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House Journal: Page 687: Wednesday, March 13, 1996

House File 2235, a bill for an act relating to certain franchise
agreements by amending provisions relating to the definition of
a franchise, and applicability, transfer, encroachment,
termination, nonrenewal, repurchase of assets, independent
sourcing, and enforcement, was taken up for consideration.
The House stood at ease at 10:05 a.m., until the fall of the
gavel.
The House resumed session at  10:53 a.m., Speaker pro tempore
Van Maanen of Marion in the chair.
Dinkla of Guthrie offered amendment H-5260 filed by him as
follows:

H-5260

 1     Amend House File 2235 as follows:
 2     1.  By striking everything after the enacting
 3   clause and inserting the following:
 4     "Section 1.  Section 523H.5, subsections 3, 4, 5,
 5   and 7, Code Supplement 1995, are amended to read as
 6   follows:
 7     3.  A franchisor may require as a condition of a
 8   transfer any of the following:
 9     a.  That the transferee successfully complete a
10   reasonable at the time of the transfer the
11   franchisor's current training program required of
new
12   franchisees.
13     b.  That a reasonable transfer fee be paid to
14   reimburse the franchisor for the franchisor's
15   reasonable and actual expenses directly attributable
16   to the transfer.
17     c.  That the franchisee pay or make provision
18   reasonably provisions acceptable to the franchisor
to
19   pay any amount due the franchisor or the franchisor's
20   affiliate.
21     d.  That the financial terms of the transfer comply
22   at the time of the transfer with the franchisor's
23   current financial requirements for franchisees.
24     4.  A If a franchisee may transfer
transfers t he
25   franchisee's interest in the franchise, for the
26   unexpired term of the franchise agreement, and a
27   franchisor shall not require the franchisee or the
28   transferee to enter into a new or different franchise
29   agreement as a condition of the transfer.
30     5.  A franchisee shall give the franchisor no less
31   than sixty days' written notice of a transfer which is
32   subject to the provisions of this section, and on
33   request from the franchisor shall provide in writing
34   the ownership interests of all persons holding or
35   claiming an equitable or beneficial interest in the
36   franchise subsequent to the transfer or the
37   franchisee, as appropriate.  A franchisee shall not
38   circumvent the intended effect of a contractual
39   provision governing the transfer of the franchise or

Iowa General Assembly

Index: House Journal (76th General Assembly: Session 2)

© 1996 Cornell College and League of Women Voters of Iowa

Comments? hjourn@legis.iowa.gov.

Last update: Thu Mar 14 13:30:03 CST 1996
URL: /DOCS/GA/76GA/Session.2/HJournal/00600/00687.html
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