Modification of franchise prohibited, when
A franchisor (the company that gives someone the right to run a franchise, like a car dealership) cannot make big changes to a franchise deal that would seriously hurt the franchisee (the person running the franchise) without giving 90 days written notice first. If the franchisee disagrees with the change, they can file a complaint with a special government hearing board, which will decide if the change is fair and legal. The change cannot happen until that board makes its decision.
407.833. of prohibited, when — procedure with , written decision required. — 1. the term of any franchise to the contrary, a shall not a franchise during the term of the franchise or upon its renewal if the modification substantially and adversely affects the 's rights, obligations, investment, or on investment without giving ninety days written notice of the proposed modification to the franchisee unless the modification is required by law or . Within the ninety-day notice period the franchisee may file with the administrative hearing commission and serve upon the franchisor a complaint for a of whether there is for permitting the proposed modification and whether the proposed modification violates any of the . The administrative hearing commission shall promptly a and decide the matter. Multiple complaints pertaining to the same proposed franchise modification shall be for hearing. The proposed franchise modification shall not take effect pending the determination of the matter.
2. The shall be on the franchisor, except that the burden of proof with regard to the factor set forth in (3) of this shall be on the franchisee, and the administrative hearing commission may consider any relevant factor including:
(1) The reasons for the proposed modification;
(2) Whether the proposed modification is applied to or affects all franchisees in a ;
(3) The degree to which the proposed modification will have a substantial and adverse effect upon the franchisee's rights, investment, or return on investment;
(4) Whether the proposed modification is in the public interest;
(5) The degree to which the proposed modification is necessary to the ly and profitable distribution of products by the franchisor;
(6) Whether the proposed modification is by other modifications beneficial to the franchisee;
(7) Whether the proposed modification violates any provision of the MVFP act.
3. The decision of the administrative hearing commission shall be in writing and shall contain and a determination of whether there is good cause for permitting the proposed modification and whether the proposed modification violates any provision of the MVFP act. The administrative hearing commission shall copies of the decision to the parties personally or by . If the administrative hearing commission that there is not good cause for permitting the proposed modification or that the proposed modification violates any provision of the MVFP act, then the franchisor shall not proceed with the proposed modification.
4. For purposes of this section, the term "modification" includes, but is not limited to, any change, amendment, supplement, deletion, addition, or replacement of any provision of the franchise.
Tap any gold-underlined word to see what it means.
Source & history notes
(L. 2010 H.B. 2198)
Legal information, not legal advice. Always confirm with the official source at revisor.mo.gov.