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 653: Tuesday, March 18, 1997

H-1165

 1     Amend House File 334 as follows:
 2     1.  Page 3, by inserting after line 14 the
 3   following:
 4     "6.  a.  A franchisee may transfer the franchised
 5   business and franchise to a transferee, provided that
 6   the transferee satisfies the reasonable current
 7   qualifications of the franchisor for new franchisees.
 8   For the purposes of this subsection, a reasonable
 9   current qualification for a new franchisee is a
10   qualification based upon a legitimate business reason.
11   If the proposed transferee does not meet the
12   reasonable current qualifications of the franchisor,
13   the franchisor may refuse to permit the transfer,
14   provided that the refusal of the franchisor to consent
15   to the transfer is not arbitrary or capricious.
16     b.  Except as otherwise provided in this
17   subsection, a franchisor may exercise a right of first
18   refusal contained in a franchise agreement after
19   receipt of a proposal from the franchisee to transfer
20   the franchise.
21     c.  A franchisor may require as a condition of a
22   transfer any of the following:
23     (1)  That the transferee successfully complete a
24   reasonable training program.
25     (2)  That a reasonable transfer fee be paid to
26   reimburse the franchisor for the franchisor's
27   reasonable and actual expenses directly attributable
28   to the transfer.
29     (3)  That the franchisee pay or make provision
30   reasonably acceptable to the franchisor to pay any
31   amount due the franchisor or the franchisor's
32   affiliate.
33     (4)  That the financial terms of the transfer
34   comply at the time of the transfer with the
35   franchisor's current financial requirements for
36   franchisees.
37     d.  A franchisee may transfer the franchisee's
38   interest in the franchise, for the unexpired term of
39   the franchise agreement, and a franchisor shall not
40   require the franchisee or the transferee to enter into
41   a new or different franchise agreement as a condition
42   of the transfer.
43     e.  A franchisee shall give the franchisor no less
44   than sixty days' written notice of a transfer which is
45   subject to the provisions of this subsection, and on
46   request from the franchisor shall provide in writing
47   the ownership interests of all persons holding or
48   claiming an equitable or beneficial interest in the
49   franchise subsequent to the transfer or the
50   franchisee, as appropriate.  A franchisee shall not

Iowa General Assembly

Index: House Journal (77th General Assembly: Session 1)

© 1997 Cornell College and League of Women Voters of Iowa

Comments about this site or page? hjourn@legis.iowa.gov. Please remember that the person listed above does not vote on bills. Direct all comments concerning legislation to State Legislators.

Last update: Wed Mar 19 13:40:03 CST 1997
URL: /DOCS/GA/77GA/Session.1/HJournal/00600/00653.html
jhf