Montana Code 30-14-227. Transfer or sale of a franchise — continuance of contracts
30-14-227. Transfer or sale of a franchise — continuance of contracts. (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.
Terms Used In Montana Code 30-14-227
- Business: includes any person, domestic or foreign, engaged in the production, manufacture, distribution, purchasing, or sale of any article of commerce within the state of Montana. See Montana Code 30-14-202
- Continuance: Putting off of a hearing ot trial until a later time.
- Contract: A legal written agreement that becomes binding when signed.
(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.