Notwithstanding § 47-25-1502(4), the following circumstances shall not be deemed to constitute “good cause”:

(1) Failure of a franchisee to meet a quota of sales or purchases, whether such quota is expressed as a goal, a quota or otherwise;

Terms Used In Tennessee Code 47-25-1506

  • Contract: A legal written agreement that becomes binding when signed.
  • 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
(2) The desire of the franchisor to consolidate its franchises or its distribution pattern without demonstrating a failure of the franchisee to effectively market or distribute its product;
(3) The failure of the franchisee to comply with a provision of a contract which is prohibited or invalid under the laws of Tennessee;
(4) The failure of the franchisee to comply with a provision of a contract or request of the franchisor which would cause the franchisee to violate any regulation of a regulatory body, or which could reasonably cause a franchisee to jeopardize any license or permit necessary for it to conduct its business; or
(5) The loss of the franchisee’s right to occupy the premises from which the franchise business is operated, if such loss is directly or indirectly caused by the franchisor or any entity related to or affiliated with the franchisor.
  Previous section
Next section  
 Part 15 Contents