523H.1 Definitions. When used in this chapter, unless the context otherwise requires: 1. “Affiliate” means a person controlling, controlled by, or under common control with another person, every officer or director of such a person, and every person occupying a similar status or performing similar functions. 2. “Business day” means a day other than a […]
523H.10 Duty of good faith. A franchise imposes on the parties a duty of good faith in performance and enforcement of the franchise agreement. “Good faith” means honesty in fact and the observance of reasonable commercial standards of fair dealing in the trade. 92 Acts, ch 1134, §10
523H.11 Repurchase of assets. A franchisor shall not prohibit a franchisee from, or enforce a prohibition against a franchisee, engaging in any lawful business at any location after a termination or refusal to renew by a franchisor, unless it is one which relies on a substantially similar marketing program as the terminated or nonrenewed franchise […]
523H.12 Independent sourcing. 1. Except as provided in subsection 2, a franchisor shall allow a franchisee to obtain equipment, fixtures, supplies, and services used in the establishment and operation of the franchised business from sources of the franchisee’s choosing, provided that such goods and services meet standards as to their nature and quality promulgated by […]
523H.13 Private civil action. A person who violates a provision of this chapter or order issued under this chapter is liable for damages caused by the violation, including, but not limited to, costs and reasonable attorneys’ and experts’ fees, and subject to other appropriate relief including injunctive and other equitable relief. 92 Acts, ch 1134, […]
523H.14 Choice of law. A condition, stipulation, or provision requiring the application of the law of another state in lieu of this chapter is void. 92 Acts, ch 1134, §14
523H.15 Construction with other law. This chapter does not limit any liability that may exist under another statute or at common law. Prior law governs all actions based on facts occurring before July 1, 1992. 92 Acts, ch 1134, §15
523H.16 Construction. This chapter shall be liberally construed to effectuate its purposes. 92 Acts, ch 1134, §16
523H.17 Severability. If any provision or clause of this chapter or any application of this chapter to any person or circumstances is held invalid, such invalidity shall not affect other provisions or applications of the chapter which can be given effect without the invalid provision or application, and to this end the provisions of this […]
523H.2 Applicability. This chapter applies to a new or existing franchise that is operated in the state of Iowa. For purposes of this chapter, the franchise is operated in this state only if the premises from which the franchise is operated is physically located in this state. For purposes of this chapter, a franchise including […]
523H.2A Applicability — limitation. 1. Notwithstanding section 523H.2, this chapter does not apply to a franchise agreement which is entered into on or after July 1, 2000. A franchise agreement which is entered into on or after July 1, 2000, shall be subject to section 537A.10. 2. This chapter shall govern all actions with respect […]
523H.3 Jurisdiction and nonjudicial resolution of disputes. 1. A provision in a franchise agreement restricting jurisdiction to a forum outside this state is void with respect to a claim otherwise enforceable under this chapter. 2. A civil action or proceeding arising out of a franchise may be commenced wherever jurisdiction over the parties or subject […]
523H.4 Waivers void. A condition, stipulation, or provision requiring a franchisee to waive compliance with or relieving a person of a duty or liability imposed by or a right provided by this chapter or a rule or order under this chapter is void. This section shall not affect the settlement of disputes, claims, or civil […]
523H.5 Transfer of franchise. 1. A franchisee may transfer the franchised business and franchise to a transferee, provided that the transferee satisfies the reasonable current qualifications of the franchisor for new franchisees. For the purposes of this section, a reasonable current qualification for a new franchisee is a qualification based upon a legitimate business reason. […]
523H.6 Encroachment. 1. If a franchisor develops, or grants to a franchisee the right to develop, a new outlet or location which sells essentially the same goods or services under the same trademark, service mark, trade name, logotype, or other commercial symbol as an existing franchisee and the new outlet or location has an adverse […]
523H.7 Termination. 1. Except as otherwise provided by this chapter, a franchisor shall not terminate a franchise prior to the expiration of its term except for good cause. For purposes of this section, “good cause” is cause based upon a legitimate business reason. “Good cause” includes the failure of the franchisee to comply with any […]
523H.8 Nonrenewal of a franchise. 1. A franchisor shall not refuse to renew a franchise unless both of the following apply: a. The franchisee has been notified of the franchisor’s intent not to renew at least six months prior to the expiration date or any extension of the franchise agreement. b. Any of the following […]
523H.9 Franchisee’s right to associate. A franchisor shall not restrict a franchisee from associating with other franchisees or from participating in a trade association, and shall not retaliate against a franchisee for engaging in these activities. 92 Acts, ch 1134, §9
