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House Journal: Page 657: Tuesday, March 18, 1997

Page 5

 1   creditor which is subject to chapter 681.  An
 2   assignment for the benefit of any creditor pursuant to
 3   this subparagraph does not include the granting of a
 4   security interest in the normal course of business.
 5     (3)  The franchisee voluntarily abandons the
 6   franchise by failing to operate the business for five
 7   consecutive business days during which the franchisee
 8   is required to operate the business under the terms of
 9   the franchise, or any shorter period after which it is
10   not unreasonable under the facts and circumstances for
11   the franchisor to conclude that the franchisee does
12   not intend to continue to operate the franchise,
13   unless the failure to operate is due to circumstances
14   beyond the control of the franchisee.
15     (4)  The franchisor and franchisee agree in writing
16   to terminate the franchise.
17     (5)  The franchisee knowingly makes any material
18   misrepresentations or knowingly omits to state any
19   material facts relating to the acquisition or
20   ownership or operation of the franchise business.
21     (6)  After three material breaches of a franchise
22   agreement occurring within a twelve-month period, for
23   which the franchisee has been given notice and an
24   opportunity to cure, the franchisor may terminate upon
25   any subsequent material breach within the twelve-month
26   period without providing an opportunity to cure,
27   provided that the action is not arbitrary and
28   capricious.
29     (7)  The franchised business or business premises
30   of the franchisee are lawfully seized, taken over, or
31   foreclosed by a government authority or official.
32     (8)  The franchisee is convicted of a felony or any
33   other criminal misconduct which materially and
34   adversely affects the operation, maintenance, or
35   goodwill of the franchise in the relevant market.
36     (9)  The franchisee operates the franchised
37   business in a manner that imminently endangers the
38   public health and safety.
39     8.  a.  A franchisor shall not refuse to renew a
40   franchise unless both of the following apply:
41     (1)  The franchisee has been notified of the
42   franchisor's intent not to renew at least six months
43   prior to the expiration date or any extension of the
44   franchise agreement.
45     (2)  Any of the following circumstances exist:
46     (a)  Good cause exists, provided that the refusal
47   of the franchisor to renew is not arbitrary or
48   capricious.  For purposes of this subsection, "good
49   cause" means cause based on a legitimate business
50   reason.

Iowa General Assembly

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

© 1997 Cornell College and League of Women Voters of Iowa

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