This file contains STRIKE and UNDERSCORE. If you cannot see either STRIKE or UNDERSCORE attributes or would like to change how these attributes are displayed, please use the following form to make the desired changes.

House Journal: Page 2058: Friday, April 28, 1995

Page 6

 1     b.  The adverse impact on the existing franchisee's
 2   annual gross sales, based on a comparison to the
 3   annual gross sales from the existing outlet or
 4   location during the twelve-month period immediately
 5   preceding the opening of the new outlet or location,
 6   is determined to have been less than five percent
 7   during the first twelve months of operation of the new
 8   outlet or location.
 9     c.  The existing franchisee, at the time the
10   franchisor develops, or grants to a franchisee the
11   right to develop, a new outlet or location is not in
12   compliance with the franchisor's then current
13   reasonable criteria for eligibility for a new
14   franchise.  A franchisee determined to be ineligible
15   pursuant to this paragraph shall be afforded the
16   opportunity to seek compensation pursuant to the
17   formal procedure established under paragraph "d",
18   subparagraph (2).  Such procedure shall be the
19   franchisee's exclusive remedy.
20     d.  The franchisor has established both of the
21   following:
22     (1)  A formal procedure for hearing and acting upon
23   claims by an existing franchisee with regard to a
24   decision by the franchisor to develop, or grant to a
25   franchisee the right to develop, a new outlet or
26   location, prior to the opening of the new outlet or
27   location.
28     (2)  A reasonable formal procedure for awarding
29   compensation or other form of consideration to a
30   franchisee to offset all or a portion of the
31   franchisee's lost profits caused by the establishment
32   of the new outlet or location.  The procedure shall
33   involve, at the option of the franchisee, one of the
34   following:
35     (a)  A panel, comprised of an equal number of
36   members selected by the franchisee and the franchisor,
37   and one additional member to be selected unanimously
38   by the members selected by the franchisee and the
39   franchisor.
40     (b)  A neutral third-party mediator or an
41   arbitrator with the authority to make a decision or
42   award in accordance with the formal procedure.  The
43   procedure shall be deemed reasonable if approved by a
44   majority of the franchisor's franchisees in the United
45   States, either individually or by an elected
46   representative body.
47     (c)  Arbitration of any dispute before neutral
48   arbitrators pursuant to the rules of the American
49   arbitration association.  The award of an arbitrator
50   pursuant to this subparagraph subdivision is subject

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/02000/02058.html
jhf