---
kind: "section"
citation: "15 U.S.C. § 2803"
title: "15"
title_heading: "Commerce and Trade"
number: "2803"
heading: "Trial and interim franchises"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/15/2803"
units:
  - "Chapter 55 — Petroleum Marketing Practices"
  - "Subchapter I — Franchise Protection"
---

# §2803. Trial and interim franchises

- (a) **Nonapplicability of statutory nonrenewal provisions—** The provisions of [section 2802 of this title](/usc/15/2802.md) shall not apply to the [nonrenewal](/usc/15/2801.md?p=14) of any [franchise relationship](/usc/15/2801.md?p=2)—
  - (1) under a trial [franchise](/usc/15/2801.md?p=1-A); or
  - (2) under an interim [franchise](/usc/15/2801.md?p=1-A).
- (b) **Definitions—** For purposes of this section—
  - (1) The term “trial [franchise](/usc/15/2801.md?p=1-A)” means any [franchise](/usc/15/2801.md?p=1-A)—
    - (A) which is entered into on or after June 19, 1978;
    - (B) the [franchisee](/usc/15/2801.md?p=4) of which has not previously been a party to a [franchise](/usc/15/2801.md?p=1-A) with the [franchisor](/usc/15/2801.md?p=3);
    - (C) the initial term of which is for a period of not more than 1 year; and
    - (D) which is in writing and [states](/usc/15/2801.md?p=19) clearly and conspicuously—
      - (i) that the [franchise](/usc/15/2801.md?p=1-A) is a trial [franchise](/usc/15/2801.md?p=1-A);
      - (ii) the duration of the initial term of the [franchise](/usc/15/2801.md?p=1-A);
      - (iii) that the [franchisor](/usc/15/2801.md?p=3) may [fail to renew](/usc/15/2801.md?p=14) the [franchise relationship](/usc/15/2801.md?p=2) at the conclusion of the initial term stated in the [franchise](/usc/15/2801.md?p=1-A) by notifying the [franchisee](/usc/15/2801.md?p=4), in accordance with the provisions of [section 2804 of this title](/usc/15/2804.md), of the [franchisor](/usc/15/2801.md?p=3)’s intention not to renew the [franchise relationship](/usc/15/2801.md?p=2); and
      - (iv) that the provisions of [section 2802 of this title](/usc/15/2802.md), limiting the right of a [franchisor](/usc/15/2801.md?p=3) to [fail to renew](/usc/15/2801.md?p=14) a [franchise relationship](/usc/15/2801.md?p=2), are not applicable to such trial [franchise](/usc/15/2801.md?p=1-A).
  - (2) The term “trial [franchise](/usc/15/2801.md?p=1-A)” does not include any unexpired period of any term of any [franchise](/usc/15/2801.md?p=1-A) (other than a trial [franchise](/usc/15/2801.md?p=1-A), as defined by [paragraph (1)](#b-1)) which was transferred or assigned by a [franchisee](/usc/15/2801.md?p=4) to the extent authorized by the provisions of the [franchise](/usc/15/2801.md?p=1-A) or any applicable provision of [State](/usc/15/2801.md?p=19) law which permits such transfer or assignment, without regard to any provision of the [franchise](/usc/15/2801.md?p=1-A).
  - (3) The term “interim [franchise](/usc/15/2801.md?p=1-A)” means any [franchise](/usc/15/2801.md?p=1-A)—
    - (A) which is entered into on or after June 19, 1978;
    - (B) the term of which, when combined with the terms of all prior interim [franchises](/usc/15/2801.md?p=1-A) between the [franchisor](/usc/15/2801.md?p=3) and the [franchisee](/usc/15/2801.md?p=4), does not exceed 3 years;
    - (C) the effective date of which occurs immediately after the expiration of a prior [franchise](/usc/15/2801.md?p=1-A), applicable to the [marketing premises](/usc/15/2801.md?p=8), which was not renewed if such [nonrenewal](/usc/15/2801.md?p=14)—
      - (i) was based upon a determination described in [section 2802(b)(2)(E) of this title](/usc/15/2802.md?p=b-2-E), and
      - (ii) the requirements of [section 2802(b)(2)(E) of this title](/usc/15/2802.md?p=b-2-E) were satisfied; and
    - (D) which is in writing and [states](/usc/15/2801.md?p=19) clearly and conspicuously—
      - (i) that the [franchise](/usc/15/2801.md?p=1-A) is an interim [franchise](/usc/15/2801.md?p=1-A);
      - (ii) the duration of the [franchise](/usc/15/2801.md?p=1-A); and
      - (iii) that the [franchisor](/usc/15/2801.md?p=3) may [fail to renew](/usc/15/2801.md?p=14) the [franchise](/usc/15/2801.md?p=1-A) at the conclusion of the term stated in the [franchise](/usc/15/2801.md?p=1-A) based upon a determination made by the [franchisor](/usc/15/2801.md?p=3) in good faith and in the normal course of business to withdraw from the marketing of [motor fuel](/usc/15/2801.md?p=12) through retail outlets in the [relevant geographic market area](/usc/15/2801.md?p=16) in which the [marketing premises](/usc/15/2801.md?p=8) are located if the requirements of [section 2802(b)(2)(E)(ii)](/usc/15/2802.md?p=b-2-E-ii) and (iii) of this title are satisfied.
- (c) **Nonrenewal upon meeting statutory notification requirements—** If the notification requirements of [section 2804 of this title](/usc/15/2804.md) are met, any [franchisor](/usc/15/2801.md?p=3) may [fail to renew](/usc/15/2801.md?p=14) any [franchise relationship](/usc/15/2801.md?p=2)—
  - (1) under any trial [franchise](/usc/15/2801.md?p=1-A), at the conclusion of the initial term of such trial [franchise](/usc/15/2801.md?p=1-A); and
  - (2) under any interim [franchise](/usc/15/2801.md?p=1-A), at the conclusion of the term of such interim [franchise](/usc/15/2801.md?p=1-A), if—
    - (A) such [nonrenewal](/usc/15/2801.md?p=14) is based upon a determination described in [section 2802(b)(2)(E) of this title](/usc/15/2802.md?p=b-2-E); and
    - (B) the requirements of [section 2802(b)(2)(E)(ii)](/usc/15/2802.md?p=b-2-E-ii) and (iii) of this title are satisfied.

## Source credit

(Pub. L. 95–297, title I, § 103, June 19, 1978, 92 Stat. 328.)