Notwithstanding the terms, provisions or conditions of a distributor franchise, the following shall not constitute good cause for the termination or refusal to renew a distributor franchise:
 1. The sole fact that the franchiser desires further penetration of the market.

Terms Used In Iowa Code 323.6

  • Distributor: means distributor as defined in section 452A. See Iowa Code 323.1
  • Distributor franchise: means a written agreement or contract, either written or oral, between a franchiser and a distributor when all of the following conditions are included:
     a. See Iowa Code 323.1
  • following: when used by way of reference to a chapter or other part of a statute mean the next preceding or next following chapter or other part. See Iowa Code 4.1
  • Franchiser: means a person who is engaged in the importation, refining or distribution of motor fuel or special fuel and who has entered into a distributor franchise or a dealer franchise. See Iowa Code 323.1
 2. The change of executive management of the distributor, unless the franchiser, having the burden of proof, proves that the change of executive management will be substantially detrimental to the distribution of the franchiser’s motor fuels or special fuels in the area served by the distributor.
 3. The sale or change of ownership of the distributor’s business.
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