---
kind: "section"
citation: "15 U.S.C. § 2804"
title: "15"
title_heading: "Commerce and Trade"
number: "2804"
heading: "Notification of termination or nonrenewal of franchise relationship"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/15/2804"
units:
  - "Chapter 55 — Petroleum Marketing Practices"
  - "Subchapter I — Franchise Protection"
---

# §2804. Notification of termination or nonrenewal of franchise relationship

- (a) **General requirements applicable to franchisor—** Prior to [termination](/usc/15/2801.md?p=17) of any [franchise](/usc/15/2801.md?p=1-A) or [nonrenewal](/usc/15/2801.md?p=14) of any [franchise relationship](/usc/15/2801.md?p=2), the [franchisor](/usc/15/2801.md?p=3) shall furnish notification of such [termination](/usc/15/2801.md?p=17) or such [nonrenewal](/usc/15/2801.md?p=14) to the [franchisee](/usc/15/2801.md?p=4) who is a party to such [franchise](/usc/15/2801.md?p=1-A) or such [franchise relationship](/usc/15/2801.md?p=2)—
  - (1) in the manner described in [subsection (c)](#c); and
  - (2) except as provided in [subsection (b)](#b), not less than 90 days prior to the date on which such [termination](/usc/15/2801.md?p=17) or [nonrenewal](/usc/15/2801.md?p=14) takes effect.
- (b) **Additional requirements applicable to franchisor—**
  - (1) In circumstances in which it would not be reasonable for the [franchisor](/usc/15/2801.md?p=3) to furnish notification, not less than 90 days prior to the date on which [termination](/usc/15/2801.md?p=17) or [nonrenewal](/usc/15/2801.md?p=14) takes effect, as required by [subsection (a)(2)](#a-2)—
    - (A) such [franchisor](/usc/15/2801.md?p=3) shall furnish notification to the [franchisee](/usc/15/2801.md?p=4) affected thereby on the earliest date on which furnishing of such notification is reasonably practicable; and
    - (B) in the case of [leased marketing premises](/usc/15/2801.md?p=9), such [franchisor](/usc/15/2801.md?p=3)—
      - (i) may not establish a new [franchise relationship](/usc/15/2801.md?p=2) with respect to such premises before the expiration of the 30-day period which begins—
        - (I) on the date notification was posted or personally delivered, or
        - (II) if later, on the date on which such [termination](/usc/15/2801.md?p=17) or [nonrenewal](/usc/15/2801.md?p=14) takes effect; and
      - (ii) may, if permitted to do so by the [franchise](/usc/15/2801.md?p=1-A) [agreement](/usc/15/7a.md?p=2), repossess such premises and, in circumstances under which it would be reasonable to do so, operate such premises through employees or agents.
  - (2) In the case of any [termination](/usc/15/2801.md?p=17) of any [franchise](/usc/15/2801.md?p=1-A) or any [nonrenewal](/usc/15/2801.md?p=14) of any [franchise relationship](/usc/15/2801.md?p=2) pursuant to the provisions of [section 2802(b)(2)(E) of this title](/usc/15/2802.md?p=b-2-E) or [section 2803(c)(2) of this title](/usc/15/2803.md?p=c-2), the [franchisor](/usc/15/2801.md?p=3) shall—
    - (A) furnish notification to the [franchisee](/usc/15/2801.md?p=4) not less than 180 days prior to the date on which such [termination](/usc/15/2801.md?p=17) or [nonrenewal](/usc/15/2801.md?p=14) takes effect; and
    - (B) promptly provide a copy of such notification, together with a plan describing the schedule and conditions under which the [franchisor](/usc/15/2801.md?p=3) will withdraw from the marketing of [motor fuel](/usc/15/2801.md?p=12) through retail outlets in the relevant geographic area, to the Governor of each [State](/usc/15/2801.md?p=19) which contains a portion of such area.
- (c) **Manner and form of notification—** Notification under this section—
  - (1) shall be in writing;
  - (2) shall be posted by certified mail or personally delivered to the [franchisee](/usc/15/2801.md?p=4); and
  - (3) shall contain—
    - (A) a statement of intention to terminate the [franchise](/usc/15/2801.md?p=1-A) or not to renew the [franchise relationship](/usc/15/2801.md?p=2), together with the reasons therefor;
    - (B) the date on which such [termination](/usc/15/2801.md?p=17) or [nonrenewal](/usc/15/2801.md?p=14) takes effect; and
    - (C) the summary statement prepared under [subsection (d)](#d).
- (d) **Preparation, publication, etc., of statutory summaries—**
  - (1) Not later than 30 days after June 19, 1978, the Secretary of Energy shall prepare and publish in the Federal Register a simple and concise summary of the provisions of this subchapter, including a statement of the respective responsibilities of, and the remedies and relief available to, any [franchisor](/usc/15/2801.md?p=3) and [franchisee](/usc/15/2801.md?p=4) under this subchapter.
  - (2) In the case of summaries required to be furnished under the provisions of [section 2802(b)(2)(D) of this title](/usc/15/2802.md?p=b-2-D) or [subsection (c)(3)(C)](#c-3-C) of this section before the date of publication of such summary in the Federal Register, such summary may be furnished not later than 5 days after it is so published rather than at the time required under such provisions.

## Source credit

(Pub. L. 95–297, title I, § 104, June 19, 1978, 92 Stat. 329.)