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House Amendment 1187

Amendment Text

PAG LIN
  1  1    Amend House File 334 as follows:
  1  2    #1.  Page 3, by inserting after line 14 the
  1  3 following:
  1  4    "6.  a.  A franchisor shall not refuse to renew a
  1  5 franchise unless both of the following apply:
  1  6    (1)  The franchisee has been notified of the
  1  7 franchisor's intent not to renew at least six months
  1  8 prior to the expiration date or any extension of the
  1  9 franchise agreement.
  1 10    (2)  Any of the following circumstances exist:
  1 11    (a)  Good cause exists, provided that the refusal
  1 12 of the franchisor to renew is not arbitrary or
  1 13 capricious.  For purposes of this subsection, "good
  1 14 cause" means cause based on a legitimate business
  1 15 reason.
  1 16    (b)  The franchisor and franchisee agree not to
  1 17 renew the franchise.
  1 18    (c)  The franchisor completely withdraws from
  1 19 directly or indirectly distributing its products or
  1 20 services in the geographic market served by the
  1 21 franchisee, provided that upon expiration of the
  1 22 franchise, the franchisor agrees not to seek to
  1 23 enforce any covenant of the nonrenewed franchisee not
  1 24 to compete with the franchisor or franchisees of the
  1 25 franchisor.
  1 26    b.  As a condition of renewal of the franchise, a
  1 27 franchise agreement may require that the franchisee
  1 28 meet the then current requirements for franchises and
  1 29 that the franchisee execute a new agreement
  1 30 incorporating the then current terms and fees for new
  1 31 franchises." 
  1 32 
  1 33 
  1 34                               
  1 35 WEIGEL of Chickasaw
  1 36 HF 334.504 77
  1 37 mj/jw/28
     
Text: H01186                            Text: H01188
Text: H01100 - H01199                   Text: H Index
Bills and Amendments: General Index     Bill History: General Index
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