§2803 Trial and Interim Franchises

Summary

A franchisor can choose not to renew a trial or interim franchise, and the limits in section 2802 do not apply to those nonrenewals. A "trial franchise" is a written franchise made on or after June 19, 1978, where the buyer has not previously had a franchise with that franchisor, the first term is no more than 1 year, and the paper plainly says it is a trial, how long it lasts, that the franchisor can give the notice required under section 2804 to end it, and that section 2802’s limits do not apply. A trial franchise does not include a remaining period of a non-trial franchise that was legally transferred or assigned. An "interim franchise" is a written franchise made on or after June 19, 1978, whose total time with earlier interim agreements does not exceed 3 years, which starts right after a prior franchise was not renewed for the reason described in section 2802(b)(2)(E) with that rule’s conditions met, and which plainly says it is interim, its length, and that the franchisor may not renew it if, in good faith and in the normal course of business, the franchisor decides to stop selling motor fuel in that market and the requirements in section 2802(b)(2)(E)(ii) and (iii) are satisfied. If the notice rules in section 2804 are followed, a franchisor may decline to renew a trial at the end of its initial term and may decline to renew an interim at the end of its term when the conditions just described are met.