Title 15 — Commerce and TradeRelease 119-73not60

§2804 Notification of Termination or Nonrenewal of Franchise Relationship

Title 15 › Chapter 55— PETROLEUM MARKETING PRACTICES › Subchapter I— FRANCHISE PROTECTION › § 2804

Last updated Apr 3, 2026|Official source

Summary

A company that owns a franchise must tell the franchise owner before it ends the franchise or decides not to renew it. The notice must normally be given at least 90 days before the end date. If giving 90 days’ notice would not be reasonable, the company must notify the franchise owner as soon as it is reasonably practical. For leased retail fuel sites, the company cannot set up a new franchise for that location until a 30-day period ends that starts when the notice was mailed or handed over (or, if later, when the termination actually takes effect). If the lease allows it and it is reasonable, the company may take back and run the premises with its own staff or agents. The notice must be written and sent by certified mail or given in person. It must say the company’s plan to end or not renew the franchise and why, give the date the change takes effect, and include a short summary prepared by the Secretary of Energy. For certain large withdrawals of fuel marketing under specified rules, the company must give 180 days’ notice and quickly send a copy of the notice plus a withdrawal plan to the governor of each state affected. The Secretary of Energy had to publish the required plain summary in the Federal Register within 30 days after June 19, 1978; if that summary was not yet published when a notice was to be given, the summary could be provided within 5 days after publication.

Full Legal Text

Title 15, §2804

Commerce and Trade — Source: USLM XML via OLRC

(a)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); and

(2)except as provided in subsection (b), not less than 90 days prior to the date on which such termination or nonrenewal takes effect.

(b)(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)—

(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)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).

(d)(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.

Reference

Citations & Metadata

Citation

15 U.S.C. § 2804

Title 15 — Commerce and Trade

Last Updated

Apr 3, 2026

Release point: 119-73not60