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House Journal: Page 2056: Friday, April 28, 1995

Page 4

 1   spouse, child or children heir, or a partner
active in
 2   the management of the franchisee unless the successor
 3   fails to meet within one year the then current
 4   reasonable qualifications of the franchisor for
 5   franchisees and the enforcement of the reasonable
 6   current qualifications is not arbitrary or capricious
 7   when compared to actions of the franchisor in other
 8   similar circumstances.
 9     b.  The succession of a spouse, child, partner, or
10   other owner as operating manager upon the death or
11   disability of the operating manager, unless the
12   successor fails to meet the then current reasonable
13   qualifications of the franchisor for an operating
14   manager, and enforcement of the reasonable current
15   qualifications is not arbitrary or capricious when
16   compared to actions of the franchisor in other similar
17   circumstances.
18     c. b.  Incorporation of a proprietorship
19   franchisee, provided that such incorporation does not
20   prohibit a franchisor from requiring a personal
21   guaranty by the franchisee of obligations related to
22   the franchise.
23     d. c.  A transfer within an existing ownership
24   group of a franchise provided that more than fifty
25   percent of the franchise is held by persons who meet
26   the franchisor's reasonable current qualifications for
27   franchisees.  If less than fifty percent of the
28   franchise would be owned by persons who meet the
29   franchisor's reasonable current qualifications, the
30   franchisor may refuse to authorize the transfer,
31   provided that enforcement of the reasonable current
32   qualifications is not arbitrary or capricious when
33   compared to actions of the franchisor in other similar
34   circumstances.
35     e. d.  A transfer of less than a controlling
36   interest in the franchise to the franchisee's spouse
37   or child or children, provided that more than fifty
38   percent of the entire franchise is held by those who
39   meet the franchisor's reasonable current
40   qualifications.  If less than fifty percent of the
41   franchise would be owned by persons who meet the
42   franchisor's reasonable current qualifications, the
43   franchisor may refuse to authorize the transfer,
44   provided that enforcement of the reasonable current
45   qualifications is not arbitrary or capricious when
46   compared to actions of the franchisor in other similar
47   circumstances.
48     f. e.  A transfer of less than a controlling
49   interest in the franchise of an employee stock
50   ownership plan, or employee incentive plan, provided

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.

Last update: Sun Jan 14 21:05:02 CST 1996
URL: /DOCS/GA/76GA/Session.1/HJournal/02000/02056.html
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