HF 3747

as introduced - 84th Legislature (2005 - 2006) Posted on 12/15/2009 12:00am

A bill for an act
relating to commerce; regulating motor fuel franchises; providing an exemption
from certain regulation; amending Minnesota Statutes 2004, section 80C.01,
subdivision 4; proposing coding for new law in Minnesota Statutes, chapter 80C.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

Minnesota Statutes 2004, section 80C.01, subdivision 4, is amended to read:

Subd. 4.

Franchise.

(a) "Franchise" means (1) a contract or agreement, either
express or implied, whether oral or written, for a definite or indefinite period, between
two or more persons:

(i) by which a franchisee is granted the right to engage in the business of offering or
distributing goods or services using the franchisor's trade name, trademark, service mark,
logotype, advertising, or other commercial symbol or related characteristics;

(ii) in which the franchisor and franchisee have a community of interest in the
marketing of goods or services at wholesale, retail, by lease, agreement, or otherwise; and

(iii) for which the franchisee pays, directly or indirectly, a franchise fee; or

(2) a contract, lease, or other agreement, either express or implied, whether oral or
written, for a definite or indefinite period, between two or more persons, whereby the
franchisee is authorized, permitted, or granted the right to market motor vehicle fuel at
retail under the franchisor's trade name, trademark, service mark, logotype, or other
commercial symbol or related characteristics owned or controlled by the franchisor; or

(3) the sale or lease of any products, equipment, chattels, supplies, or services to the
purchaser, other than the sale of sales demonstration equipment, materials or samples for a
total price of $500 or less to any one person, for the purpose of enabling the purchaser
to start a business and in which the seller:

(i) represents that the seller, lessor, or an affiliate thereof will provide locations or
assist the purchaser in finding locations for the use or operation of vending machines,
racks, display cases, or similar devices, or currency operated amusement machines or
devices, on premises neither owned or leased by the purchaser or seller; or

(ii) represents that the seller will purchase any or all products made, produced,
fabricated, grown, bred, or modified by the purchaser using, in whole or in part, the
supplies, services, or chattels sold to the purchaser; or

(iii) guarantees that the purchaser will derive income from the business which
exceeds the price paid to the seller; or

(4) an oral or written contract or agreement, either expressed or implied, for a
definite or indefinite period, between two or more persons, under which a manufacturer,
selling security systems through dealers or distributors in this state, requires regular
payments from the distributor or dealer as royalties or residuals for products purchased
and paid for by the dealer or distributor.

(b) "Franchise" does not include any business which is operated under a lease or
license on the premises of the lessor or licensor as long as such business is incidental to
the business conducted by the lessor or licensor on such premises, including, without
limitation, leased departments, licensed departments, and concessions.

(c) "Franchise" does not include any contract, lease or other agreement whereby the
franchisee is required to pay less than $100 on an annual basis, except those franchises
identified in paragraph (a), clause (2).

(d) "Franchise" does not include a contract, lease or other agreement between a new
motor vehicle manufacturer, distributor, or factory branch and a franchisee whereby the
franchisee is granted the right to market automobiles, motorcycles, trucks, truck-tractors,
or self-propelled motor homes or campers if the foregoing are designed primarily for the
transportation of persons or property on public highways.

(e) "Franchise" does not include a contract, lease, or other agreement or arrangement
between two or more air carriers, or between one or more air carriers and one or more
foreign air carriers. The terms "air carrier" and "foreign air carrier" shall have the
meanings assigned to them by the Federal Aviation Act, United States Code Appendix,
title 49, sections 1301(3) and 1301(22), respectively.

new text begin (f) "Franchise" does not include the marketing of motor vehicle fuel in circumstances
where all the following are present:
new text end

new text begin (1) the franchisor or an affiliate of the franchisor is not a refiner of motor vehicle
fuel, diesel fuel, or gasoline;
new text end

new text begin (2) the franchisor's tradename, trademark, service mark, logotype, or other
commercial symbol or related characteristics is not used to identify the marketing
premises generally, unless otherwise agreed to, but only the gasoline dispensers, canopy,
and gasoline price signage;
new text end

new text begin (3) the franchisor does not impose any requirements, unless otherwise agreed to or
franchise fee on nonmotor vehicle fuel products or sales; and
new text end

new text begin (4) the facility is not leased from the franchisor or affiliate of the franchisor.
new text end

new text begin Nothing in this paragraph is intended to interfere with the motor fuel marketing agreement
as agreed to by the franchisor and franchisee.
new text end

deleted text begin (f) deleted text end new text begin (g) new text end For purposes of this chapter, a person who sells motor vehicle fuel at wholesale
who does not own or control, or is not an affiliate of a person who owns or controls, the
trademark, trade name, service mark, logotype, or other commercial symbol or related
characteristics under which the motor vehicle fuel is sold at retail, is not a franchisor or a
franchisee, and is not considered to be part of a franchise relationship.

Sec. 2.

new text begin [80C.144] EXEMPT MOTOR FUEL FRANCHISES; ALTERNATIVE
COMPLIANCE.
new text end

new text begin A motor fuel franchise exempt from regulation under this chapter pursuant to section
80C.01, subdivision 4, paragraph (f), is subject to regulation under chapter 80F.
new text end