4 1 service mark, or other identifying symbol or name under a 2 franchise. 3 (5) The term "refiner" means a person engaged in the 4 refining or importing of motor fuel, and includes any person 5 who (other than by means of a franchise) controls, is con6 trolled by, or is under common control with, a person engaged 7 in the refining or importing of motor fuel. 8 (6) The term "retailer" means a person who purchases 9 motor fuel for sale to the general public for ultimate con 10 sumption. 11 (7) The term "motor fuel" means gasoline and diesel 12 fuel of a type distributed for use as a fuel in any self-propelled 13 vehicle which is designed primarily for use on public streets, 14 roads, and highways. 15 (8) The phrase "failure to comply" does not include 16 any failure which is only technical or unimportant to the 17 franchise relationship. 18 (9) The phrase "failure to renew" includes a termina 19 tion or cancellation of a franchise (A) at the conclusion of the term, or on the expiration date, stated in the franchise, or (B) at any time in the case of a franchise which does not state a term or an expiration date. 5 1 2 3 SANCTITY OF FRANCHISE RELATIONSHIP TERMINATION OR CANCELLATION SEC. 102. No franchisor may, prior to the conclusion 4 of the term, or the expiration date, stated in the franchise, 5 terminate or cancel such franchise, unless (1) the requirements of section 105 are met; and (2) (A) the franchisee failed to comply, without reasonable excuse or justification, with any term of the franchise, which term is both reasonable and of material significance to the franchise relationship, and, with respect to such failure, the franchisor first acquired actual or constructive knowledge not more than one hundred and eighty days prior to the date of such termination or cancellation; (B) an event occurs which is relevant to the operation of the franchise relationship, as a result of which, termination or cancellation of the franchise is reasonable, and, with respect to such event, the franchisor first acquired actual or constructive knowledge no more than one hundred and eighty days prior to the date of such termination or cancellation; or (C) not more than one hundred and eighty days prior to the date of such termination or cancellation, the 10 6 franchisor and the franchisee agree in writing to terminate or cancel the franchise, the franchisee is promptly provided with a copy of such agreement, together with a summary statement of the provisions of this title, and, within seven days after the date on which the franchisee is provided a copy of such agreement, the franchisee has confirmed and not repudiated such agreement. SANCTITY OF FRANCHISE RELATIONSHIP-FAILURE TO RENEW SEC. 103. No franchisor may fail to renew a franchise 11 unless (1) the requirements of section 105 are met; and (2) except as provided in section 104 (A) the franchise failed to comply, without reasonable excuse or justification, with any term of the franchise, which term is both reasonable and of material significance to the franchise relationship, and, with respect to such failure, the franchisor first acquired actual or constructive knowledge not more than one hundred and eighty days prior to the date of such failure to renew; (B) an event occurs which is relevant to the operation of the franchise relationship, as a result of which, failure to renew the franchise is reason able, and, with respect to such event, the franchisor 7 first acquired actual or constructive knowledge not more than one hundred and eighty days prior to the date of such failure to renew; or (C) not more than one hundred and eighty days prior to the date of such failure to renew— (i) the franchisor and the franchisee agree in writing not to renew the franchise, the franchisee is promptly provided with a copy of such agreement, together with a summary statement of the provisions of this title, and, within seven days after the date on which the franchisee is provided a copy of such agreement, the franchisee has confirmed and not repudiated such agreement; (ii) the franchisor and the franchisee fail to agree to reasonable changes or reasonable additions to the terms of the franchise; or (iii) the franchisor's interests in premises which are leased to the franchisee expires and such expiration could not reasonably have been avoided by the franchisor. TRIAL FRANCHISE PERIOD-FAILURE TO RENEW SEC. 104. (a) The provisions of section 103 (2) (with respect to failure to renew) shall not apply to the initial 1 term (not including any extensions or renewals of such 2 term) of any franchise— 3 4 5 6 7 8 9 10 11 12 23 13 14 15 16 17 18 (1) commenced on or after the date of enactment of this Act; (2) in which the franchisee has not, prior to the date of enactment of this Act, been a party to a franchise relationship with a franchisor; (3) which is in writing and which states clearly and conspicuously— (A) that the franchise is a trial franchise; (B) the duration of the initial term of the franchise, (C) that the franchisor may fail to renew the franchise at the conclusion of the initial term stated in the franchise by notifying the franchisee of the franchisor's intention to fail to renew in accordance with the provisions of section 105 of this Act; and (D) that the provisions of section 103 (2), limiting the right of a franchisor to fail to renew a franchise, are not applicable; and (4) the initial term of which is for a period of not more than one year. (b) The provisions of section 103 (2) shall apply to any 24 failure to renew a franchise which is extended or renewed 25 beyond the initial term of such franchise. |