B) and (C). § 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 fran- chise 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) th

Source: Supplied 2024 U.S. Code historical extraction · 15 U.S.C. § 2804

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