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. (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.