It is the intent of the general assembly that small businesses operating within Tennessee pursuant to franchise agreements should be provided uniform rights and procedures to prevent arbitrary and capricious business practices by franchisors seeking to terminate or modify their franchise relationships or failing to renew existing franchise relationships.
As used in this part, unless the context otherwise requires: “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, […]
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 […]
If, during the period in which the franchise is in effect, any of the following events occurs, which event is relevant to the franchise, immediate notice of termination without an opportunity to cure shall be deemed reasonable: The franchisee or the business to which the franchise relates is declared bankrupt or judicially determined to be […]
No franchisor may fail to renew a franchise unless such franchisor provides the franchisee at least sixty (60) days’ prior written notice of its intention not to renew, such failure to renew is for good cause, and the franchisor has provided written notice of the facts and circumstances upon which it alleges that good cause […]
Notwithstanding § 47-25-1502(4), the following circumstances shall not be deemed to constitute “good cause”: Failure of a franchisee to meet a quota of sales or purchases, whether such quota is expressed as a goal, a quota or otherwise; The desire of the franchisor to consolidate its franchises or its distribution pattern without demonstrating a failure […]
A franchisee may not waive any of the rights granted in any provision of this part, and the provisions of any agreement which would have such an effect shall be null and void. Nothing in this part shall be construed to limit or prohibit good faith dispute settlements voluntarily entered into by the parties.
Upon giving the franchisor written notice of intent to transfer the franchisee’s business, any individual owning or deceased individual who owned an interest in a franchise may transfer or assign the franchisee’s business to the spouse, child, grandchild, parent, brother or sister of such individual. The consent or approval of the franchisor shall not be […]
Notwithstanding the terms of any franchise, agreement, waiver or other written instrument, any person who is injured by a violation of this part may bring an action for damages and equitable relief, including injunctive relief, reasonable attorney’s fees and costs in any court of competent jurisdiction in Tennessee.
No franchisee may prospectively assent to a release, assignment, novation, waiver or estoppel which would relieve any person from any liability or obligation under this part, or would require any controversy between a franchisor or franchisee to be referred to any person other than the duly constituted courts of this state or the United States, […]
This part is remedial and is supplementary to any other law of this state which provides rights and protections to franchisees. Any state law or regulation which provides procedural or substantive protection to any party to a franchise agreement prior to termination or nonrenewal shall be effective and supplementary to this part. Any state law […]
