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House Journal: Page 2054: Friday, April 28, 1995

48   transfer any of the following:
49     a.  That the transferee successfully complete a
50   reasonable training program.

Page 2  

 1     b.  That a reasonable transfer fee be paid to
 2   reimburse the franchisor for the franchisor's
 3   reasonable and actual expenses directly attributable
 4   to the transfer.
 5     c.  That the franchisee pay or make provision
 6   reasonably acceptable to the franchisor to pay any
 7   amount due the franchisor or the franchisor's
 8   affiliate.
 9     d.  That the financial terms of the transfer comply
10   at the time of the transfer with the franchisor's
11   current financial requirements for franchisees.
12     4.  A franchisor shall not withhold consent to a
13   franchisee making a public offering of the
14   franchisee's securities without good cause, provided
15   the franchisee or the owners of the franchise retain
16   control of more than fifty percent of the voting power
17   in the franchise.
18     5. 4.  A franchisee may transfer the franchisee's
19   interest in the franchise, for the unexpired term of
20   the franchise agreement, and a franchisor shall not
21   require the franchisee or the transferee to enter into
22   a new or different franchise agreement as a condition
23   of the transfer.
24     6. 5.  A franchisee shall give the franchisor no
25   less than sixty days' written notice of a transfer
26   which is subject to the provisions of this section,
27   and on request from the franchisor shall provide in
28   writing the ownership interests of all persons holding
29   or claiming an equitable or beneficial interest in the
30   franchise subsequent to the transfer or the
31   franchisee, as appropriate.  A franchisee shall not
32   circumvent the intended effect of a contractual
33   provision governing the transfer of the franchise or
34   an interest in the franchise by means of a management
35   agreement, lease, profit-sharing agreement,
36   conditional assignment, or other similar device.
37     7. 6.  A franchisor shall not transfer its
interest
38   in a franchise unless the franchisor makes reasonable
39   provision for the performance of the franchisor's
40   obligations under the franchise agreement by the
41   transferee.  A franchisor shall provide the franchisee
42   notice of a proposed transfer of the franchisor's
43   interest in the franchise at the time the disclosure
44   is required of the franchisor under applicable
45   securities laws, if interests in the franchisor are
46   publicly traded, or if not publicly traded, at the
47   time such disclosure would be required if the
48   interests in the franchisor were publicly traded. 
For
49   purposes of this subsection, "reasonable provision"
50   means that upon the transfer, the entity assuming the

Iowa General Assembly

Index: House Journal (76th General Assembly: Session 1)

© 1995 Cornell College and League of Women Voters of Iowa

Comments? hjourn@legis.iowa.gov.

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