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Montana Title 30. Trade and Commerce § 30-14-227. Transfer or sale of a franchise--continuance of contracts

Current as of January 01, 2024 | Updated by Findlaw Staff

(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.

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Cite this article: FindLaw.com - Montana Title 30. Trade and Commerce § 30-14-227. Transfer or sale of a franchise--continuance of contracts - last updated January 01, 2024 | https://codes.findlaw.com/mt/title-30-trade-and-commerce/mt-st-30-14-227/

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