§ 2803. — Trial and interim franchises.
[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
January 24, 2002 and December 19, 2002]
[CITE: 15USC2803]
TITLE 15--COMMERCE AND TRADE
CHAPTER 55--PETROLEUM MARKETING PRACTICES
SUBCHAPTER I--FRANCHISE PROTECTION
Sec. 2803. Trial and interim franchises
(a) Nonapplicability of statutory nonrenewal provisions
The provisions of section 2802 of this title shall not apply to the
nonrenewal of any franchise relationship--
(1) under a trial franchise; or
(2) under an interim franchise.
(b) Definitions
For purposes of this section--
(1) The term ``trial franchise'' means any franchise--
(A) which is entered into on or after June 19, 1978;
(B) the franchisee of which has not previously been a party
to a franchise with the franchisor;
(C) the initial term of which is for a period of not more
than 1 year; and
(D) which is in writing and states clearly and
conspicuously--
(i) that the franchise is a trial franchise;
(ii) the duration of the initial term of the franchise;
(iii) that the franchisor may fail to renew the
franchise relationship at the conclusion of the initial term
stated in the franchise by notifying the franchisee, in
accordance with the provisions of section 2804 of this
title, of the franchisor's intention not to renew the
franchise relationship; and
(iv) that the provisions of section 2802 of this title,
limiting the right of a franchisor to fail to renew a
franchise relationship, are not applicable to such trial
franchise.
(2) The term ``trial franchise'' does not include any unexpired
period of any term of any franchise (other than a trial franchise,
as defined by paragraph (1)) which was transferred or assigned by a
franchisee to the extent authorized by the provisions of the
franchise or any applicable provision of State law which permits
such transfer or assignment, without regard to any provision of the
franchise.
(3) The term ``interim franchise'' means any franchise--
(A) which is entered into on or after June 19, 1978;
(B) the term of which, when combined with the terms of all
prior interim franchises between the franchisor and the
franchisee, does not exceed 3 years;
(C) the effective date of which occurs immediately after the
expiration of a prior franchise, applicable to the marketing
premises, which was not renewed if such nonrenewal--
(i) was based upon a determination described in section
2802(b)(2)(E) of this title, and
(ii) the requirements of section 2802(b)(2)(E) of this
title were satisfied; and
(D) which is in writing and states clearly and
conspicuously--
(i) that the franchise is an interim franchise;
(ii) the duration of the franchise; and
(iii) that the franchisor may fail to renew the
franchise at the conclusion of the term stated in the
franchise based upon a determination made by the franchisor
in good faith and in the normal course of business to
withdraw from the marketing of motor fuel through retail
outlets in the relevant geographic market area in which the
marketing premises are located if the requirements of
section 2802(b)(2)(E)(ii) and (iii) of this title are
satisfied.
(c) Nonrenewal upon meeting statutory notification requirements
If the notification requirements of section 2804 of this title are
met, any franchisor may fail to renew any franchise relationship--
(1) under any trial franchise, at the conclusion of the initial
term of such trial franchise; and
(2) under any interim franchise, at the conclusion of the term
of such interim franchise, if--
(A) such nonrenewal is based upon a determination described
in section 2802(b)(2)(E) of this title; and
(B) the requirements of section 2802(b)(2)(E)(ii) and (iii)
of this title are satisfied.
(Pub. L. 95-297, title I, Sec. 103, June 19, 1978, 92 Stat. 328.)
Section Referred to in Other Sections
This section is referred to in sections 2802, 2804, 2805 of this
title.
