323.7  Department's guidelines.

In determining whether good cause has been established for terminating or not renewing a distributor franchise or dealer franchise, the department shall take into consideration the existing circumstances, including, but not limited to:

1.  Amount of business transacted by the distributor or dealer.

2.  Investments made and obligations incurred by the distributor or dealer in performance of the franchise.

3.  Permanency of the investment.

4.  Whether it is injurious to the public welfare for the business of the distributor or dealer to be disrupted.

5.  Ability of the distributor or dealer to timely pay financial obligations.

6.  Whether the distributor or dealer has adequate equipment and qualified personnel to reasonably provide for the distribution and marketing of the motor fuel or special fuel sold to the distributor or dealer.

7.  Except as provided in section 323.6, failure of the distributor to substantially comply with those requirements of the distributor franchise that are determined by the department to be reasonable and material.

8.  Failure of the dealer to substantially comply with those requirements of the dealer franchise that are determined by the department to be reasonable and material.

Section History: Early form

  [C75, 77, 79, 81, § 323.7]


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