30-14-227. Transfer or sale of a franchise -- continuance of contracts.
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30-14-227 . Transfer or sale of a franchise -- continuance of contracts.
(1)Unless otherwise prohibited under a franchise agreement and in the event of a transfer between a franchisee and a third party, the franchisor may not unilaterally alter existing contracts between the franchisor and the franchisee and the transferee. A violation of this section constitutes an unfair trade practice subject to a $10,000 fine for each violation.
(2)This section does not apply to:
(a)motorsports dealer contracts under Title 30, chapter 14, part 25;
(b)new motor vehicle franchise agreements under Title 61, chapter 4; or
(c)farm implement dealership agreements under Title 30, chapter 11.
(3)For the purposes of this section, "franchise agreement" means a contract or agreement by which:
(a)a franchisee is granted the right to engage in business under a marketing plan prescribed in substantial part by the franchisor;
(b)the operation of the franchisee's business is substantially associated with the franchisor's trademark, trade name, logotype, or other commercial symbol or advertising designating the franchisor; and
(c)the franchisee is required to pay, directly or indirectly, a fee for the right to operate under the agreement.