(a) Except as otherwise provided by this part, no franchisor may terminate a franchise prior to the expiration of its term, except for good cause asserted in good faith, nor may a franchisor terminate a franchise prior to the expiration of its term without providing written notice of the facts and circumstances establishing good cause, and giving the franchisee a reasonable opportunity of at least thirty (30) days to cure the alleged failure.

Terms Used In Tennessee Code 47-25-1503

  • Franchise: means a written or oral agreement for a definite or indefinite period, in which a person grants to another person authority to use a trade name, trademark, service mark or related characteristic within an exclusive territory, or to sell or distribute goods or services, within an exclusive territory, at wholesale, retail, by lease agreement or otherwise. See Tennessee Code 47-25-1502
  • Franchisee: means a person to whom a franchise is offered or granted only if such person is required to be licensed under §. See Tennessee Code 47-25-1502
  • Franchisor: means a person who grants a franchise to another person where such person is the holder of a permit issued pursuant to §. See Tennessee Code 47-25-1502
  • Good cause: means :
    (A) Failure by a franchisee to comply substantially with the requirements imposed or sought to be imposed upon the franchisee by the franchisor, which requirements are not discriminatory as compared with the requirements imposed on other similarly situated franchisees, either by their terms or in the manner of their enforcement, and which requirements are not in violation of any law or regulation. See Tennessee Code 47-25-1502
  • Good faith: means honesty in fact in the conduct or transaction concerned. See Tennessee Code 47-25-1502
  • State: when applied to the different parts of the United States, includes the District of Columbia and the several territories of the United States. See Tennessee Code 1-3-105
  • written: includes printing, typewriting, engraving, lithography, and any other mode of representing words and letters. See Tennessee Code 1-3-105
(b) Any franchisor who fails to provide services or products to a franchisee located within this state, which services or products are material to the operation of the franchise, on the same terms, conditions and availability as any other franchisee in this state shall be deemed to have terminated such franchise.
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