Section 407.833

Title XXVI TRADE AND COMMERCE

Chapter 407

Effective - 28 Aug 2010   

  407.833.  Modification of franchise prohibited, when — complaint procedure with administrative hearing commission, written decision required. — 1.  Notwithstanding the term of any franchise to the contrary, a franchisor shall not modify a franchise during the term of the franchise or upon its renewal if the modification substantially and adversely affects the franchisee's rights, obligations, investment, or return on investment without giving ninety days written notice of the proposed modification to the franchisee unless the modification is required by law or court order.  Within the ninety-day notice period the franchisee may file with the administrative hearing commission and serve upon the franchisor a complaint for a determination of whether there is good cause for permitting the proposed modification and whether the proposed modification violates any provision of the MVFP act.  The administrative hearing commission shall promptly schedule a hearing and decide the matter.  Multiple complaints pertaining to the same proposed franchise modification shall be consolidated for hearing.  The proposed franchise modification shall not take effect pending the determination of the matter.

  2.  The burden of proof shall be on the franchisor, except that the burden of proof with regard to the factor set forth in subdivision (3) of this subsection shall be on the franchisee, and the administrative hearing commission may consider any relevant factor including:

  (1)  The reasons for the proposed modification;

  (2)  Whether the proposed modification is applied to or affects all franchisees in a nondiscriminating manner;

  (3)  The degree to which the proposed modification will have a substantial and adverse effect upon the franchisee's rights, investment, or return on investment;

  (4)  Whether the proposed modification is in the public interest;

  (5)  The degree to which the proposed modification is necessary to the orderly and profitable distribution of products by the franchisor;

  (6)  Whether the proposed modification is offset by other modifications beneficial to the franchisee;

  (7)  Whether the proposed modification violates any provision of the MVFP act.

  3.  The decision of the administrative hearing commission shall be in writing and shall contain findings of fact and a determination of whether there is good cause for permitting the proposed modification and whether the proposed modification violates any provision of the MVFP act.  The administrative hearing commission shall deliver copies of the decision to the parties personally or by registered mail.  If the administrative hearing commission determines that there is not good cause for permitting the proposed modification or that the proposed modification violates any provision of the MVFP act, then the franchisor shall not proceed with the proposed modification.

  4.  For purposes of this section, the term "modification" includes, but is not limited to, any change, amendment, supplement, deletion, addition, or replacement of any provision of the franchise.

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(L. 2010 H.B. 2198)