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House Journal: Page 658: Tuesday, March 18, 1997

Page 6

 1     (b)  The franchisor and franchisee agree not to
 2   renew the franchise.
 3     (c)  The franchisor completely withdraws from
 4   directly or indirectly distributing its products or
 5   services in the geographic market served by the
 6   franchisee, provided that upon expiration of the
 7   franchise, the franchisor agrees not to seek to
 8   enforce any covenant of the nonrenewed franchisee not
 9   to compete with the franchisor or franchisees of the
10   franchisor.
11     b.  As a condition of renewal of the franchise, a
12   franchise agreement may require that the franchisee
13   meet the then current requirements for franchises and
14   that the franchisee execute a new agreement
15   incorporating the then current terms and fees for new
16   franchises.
17     9.  A franchisor shall not restrict a franchisee
18   from associating with other franchisees or from
19   participating in a trade association, and shall not
20   retaliate against a franchisee for engaging in these
21   activities.
22     10.  A franchisor shall not prohibit a franchisee
23   from, or enforce a prohibition against a franchisee,
24   engaging in any lawful business at any location after
25   a termination or refusal to renew by a franchisor,
26   unless it is one which relies on a substantially
27   similar marketing program as the terminated or
28   nonrenewed franchise or unless the franchisor offers
29   in writing no later than ten business days before
30   expiration of the franchise to purchase the assets of
31   the franchised business for its fair market value as a
32   going concern.  The value of the assets shall not
33   include the goodwill of the business attributable to
34   the trademark licensed to the franchisee in the
35   franchise agreement.  The offer may be conditioned
36   upon the ascertainment of a fair market value by an
37   impartial appraiser.  This subsection does not apply
38   to assets of the franchised business which the
39   franchisee did not purchase from the franchisor, or
40   the agent of the franchisor.
41     11.  a.  Except as provided in paragraph "b", a
42   franchisor shall allow a franchisee to obtain
43   equipment, fixtures, supplies, and services used in
44   the establishment and operation of the franchised
45   business from sources of the franchisee's choosing,
46   provided that such goods and services meet standards
47   as to their nature and quality promulgated by the
48   franchisor.
49     b.  Paragraph "a" does not apply to reasonable
50   quantities of inventory goods or services, including

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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