Text: H01208 Text: H01210 Text: H01200 - H01299 Text: H Index Bills and Amendments: General Index Bill History: General Index
PAG LIN
1 1 Amend House File 334 as follows:
1 2 #1. By striking everything after the enacting
1 3 clause and inserting the following:
1 4 "Section 1. NEW SECTION. 537A.10 FRANCHISE
1 5 AGREEMENTS.
1 6 1. DEFINITIONS. a. "Franchise" means an oral or
1 7 written agreement, either expressed or implied, which
1 8 provides all of the following:
1 9 (1) Grants the right to distribute goods or
1 10 provide services under a marketing plan prescribed or
1 11 suggested in substantial part by the franchisor.
1 12 (2) Requires payment of a franchise fee to a
1 13 franchisor or its affiliate.
1 14 (3) Allows the franchise business to be
1 15 substantially associated with a trademark, service
1 16 mark, trade name, logotype, advertisement, or other
1 17 commercial symbol of or designating the franchisor or
1 18 its affiliate.
1 19 "Franchise" does not include any business that is
1 20 operated under a lease or license on the premises of
1 21 the lessor or licensor as long as such business is
1 22 incidental to the business conducted by the lessor or
1 23 licensor on such premises, including, without
1 24 limitation, leased departments, licensed departments,
1 25 and concessions, if the leased or licensed department
1 26 operates only under the trademark, trade name, service
1 27 mark, or other commercial symbol designating the
1 28 lessor or licensor.
1 29 "Franchise" also does not include any contract
1 30 under which a petroleum retailer or petroleum
1 31 distributor is authorized or permitted to occupy
1 32 leased marketing premises, which premises are to be
1 33 employed in connection with the sale, consignment, or
1 34 distribution of motor fuel under a trademark owned or
1 35 controlled by a refiner regulated by the federal
1 36 Petroleum Marketing Practices Act, 15 U.S.C. } 2801 et
1 37 seq. "Refiner" means a person engaged in the refining
1 38 of crude oil to produce motor fuel, and includes an
1 39 affiliate of such person. "Franchise" also does not
1 40 include a contract entered into by any person
1 41 regulated under chapter 123, 322, 322A, 322B, 322C,
1 42 322D, 322F, 522, or 543B, or a contract establishing a
1 43 franchise relationship with respect to the sale of
1 44 construction equipment, lawn or garden equipment, or
1 45 real estate.
1 46 b. "Franchise agreement" means an agreement by
1 47 which a franchisor grants a franchise to a franchisee.
1 48 c. "Franchise fee" means a direct or indirect
1 49 payment to purchase or operate a franchise. Franchise
1 50 fee does not include any of the following:
2 1 (1) Payment of a reasonable service charge to the
2 2 issuer of a credit card by an establishment accepting
2 3 the credit card.
2 4 (2) Payment to a trading stamp company by a person
2 5 issuing trading stamps in connection with a retail
2 6 sale.
2 7 (3) An agreement to purchase at a bona fide
2 8 wholesale price a reasonable quantity of tangible
2 9 goods for resale.
2 10 (4) The purchase or agreement to purchase, at a
2 11 fair market value, any fixtures, equipment, leasehold
2 12 improvements, real property, supplies, or other
2 13 materials reasonably necessary to enter into or
2 14 continue a business.
2 15 (5) Payments by a purchaser pursuant to a bona
2 16 fide loan from a seller to the purchaser.
2 17 (6) Payment of rent which reflects payment for the
2 18 economic value of leased real or personal property.
2 19 (7) The purchase or agreement to purchase
2 20 promotional or demonstration supplies, materials, or
2 21 equipment furnished at fair market value and not
2 22 intended for resale.
2 23 d. "Franchisee" means a person to whom a franchise
2 24 is granted.
2 25 e. "Franchisor" means a person who grants a
2 26 franchise.
2 27 2. A franchise agreement shall be deemed to
2 28 include an implied duty of good faith in performance
2 29 and enforcement of the agreement. "Good faith" means
2 30 honesty in fact and the observance of reasonable
2 31 commercial standards of fair dealing in the trade.
2 32 The exercise of rights and the performance of duties
2 33 in the manner expressly authorized or contemplated by
2 34 a franchise agreement is not a breach of this
2 35 subsection.
2 36 3. A franchisor shall establish a formal procedure
2 37 for hearing and acting upon claims by a franchisee and
2 38 for the referral of such claims to one of the
2 39 following:
2 40 a. A neutral arbitrator for arbitration pursuant
2 41 to the rules of the American arbitration association.
2 42 The award of an arbitrator pursuant to this subsection
2 43 is subject to judicial review pursuant to chapter
2 44 679A.
2 45 b. A neutral third-party mediator.
2 46 c. Another dispute resolution mechanism as agreed
2 47 to by the franchisor and franchisee.
2 48 4. A provision in a franchise agreement that
2 49 designates jurisdiction or venue for litigation in a
2 50 forum outside of this state is void.
3 1 5. A condition, stipulation, or provision in a
3 2 franchise agreement requiring the application of the
3 3 law of another state is void.
3 4 Sec. 2. Chapter 523H, Code 1997, is repealed."
3 5 #2. Title page, line 2, by striking the words
3 6 "providing for" and inserting the following:
3 7 "requiring".
3 8
3 9
3 10
3 11 METCALF of Polk
3 12
3 13
3 14
3 15 CHAPMAN of Linn
3 16 HF 334.314 77
3 17 mj/cf/28
Text: H01208 Text: H01210 Text: H01200 - H01299 Text: H Index Bills and Amendments: General Index Bill History: General Index
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