§ 30-14-227 — Transfer Or Sale Of A Franchise -- Continuance Of Contracts

Montana § 30-14-227

• Jurisdiction: Montana
• Title 30: TRADE AND COMMERCE
• Ch. 14: UNFAIR TRADE PRACTICES AND CONSUMER PROTECTION
• Part 2: Unfair Trade Practices Generally

Text

30-14-227 . Transfer or sale of a franchise -- continuance of contracts. (1) Unless otherwise prohibited under a franchise agreement and in the event of a transfer between a franchisee and a third party, the franchisor may not unilaterally alter existing contracts between the franchisor and the franchisee and the transferee. A violation of this section constitutes an unfair trade practice subject to a $10,000 fine for each violation.
(2) This section does not apply to:
(a) motorsports dealer contracts under Title 30, chapter 14, part 25;
(b) new motor vehicle franchise agreements under Title 61, chapter 4; or
(c) farm implement dealership agreements under Title 30, chapter 11.
(3) For the purposes of this section, "franchise agreement" means a contract or agreement by which:
(a) a franchisee is granted the right to engage in business under a marketing plan prescribed in substantial part by the franchisor;
(b) the operation of the franchisee's business is substantially associated with the franchisor's trademark, trade name, logotype, or other commercial symbol or advertising designating the franchisor; and
(c) the franchisee is required to pay, directly or indirectly, a fee for the right to operate under the agreement.

Legislative History

En. Sec. 1, Ch. 224, L. 2021.