§2803 Trial and interim franchises

Summary

A franchisor can choose not to renew certain short-term franchise agreements if they follow the notice rules in section 2804. A "trial franchise" is a written deal made on or after June 19, 1978 with a person who has not before had a franchise from that franchisor, lasts no more than 1 year, and clearly says it is a trial, shows the initial term, tells the franchisee the franchisor may not renew by giving the section 2804 notice, and says the usual limits of section 2802 do not apply. An "interim franchise" is a written deal made on or after June 19, 1978 whose length plus any earlier interim terms between the same parties does not exceed 3 years, and which begins right after a prior franchise at the same location was not renewed for the reasons in section 2802(b)(2)(E) and when that rule’s requirements were met. The interim agreement must say it is interim, state its length, and say the franchisor may not renew at the end if it, in good faith, is withdrawing from selling motor fuel in that local market and the conditions in section 2802(b)(2)(E)(ii) and (iii) are met. If the section 2804 notice rules are met, the franchisor may refuse to renew a trial at the end of its initial term or an interim at the end of its term when these conditions apply.