Iowa Code 523H.11 – Repurchase of assets
Current as of: 2023 | Check for updates
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Terms Used In Iowa Code 523H.11
- Assets: (1) The property comprising the estate of a deceased person, or (2) the property in a trust account.
- Fair market value: The price at which an asset would change hands in a transaction between a willing, informed buyer and a willing, informed seller.
- Franchise: means either of the following:(1) An oral or written agreement, either express or implied, which provides all of the following:(a) Grants the right to distribute goods or provide services under a marketing plan prescribed or suggested in substantial part by the franchisor. See Iowa Code 523H.1
- Franchisee: means a person to whom a franchise is granted. See Iowa Code 523H.1
- Franchisor: means a person who grants a franchise or master franchise, or an affiliate of such a person. See Iowa Code 523H.1
A franchisor shall not prohibit a franchisee from, or enforce a prohibition against a franchisee, engaging in any lawful business at any location after a termination or refusal to renew by a franchisor, unless it is one which relies on a substantially similar marketing program as the terminated or nonrenewed franchise or unless the franchisor offers in writing no later than ten business days before expiration of the franchise to purchase the assets of the franchised business for its fair market value as a going concern. The value of the assets shall not include the goodwill of the business attributable to the trademark licensed to the franchisee in the franchise agreement. The offer may be conditioned upon the ascertainment of a fair market value by an impartial appraiser. This section does not apply to assets of the franchised business which the franchisee did not purchase from the franchisor, or the agent of the franchisor.