Circumstances Not Constituting “Good cause.”

  1. Law
  2. Tennessee Code
  3. Commercial Instruments and Transactions
  4. Trade Practices
  5. Franchise Terminations, Nonrenewals or Modifications
  6. Circumstances Not Constituting “Good cause.”

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Notwithstanding §47-25-1502(4), the following circumstances shall not be deemed to constitute “good cause”:

  1. Failure of a franchisee to meet a quota of sales or purchases, whether such quota is expressed as a goal, a quota or otherwise;
  2. The desire of the franchisor to consolidate its franchises or its distribution pattern without demonstrating a failure of the franchisee to effectively market or distribute its product;
  3. The failure of the franchisee to comply with a provision of a contract which is prohibited or invalid under the laws of Tennessee;
  4. The failure of the franchisee to comply with a provision of a contract or request of the franchisor which would cause the franchisee to violate any regulation of a regulatory body, or which could reasonably cause a franchisee to jeopardize any license or permit necessary for it to conduct its business; or
  5. The loss of the franchisee's right to occupy the premises from which the franchise business is operated, if such loss is directly or indirectly caused by the franchisor or any entity related to or affiliated with the franchisor.


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