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80C.145 MOTOR FUEL FRANCHISES; RIGHT OF SURVIVORSHIP.
    Subdivision 1. Required provisions. No motor fuel franchisor shall initially execute or
renew a franchise agreement in the state after July 1, 1981 unless it contains the provisions of
subdivisions 3 to 9.
    Subd. 2. Definition; designated family member. For purposes of this section, "designated
family member" means the spouse, child, grandchild, parent, brother, or sister of the motor
fuel franchisee who, in the case of the motor fuel franchisee's death, is entitled to inherit the
franchisee's interest in the motor fuel franchise under the terms of the franchisee's will or under
the law of intestate succession of this state or who, in the case of an incapacitated franchisee, has
been appointed by a court as the legal representative of the franchisee's property.
    Subd. 3. Authorization. Any designated family member of a deceased or incapacitated
owner of a motor fuel franchise may succeed to the ownership of the existing franchise: (a) if
the designated family member gives the motor fuel franchisor written notice of the intention
to succeed to the motor fuel franchise within 60 days of the motor fuel franchisee's death or
incapacity; (b) if the designated family member agrees to be bound by all terms and conditions
of the existing franchise; and (c) unless there exists good cause for the refusal to honor the
succession on the part of the motor fuel franchisor.
    Subd. 4. Personal and financial data. At the time of serving notice under subdivision
3, the designated family member shall provide upon the request of the motor fuel franchisor,
personal and financial data that is reasonably necessary to determine whether the succession
should be honored.
    Subd. 5. Notice of termination or refusal to honor succession. If a motor fuel franchisor
believes in good faith that good cause exists for refusing to honor succession of the franchise by a
designated family member of a deceased or incapacitated motor fuel franchisee, the franchisor
may within 90 days after receipt of the personal and financial data requested under subdivision
4, serve notice upon the designated family member of its refusal to honor succession and of its
intent to terminate the existing motor fuel franchise with the designated family member no sooner
than 90 days from the date the notice is served.
    Subd. 6. Contents of notice. The notice must state the specific grounds for the refusal to
honor the succession and the termination of the existing franchise with the designated family
member.
    Subd. 7. Effect of notice not timely served. If notice of refusal and termination is not timely
served upon the designated family member, the existing motor fuel franchise shall continue in
effect subject to termination only as otherwise permitted by law.
    Subd. 8. Burden of proof. In determining whether good cause for the refusal to honor the
succession exists, the motor fuel franchisor has the burden of proving that the successor is a person
who is not of good moral character or does not meet the franchisor's existing, reasonable standards.
    Subd. 9. Succession agreements. Notwithstanding the foregoing, in the event the motor
fuel franchisee and the motor fuel franchisor have duly executed an agreement concerning
the succession rights prior to the franchisee's death or incapacitation, the agreement shall be
observed, even if the agreement designates an individual other than the surviving spouse or
heirs of the franchisee.
    Subd. 10. Enforcement. The attorney general or any aggrieved party may institute a civil
action in the district court for an injunction prohibiting a violation of this section. It is no defense
to the action that the state or the aggrieved party has adequate remedies at law.
History: 1981 c 59 s 1

Official Publication of the State of Minnesota
Revisor of Statutes