§ 51:1452 — Definitions

As used in this section:
(1) The term "refiner" means a person or other legal entity engaged in the refining or importing of petroleum products.
(2) The term "retailer" means a person or other legal entity engaged in the retail sale of motor gasoline who operates under a franchise.
(3) The term "franchise" means any agreement or contract between a refiner and a retailer, under which such retailer is granted authority to use a trademark, trade name, service mark, or other identifying symbol or name owned by such refiner, or any agreement or contract between such parties under which such retailer is granted authority to occupy premises owned, leased, or in any way controlled by a party to such agreement or contract, for the purpose of engaging in the sale at retail of motor gasoline.
(4) The term "good faith" shall mean the duty of each party to any franchise, and all officers, employees or agents thereof, to act in a fair and equitable manner toward each other so as to guarantee the one party freedom from coercion, intimidation, or threats of coercion or intimidation from the other party; provided, that recommendation, endorsement, exposition, urging or argument shall not be deemed to constitute a lack of good faith.
(5) "Essential and reasonable requirement" shall mean a reasonable condition, provision, or stipulation in the franchise agreement which is of sufficient importance to require strict compliance therewith. There shall be a rebuttable presumption that it is not an "essential and reasonable requirement" to require a retailer to operate more than seventy-two hours per week.
(6) "Direct operated outlet" shall mean a retail outlet operated by a refiner, its employees or agents. Retail outlets operated by a refiner, its employees or agents on a temporary basis not to exceed ninety days shall not be considered a direct operated outlet for the purposes of this Chapter.
(7) The term "goodwill" shall mean whatever value, if any, is added to the service station business of the retailer by the retail sale of petroleum products and related automobile services and repairs during the term of a franchise, and of any preceding franchises between the same parties, covering the same premises, solely by virtue of the efforts of the retailer and his employees, over and above any and all value contributed by the premises, by the trademark, trade name, service mark or other identifying symbol or name owned by such refiner, by advertising furnished or paid for by the refiner, or by any other property of the refiner, or by any other cause or factor whatsoever, which value can reasonably be expected to remain with the premises after the departure of the retailer.
(8) The terms "cancel a franchise", "cancellation of a franchise", "cancel a franchise during the stated term of any franchise" and similar combinations of such words, shall mean the dissolution of a franchise prior to the expiration of its term, but shall not include the exercise of a right to put an end to a franchise, which otherwise would be renewed automatically for a fixed period, such as a month to month or a year to year franchise, by notice within a specified time prior to the expiration of any such period, provided such notice shall be not less than ninety days, as required in R.S. 51:1453B. For purposes of this Act the exercise of any such right to prevent automatic renewal shall constitute a "failure to renew a franchise."

Legislative History

Added by Acts 1974, No. 628, §1.