§ 59.1-21.11. Required provisions pertaining to agreements between refinersand dealers.
Every agreement between a refiner and a dealer shall be subject to thefollowing provisions, whether or not expressly set forth therein:
1. The dealer shall not be required to keep his retail outlet open forbusiness for more than sixteen consecutive hours per day, nor more than sixdays per week. This subdivision shall not be construed to prevent any retailoutlet being open when required to be open to conform to any local, state orfederal law or regulation, nor shall this subdivision be construed to preventany retail outlet from being open for business for more than sixteenconsecutive hours per day or more than six days per week when the dealerdetermines that market conditions warrant such operation. This subdivisionshall not apply to retail outlets which participate in the travel servicessigning program of the Virginia Department of Transportation.
2. The right of either party to trial by jury or to the interposition ofcounterclaims or cross claims shall not be waived.
3. In the absence of any express agreement, the dealer shall not be requiredto participate financially in the use of any premium, coupon, give-away, orrebate in the operation of a retail outlet. The refiner may require thedealer to distribute to customers premiums, coupons, or give-aways which arefurnished to the dealer at the expense of the refiner.
4. No agreement or franchise subject to the provisions of this chapter shalllimit, restrict, or impair the number of retail outlets which an individualdealer may operate for the same refiner, nor may any agreement or franchiseestablish working hours for the dealer. However, an agreement or franchisemay require the dealer to be involved in the operation of the business of thedealer's retail outlet or retail outlets for not more than an average ofsixty hours per month. Notwithstanding the provisions of this subdivision, arefiner may impose a requirement in a trial franchise only, that a dealer beon the marketing premises of the dealer's retail outlet or retail outlets fora reasonable number of hours per week not to exceed twenty hours per week.
5. No transfer or assignment of a franchise by a dealer to a qualifiedtransferee or assignee shall be unreasonably disapproved by the refiner. Arefiner shall have forty-five days, after the date of submission by aproposed transferee or assignee of all personal and financial informationrequired by the refiner's reasonable and uniform standards, within which tonotify a dealer in writing that a proposed transferee or assignee meets orfails to meet the refiner's reasonable and uniform qualifications. If theproposed transferee or assignee fails to meet the refiner's reasonable andnormal qualifications, the notice to the dealer shall state with specificitythe reasons for such failure.
6. The term of the initial agreement between the refiner and the dealerrelating to specific marketing premises shall not be less than one year; theterm of all subsequent agreements between the refiner and the dealer,relating to the same marketing premises, shall not be for less than threeyears. The rental provisions in any such agreement or franchise shall bebased on commercially fair and reasonable standards, uniformly applied to allsimilarly situated dealers of the same refiner in the same geographic area.
7. A refiner may require a dealer to pay a fee or charge for the privilege ofhonoring a credit card issued by the refiner and used by customers of thedealer in purchasing at retail products and services at retail outlets whichbear the brand name or trademark of the refiner only if such refiner hasdeducted the cost of extending retail credit from the tankwagon price chargeddealers, has notified the dealer in writing of such deduction and such fee isa part of a program designed (i) to induce retail purchases for cash or (ii)to separate the cost of extending retail credit from the tankwagon price paidby the dealer. The amount of any such fee or charge shall be directly relatedto the actual cost incurred by the refiner in the extension of retail credit.Notwithstanding the provisions of subsection A of § 59.1-21.12, any refinerwho violates the provisions of this subdivision shall be civilly liable fordamages in treble the amount of the damages sustained by the complainingparty as a result of the violation.
8. A dealer shall have the right, effective upon his death, permanent andtotal disability, or retirement, to have his interests under a franchiseagreement with a refiner assigned to a designated family member who has beenapproved by the refiner in accordance with the refiner's reasonable anduniform standards for personal and financial condition unless the refinershows that the designated family member no longer meets the reasonable anduniform standards at the time of the previous approval. All franchiseagreements shall contain a provision identifying the designated family memberwho is entitled to succeed to the interests of the dealer under the agreementupon his death, permanent and total disability, or retirement. The foregoingshall not prohibit a refiner from requiring that the designated family memberaccept a trial franchise within twenty-one days of the dealer's death,permanent and total disability, or retirement and that the designated familymember attend a training program offered by the refiner.
A dealer and the refiner may mutually agree to change the designated familymember entitled to succeed to the dealer's interests under a franchiseagreement. The designated family member shall provide, upon the request ofthe refiner, personal and financial information that is reasonably necessaryto determine whether the succession should be honored. The refiner shall notbe obligated to accept a designated family member under this subdivision whodoes not meet the reasonable and uniform standards uniformly imposed by therefiner; however, any refusal to accept the designated family member as asuccessor dealer shall be given by the refiner in writing to the dealer, notlater than ninety days after the date of the designation of the designatedfamily member by the dealer, and shall state with specificity the reasons forsuch refusal.
9. a. No refiner shall condition approval of an assignment, transfer, sale,or renewal of a franchise agreement on the payment by the dealer, or theproposed successor dealer, of a franchise fee or penalty unless theassignment, transfer, or sale is of a franchise agreement covering a new ornewly remodeled facility.
b. A refiner may require a dealer to pay a franchise fee or penalty, ashereinafter provided, upon the assignment, transfer, or sale of a franchiseagreement covering a new facility within the first three years of the initialterm of the franchise agreement, or upon the assignment, transfer or sale ofa franchise agreement covering a newly remodeled facility within the firstthree years after the completion of the remodeling:
(1) An amount not to exceed sixty percent of the profit realized by thedealer if the assignment, transfer, or sale takes place within the firsttwelve-month period.
(2) An amount not to exceed twenty-five percent of the profit realized by thedealer if the assignment, transfer, or sale takes place within the secondtwelve-month period.
(3) An amount not to exceed ten percent of the profit realized by the dealerif the assignment, transfer, or sale takes place within the thirdtwelve-month period.
c. Nothing in this section shall authorize a refiner to impose a franchisefee or penalty upon an assignment, transfer, or sale to a family memberpursuant to subdivision 8 of this section.
d. In the case of a new facility, a franchise fee may be charged at the timethe first franchise agreement is entered into.
10. Any provision in any agreement or franchise purporting to waive any rightor remedy under this chapter or any applicable provisions of the PetroleumMarketing Practices Act (15 U.S.C. § 2802 et seq.) shall be null and void.
(1973, c. 423; 1979, c. 306; 1982, c. 350; 1985, c. 498; 1987, c. 535; 1990,c. 907; 1991, c. 199.)
§ 59.1-21.11. Required provisions pertaining to agreements between refinersand dealers.
Every agreement between a refiner and a dealer shall be subject to thefollowing provisions, whether or not expressly set forth therein:
1. The dealer shall not be required to keep his retail outlet open forbusiness for more than sixteen consecutive hours per day, nor more than sixdays per week. This subdivision shall not be construed to prevent any retailoutlet being open when required to be open to conform to any local, state orfederal law or regulation, nor shall this subdivision be construed to preventany retail outlet from being open for business for more than sixteenconsecutive hours per day or more than six days per week when the dealerdetermines that market conditions warrant such operation. This subdivisionshall not apply to retail outlets which participate in the travel servicessigning program of the Virginia Department of Transportation.
2. The right of either party to trial by jury or to the interposition ofcounterclaims or cross claims shall not be waived.
3. In the absence of any express agreement, the dealer shall not be requiredto participate financially in the use of any premium, coupon, give-away, orrebate in the operation of a retail outlet. The refiner may require thedealer to distribute to customers premiums, coupons, or give-aways which arefurnished to the dealer at the expense of the refiner.
4. No agreement or franchise subject to the provisions of this chapter shalllimit, restrict, or impair the number of retail outlets which an individualdealer may operate for the same refiner, nor may any agreement or franchiseestablish working hours for the dealer. However, an agreement or franchisemay require the dealer to be involved in the operation of the business of thedealer's retail outlet or retail outlets for not more than an average ofsixty hours per month. Notwithstanding the provisions of this subdivision, arefiner may impose a requirement in a trial franchise only, that a dealer beon the marketing premises of the dealer's retail outlet or retail outlets fora reasonable number of hours per week not to exceed twenty hours per week.
5. No transfer or assignment of a franchise by a dealer to a qualifiedtransferee or assignee shall be unreasonably disapproved by the refiner. Arefiner shall have forty-five days, after the date of submission by aproposed transferee or assignee of all personal and financial informationrequired by the refiner's reasonable and uniform standards, within which tonotify a dealer in writing that a proposed transferee or assignee meets orfails to meet the refiner's reasonable and uniform qualifications. If theproposed transferee or assignee fails to meet the refiner's reasonable andnormal qualifications, the notice to the dealer shall state with specificitythe reasons for such failure.
6. The term of the initial agreement between the refiner and the dealerrelating to specific marketing premises shall not be less than one year; theterm of all subsequent agreements between the refiner and the dealer,relating to the same marketing premises, shall not be for less than threeyears. The rental provisions in any such agreement or franchise shall bebased on commercially fair and reasonable standards, uniformly applied to allsimilarly situated dealers of the same refiner in the same geographic area.
7. A refiner may require a dealer to pay a fee or charge for the privilege ofhonoring a credit card issued by the refiner and used by customers of thedealer in purchasing at retail products and services at retail outlets whichbear the brand name or trademark of the refiner only if such refiner hasdeducted the cost of extending retail credit from the tankwagon price chargeddealers, has notified the dealer in writing of such deduction and such fee isa part of a program designed (i) to induce retail purchases for cash or (ii)to separate the cost of extending retail credit from the tankwagon price paidby the dealer. The amount of any such fee or charge shall be directly relatedto the actual cost incurred by the refiner in the extension of retail credit.Notwithstanding the provisions of subsection A of § 59.1-21.12, any refinerwho violates the provisions of this subdivision shall be civilly liable fordamages in treble the amount of the damages sustained by the complainingparty as a result of the violation.
8. A dealer shall have the right, effective upon his death, permanent andtotal disability, or retirement, to have his interests under a franchiseagreement with a refiner assigned to a designated family member who has beenapproved by the refiner in accordance with the refiner's reasonable anduniform standards for personal and financial condition unless the refinershows that the designated family member no longer meets the reasonable anduniform standards at the time of the previous approval. All franchiseagreements shall contain a provision identifying the designated family memberwho is entitled to succeed to the interests of the dealer under the agreementupon his death, permanent and total disability, or retirement. The foregoingshall not prohibit a refiner from requiring that the designated family memberaccept a trial franchise within twenty-one days of the dealer's death,permanent and total disability, or retirement and that the designated familymember attend a training program offered by the refiner.
A dealer and the refiner may mutually agree to change the designated familymember entitled to succeed to the dealer's interests under a franchiseagreement. The designated family member shall provide, upon the request ofthe refiner, personal and financial information that is reasonably necessaryto determine whether the succession should be honored. The refiner shall notbe obligated to accept a designated family member under this subdivision whodoes not meet the reasonable and uniform standards uniformly imposed by therefiner; however, any refusal to accept the designated family member as asuccessor dealer shall be given by the refiner in writing to the dealer, notlater than ninety days after the date of the designation of the designatedfamily member by the dealer, and shall state with specificity the reasons forsuch refusal.
9. a. No refiner shall condition approval of an assignment, transfer, sale,or renewal of a franchise agreement on the payment by the dealer, or theproposed successor dealer, of a franchise fee or penalty unless theassignment, transfer, or sale is of a franchise agreement covering a new ornewly remodeled facility.
b. A refiner may require a dealer to pay a franchise fee or penalty, ashereinafter provided, upon the assignment, transfer, or sale of a franchiseagreement covering a new facility within the first three years of the initialterm of the franchise agreement, or upon the assignment, transfer or sale ofa franchise agreement covering a newly remodeled facility within the firstthree years after the completion of the remodeling:
(1) An amount not to exceed sixty percent of the profit realized by thedealer if the assignment, transfer, or sale takes place within the firsttwelve-month period.
(2) An amount not to exceed twenty-five percent of the profit realized by thedealer if the assignment, transfer, or sale takes place within the secondtwelve-month period.
(3) An amount not to exceed ten percent of the profit realized by the dealerif the assignment, transfer, or sale takes place within the thirdtwelve-month period.
c. Nothing in this section shall authorize a refiner to impose a franchisefee or penalty upon an assignment, transfer, or sale to a family memberpursuant to subdivision 8 of this section.
d. In the case of a new facility, a franchise fee may be charged at the timethe first franchise agreement is entered into.
10. Any provision in any agreement or franchise purporting to waive any rightor remedy under this chapter or any applicable provisions of the PetroleumMarketing Practices Act (15 U.S.C. § 2802 et seq.) shall be null and void.
(1973, c. 423; 1979, c. 306; 1982, c. 350; 1985, c. 498; 1987, c. 535; 1990,c. 907; 1991, c. 199.)
§ 59.1-21.11. Required provisions pertaining to agreements between refinersand dealers.
Every agreement between a refiner and a dealer shall be subject to thefollowing provisions, whether or not expressly set forth therein:
1. The dealer shall not be required to keep his retail outlet open forbusiness for more than sixteen consecutive hours per day, nor more than sixdays per week. This subdivision shall not be construed to prevent any retailoutlet being open when required to be open to conform to any local, state orfederal law or regulation, nor shall this subdivision be construed to preventany retail outlet from being open for business for more than sixteenconsecutive hours per day or more than six days per week when the dealerdetermines that market conditions warrant such operation. This subdivisionshall not apply to retail outlets which participate in the travel servicessigning program of the Virginia Department of Transportation.
2. The right of either party to trial by jury or to the interposition ofcounterclaims or cross claims shall not be waived.
3. In the absence of any express agreement, the dealer shall not be requiredto participate financially in the use of any premium, coupon, give-away, orrebate in the operation of a retail outlet. The refiner may require thedealer to distribute to customers premiums, coupons, or give-aways which arefurnished to the dealer at the expense of the refiner.
4. No agreement or franchise subject to the provisions of this chapter shalllimit, restrict, or impair the number of retail outlets which an individualdealer may operate for the same refiner, nor may any agreement or franchiseestablish working hours for the dealer. However, an agreement or franchisemay require the dealer to be involved in the operation of the business of thedealer's retail outlet or retail outlets for not more than an average ofsixty hours per month. Notwithstanding the provisions of this subdivision, arefiner may impose a requirement in a trial franchise only, that a dealer beon the marketing premises of the dealer's retail outlet or retail outlets fora reasonable number of hours per week not to exceed twenty hours per week.
5. No transfer or assignment of a franchise by a dealer to a qualifiedtransferee or assignee shall be unreasonably disapproved by the refiner. Arefiner shall have forty-five days, after the date of submission by aproposed transferee or assignee of all personal and financial informationrequired by the refiner's reasonable and uniform standards, within which tonotify a dealer in writing that a proposed transferee or assignee meets orfails to meet the refiner's reasonable and uniform qualifications. If theproposed transferee or assignee fails to meet the refiner's reasonable andnormal qualifications, the notice to the dealer shall state with specificitythe reasons for such failure.
6. The term of the initial agreement between the refiner and the dealerrelating to specific marketing premises shall not be less than one year; theterm of all subsequent agreements between the refiner and the dealer,relating to the same marketing premises, shall not be for less than threeyears. The rental provisions in any such agreement or franchise shall bebased on commercially fair and reasonable standards, uniformly applied to allsimilarly situated dealers of the same refiner in the same geographic area.
7. A refiner may require a dealer to pay a fee or charge for the privilege ofhonoring a credit card issued by the refiner and used by customers of thedealer in purchasing at retail products and services at retail outlets whichbear the brand name or trademark of the refiner only if such refiner hasdeducted the cost of extending retail credit from the tankwagon price chargeddealers, has notified the dealer in writing of such deduction and such fee isa part of a program designed (i) to induce retail purchases for cash or (ii)to separate the cost of extending retail credit from the tankwagon price paidby the dealer. The amount of any such fee or charge shall be directly relatedto the actual cost incurred by the refiner in the extension of retail credit.Notwithstanding the provisions of subsection A of § 59.1-21.12, any refinerwho violates the provisions of this subdivision shall be civilly liable fordamages in treble the amount of the damages sustained by the complainingparty as a result of the violation.
8. A dealer shall have the right, effective upon his death, permanent andtotal disability, or retirement, to have his interests under a franchiseagreement with a refiner assigned to a designated family member who has beenapproved by the refiner in accordance with the refiner's reasonable anduniform standards for personal and financial condition unless the refinershows that the designated family member no longer meets the reasonable anduniform standards at the time of the previous approval. All franchiseagreements shall contain a provision identifying the designated family memberwho is entitled to succeed to the interests of the dealer under the agreementupon his death, permanent and total disability, or retirement. The foregoingshall not prohibit a refiner from requiring that the designated family memberaccept a trial franchise within twenty-one days of the dealer's death,permanent and total disability, or retirement and that the designated familymember attend a training program offered by the refiner.
A dealer and the refiner may mutually agree to change the designated familymember entitled to succeed to the dealer's interests under a franchiseagreement. The designated family member shall provide, upon the request ofthe refiner, personal and financial information that is reasonably necessaryto determine whether the succession should be honored. The refiner shall notbe obligated to accept a designated family member under this subdivision whodoes not meet the reasonable and uniform standards uniformly imposed by therefiner; however, any refusal to accept the designated family member as asuccessor dealer shall be given by the refiner in writing to the dealer, notlater than ninety days after the date of the designation of the designatedfamily member by the dealer, and shall state with specificity the reasons forsuch refusal.
9. a. No refiner shall condition approval of an assignment, transfer, sale,or renewal of a franchise agreement on the payment by the dealer, or theproposed successor dealer, of a franchise fee or penalty unless theassignment, transfer, or sale is of a franchise agreement covering a new ornewly remodeled facility.
b. A refiner may require a dealer to pay a franchise fee or penalty, ashereinafter provided, upon the assignment, transfer, or sale of a franchiseagreement covering a new facility within the first three years of the initialterm of the franchise agreement, or upon the assignment, transfer or sale ofa franchise agreement covering a newly remodeled facility within the firstthree years after the completion of the remodeling:
(1) An amount not to exceed sixty percent of the profit realized by thedealer if the assignment, transfer, or sale takes place within the firsttwelve-month period.
(2) An amount not to exceed twenty-five percent of the profit realized by thedealer if the assignment, transfer, or sale takes place within the secondtwelve-month period.
(3) An amount not to exceed ten percent of the profit realized by the dealerif the assignment, transfer, or sale takes place within the thirdtwelve-month period.
c. Nothing in this section shall authorize a refiner to impose a franchisefee or penalty upon an assignment, transfer, or sale to a family memberpursuant to subdivision 8 of this section.
d. In the case of a new facility, a franchise fee may be charged at the timethe first franchise agreement is entered into.
10. Any provision in any agreement or franchise purporting to waive any rightor remedy under this chapter or any applicable provisions of the PetroleumMarketing Practices Act (15 U.S.C. § 2802 et seq.) shall be null and void.
(1973, c. 423; 1979, c. 306; 1982, c. 350; 1985, c. 498; 1987, c. 535; 1990,c. 907; 1991, c. 199.)
