RS 51:1453

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RS 51:1453

§1453. Notification required; prohibited conduct

A. A refiner or retailer shall not cancel or fail to renew a franchise unless he furnishes notice of intent to the other party. Such notice of intent shall be in writing and sent to such party by certified mail not less than ninety days prior to the date on which such franchise will be canceled or not renewed.

Provided, however, that

(1)where, and to the extent that a franchise or other related agreement provides that it may be cancelled for criminal misconduct related to the premises; violation of law related to the premises; fraud; failure to pay taxes and obtain and maintain all licenses, permits, and other authority necessary to conduct business pursuant to the franchise; extension of credit in violation of the provisions of a franchise or other related agreement; expropriation, appropriation, condemnation, or other taking, in whole or in part, of, or damage to, the premises covered by the franchise pursuant to the power of eminent domain; or for other public purpose; abandonment, vacancy, closure, or unattendance of the premises covered by the franchise in excess of the period specified in the franchise; bankruptcy, insolvency, or filing of a petition for an arrangement under the Bankruptcy Act; alienation, transfer, subletting, assignment, pledge, or encumbrance of the franchise or of property covered by the franchise; attachment, garnishment, execution, or other legal process or proceedings levied against the franchise or property covered by the franchise; adulteration or misrepresentation of products; death or incapacity of a natural person, or termination or dissolution of a partnership or corporation; loss by the refiner of its legal right to grant a retailer possession of leased premises which are the subject of a franchise; force majeure; governmental regulations; inability or impracticability of performance; or the non-payment of sums due under the franchise; and

(2)one or more of the foregoing constitute the grounds for cancellation or nonrenewal of a franchise, the notice provisions of this section shall not apply. Such notice given by certified mail shall be effective on the date of mailing. Such notice of intent shall contain in the case of cancellation a statement of intention to cancel, together with the reasons therefor, and the date on which such action shall take effect. In the case of nonrenewal, such notice shall recite the date on which such franchise term expires.

B. A refiner or retailer shall not cancel a franchise during the stated term of any franchise unless the party whose franchise is attempted to be canceled has failed to comply with any essential and reasonable requirement of such franchise, or has failed to comply substantially with any other condition, provision or stipulation of the franchise, unless the grounds for cancellation are such which do not require notice pursuant to Subsection A of this section, or unless the cancellation is otherwise authorized by other laws of this state, or unless such refiner or retailer withdraws entirely from the sale of motor gasoline in this state, or unless the parties mutually consent to the cancellation in writing.

Added by Acts 1974, No. 628, §1.