§ 2804. — Notification of termination or nonrenewal of franchise relationship.
[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
January 24, 2002 and December 19, 2002]
[CITE: 15USC2804]
TITLE 15--COMMERCE AND TRADE
CHAPTER 55--PETROLEUM MARKETING PRACTICES
SUBCHAPTER I--FRANCHISE PROTECTION
Sec. 2804. Notification of termination or nonrenewal of
franchise relationship
(a) General requirements applicable to franchisor
Prior to termination of any franchise or nonrenewal of any franchise
relationship, the franchisor shall furnish notification of such
termination or such nonrenewal to the franchisee who is a party to such
franchise or such franchise relationship--
(1) in the manner described in subsection (c) of this section;
and
(2) except as provided in subsection (b) of this section, not
less than 90 days prior to the date on which such termination or
nonrenewal takes effect.
(b) Additional requirements applicable to franchisor
(1) In circumstances in which it would not be reasonable for the
franchisor to furnish notification, not less than 90 days prior to the
date on which termination or nonrenewal takes effect, as required by
subsection (a)(2) of this section--
(A) such franchisor shall furnish notification to the franchisee
affected thereby on the earliest date on which furnishing of such
notification is reasonably practicable; and
(B) in the case of leased marketing premises, such franchisor--
(i) may not establish a new franchise relationship with
respect to such premises before the expiration of the 30-day
period which begins--
(I) on the date notification was posted or personally
delivered, or
(II) if later, on the date on which such termination or
nonrenewal takes effect; and
(ii) may, if permitted to do so by the franchise agreement,
repossess such premises and, in circumstances under which it
would be reasonable to do so, operate such premises through
employees or agents.
(2) In the case of any termination of any franchise or any
nonrenewal of any franchise relationship pursuant to the provisions of
section 2802(b)(2)(E) of this title or section 2803(c)(2) of this title,
the franchisor shall--
(A) furnish notification to the franchisee not less than 180
days prior to the date on which such termination or nonrenewal takes
effect; and
(B) promptly provide a copy of such notification, together with
a plan describing the schedule and conditions under which the
franchisor will withdraw from the marketing of motor fuel through
retail outlets in the relevant geographic area, to the Governor of
each State which contains a portion of such area.
(c) Manner and form of notification
Notification under this section--
(1) shall be in writing;
(2) shall be posted by certified mail or personally delivered to
the franchisee; and
(3) shall contain--
(A) a statement of intention to terminate the franchise or
not to renew the franchise relationship, together with the
reasons therefor;
(B) the date on which such termination or nonrenewal takes
effect; and
(C) the summary statement prepared under subsection (d) of
this section.
(d) Preparation, publication, etc., of statutory summaries
(1) Not later than 30 days after June 19, 1978, the Secretary of
Energy shall prepare and publish in the Federal Register a simple and
concise summary of the provisions of this subchapter, including a
statement of the respective responsibilities of, and the remedies and
relief available to, any franchisor and franchisee under this
subchapter.
(2) In the case of summaries required to be furnished under the
provisions of section 2802(b)(2)(D) of this title or subsection
(c)(3)(C) of this section before the date of publication of such summary
in the Federal Register, such summary may be furnished not later than 5
days after it is so published rather than at the time required under
such provisions.
(Pub. L. 95-297, title I, Sec. 104, June 19, 1978, 92 Stat. 329.)
Section Referred to in Other Sections
This section is referred to in sections 2802, 2803, 2805 of this
title.
