---
kind: "section"
citation: "15 U.S.C. § 2806"
title: "15"
title_heading: "Commerce and Trade"
number: "2806"
heading: "Relationship of statutory provisions to State and local laws"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/15/2806"
units:
  - "Chapter 55 — Petroleum Marketing Practices"
  - "Subchapter I — Franchise Protection"
---

# §2806. Relationship of statutory provisions to State and local laws

- (a) **Termination or nonrenewal of franchise—**
  - (1) To the extent that any provision of this subchapter applies to the [termination](/usc/15/2801.md?p=17) (or the furnishing of notification with respect thereto) of any [franchise](/usc/15/2801.md?p=1-A), or to the [nonrenewal](/usc/15/2801.md?p=14) (or the furnishing of notification with respect thereto) of any [franchise relationship](/usc/15/2801.md?p=2), no [State](/usc/15/2801.md?p=19) or any political subdivision thereof may adopt, enforce, or continue in effect any provision of any law or regulation (including any remedy or penalty applicable to any violation thereof) with respect to [termination](/usc/15/2801.md?p=17) (or the furnishing of notification with respect thereto) of any such [franchise](/usc/15/2801.md?p=1-A) or to the [nonrenewal](/usc/15/2801.md?p=14) (or the furnishing of notification with respect thereto) of any such [franchise relationship](/usc/15/2801.md?p=2) unless such provision of such law or regulation is the same as the applicable provision of this subchapter.
  - (2) No [State](/usc/15/2801.md?p=19) or political subdivision of a [State](/usc/15/2801.md?p=19) may adopt, enforce, or continue in effect any provision of law (including a regulation) that requires a payment for the goodwill of a [franchisee](/usc/15/2801.md?p=4) on the [termination](/usc/15/2801.md?p=17) of a [franchise](/usc/15/2801.md?p=1-A) or [nonrenewal](/usc/15/2801.md?p=14) of a [franchise relationship](/usc/15/2801.md?p=2) authorized by this subchapter.
- (b) **Transfer or assignment of franchise—**
  - (1) Nothing in this subchapter authorizes any transfer or assignment of any [franchise](/usc/15/2801.md?p=1-A) or prohibits any transfer or assignment of any [franchise](/usc/15/2801.md?p=1-A) as authorized by the provisions of such [franchise](/usc/15/2801.md?p=1-A) or by 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).
  - (2) Nothing in this subchapter shall prohibit any [State](/usc/15/2801.md?p=19) from specifying the terms and conditions under which any [franchise](/usc/15/2801.md?p=1-A) or [franchise relationship](/usc/15/2801.md?p=2) may be transferred to the designated successor of a [franchisee](/usc/15/2801.md?p=4) upon the death of the [franchisee](/usc/15/2801.md?p=4).

## Source credit

(Pub. L. 95–297, title I, § 106, June 19, 1978, 92 Stat. 332; Pub. L. 103–371, § 5, Oct. 19, 1994, 108 Stat. 3485.)

## Notes

### Editorial Notes

### Amendments

1994—Subsec. (a). Pub. L. 103–371, § 5(1), redesignated existing provisions as par. (1) and added par. (2).

Subsec. (b). Pub. L. 103–371, § 5(2), redesignated existing provisions as par. (1) and added par. (2).