§2806 — Title 15 Commerce and Trade | U.S. Code

Summary

States and local governments must follow the federal rules about ending a franchise, not renewing a franchise, and giving notice about those actions. They cannot make different rules or penalties for those same things. States also cannot require a payment for a franchise owner's goodwill when a franchise ends or is not renewed. The federal law does not itself allow or block transfers of franchises; transfers follow the franchise agreement or state law. A state can set rules for passing a franchise to a named successor if the owner dies.

Title 15, §2806

Commerce and Trade — Source: USLM XML via OLRC

(a)(1)To the extent that any provision of this subchapter applies to the termination (or the furnishing of notification with respect thereto) of any franchise, or to the nonrenewal (or the furnishing of notification with respect thereto) of any franchise relationship, no State or any political subdivision thereof may adopt, enforce, or continue in effect any provision of any law or regulation (including any remedy or penalty applicable to any violation thereof) with respect to termination (or the furnishing of notification with respect thereto) of any such franchise or to the nonrenewal (or the furnishing of notification with respect thereto) of any such franchise relationship unless such provision of such law or regulation is the same as the applicable provision of this subchapter.

(2)No State or political subdivision of a State may adopt, enforce, or continue in effect any provision of law (including a regulation) that requires a payment for the goodwill of a franchisee on the termination of a franchise or nonrenewal of a franchise relationship authorized by this subchapter.

(b)(1)Nothing in this subchapter authorizes any transfer or assignment of any franchise or prohibits any transfer or assignment of any franchise as authorized by the provisions of such franchise or by any applicable provision of State law which permits such transfer or assignment without regard to any provision of the franchise.

(2)Nothing in this subchapter shall prohibit any State from specifying the terms and conditions under which any franchise or franchise relationship may be transferred to the designated successor of a franchisee upon the death of the franchisee.

Editorial Notes

Amendments

1994—Subsec. (a). Pub. L. 103–371, § 5(1), redesignated existing provisions as par. (1) and added par. (2). Subsec. (b). Pub. L. 103–371, § 5(2), redesignated existing provisions as par. (1) and added par. (2).

§2806 Relationship of Statutory Provisions to State and Local Laws

Summary

Title 15, §2806

Notes & Related Subsidiaries

Editorial Notes

Amendments

Citations & Metadata