323.14 - DEATH OF FRANCHISEE -- SUCCESSOR -- PENALTY.

        323.14  DEATH OF FRANCHISEE -- SUCCESSOR -- PENALTY.         1.  It is unlawful to include in any distributor franchise or      dealer franchise agreement a term which provides for the termination      of the franchise by the franchiser upon the death of the franchisee      if the franchisee, prior to the franchisee's death, designates a      successor-in-interest in a form prescribed by and delivered to the      franchiser.  For the purposes of this section,      "successor-in-interest" is restricted to either a surviving spouse or      adult child of the franchisee who, at the time of the franchisee's      death, is able to meet reasonable qualifications then being required      of distributors or dealers by the franchiser.         2.  The successor-in-interest designated as provided in subsection      1 shall have twenty-one days after the death of the franchisee to      give written notice of an election to assume and operate the      franchise.  The notification shall contain such information regarding      business experience and credit worthiness as is reasonably required      by the franchiser.  The successor-in-interest must offer to assume      and commence operation of the franchise within ten days after the      franchiser approves the assumption.         3.  The franchise available to the successor-in-interest pursuant      to this section shall be the same as that which existed in the name      of the deceased franchisee at the time of the franchisee's death.         4.  A franchisee may designate a primary and one alternate      successor-in-interest.  The alternate, if one is designated, has no      rights under this section in the event of an exercise of rights by      the primary successor-in-interest.  If an alternate desires to assume      and operate the franchise in the event the primary      successor-in-interest fails to do so, the alternate must give notice      of such election and otherwise comply with subsection 2.         5.  Unless otherwise specifically provided in this section,      actions to be performed by the franchiser or by the      successor-in-interest under this section shall be performed within a      reasonable time.         6.  Following the death of a franchisee, and prior to the      operation of the franchise by the successor-in-interest as provided      in this section, the executor or administrator of the estate of the      deceased franchisee may operate the franchise.         7.  If the successor-in-interest assumes the franchise, the      successor-in-interest shall account to the heirs or estate of the      deceased franchisee for the value of personal property of the      franchisee located at or related to the franchise.         8.  If the successor-in-interest does not assume the franchise,      the franchiser shall account to the heirs or the estate of the      deceased franchisee for the value of branded products purchased      directly from the franchiser.         9.  A franchisee or successor-in-interest may commence a civil      action to compel compliance by a franchiser with this section, or to      obtain damages caused by a failure to comply with this section, or      both, within two years after the date the franchiser fails to comply      with the requirements of this section.  
         Section History: Early Form
         [81 Acts, ch 114, § 1, 2]