1. (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. (2) This section does not apply to:

   1. (a) motorsports dealer contracts under Title 30, chapter 14, part 25;
   2. (b) new motor vehicle franchise agreements under Title 61, chapter 4; or
   3. (c) farm implement dealership agreements under Title 30, chapter 11.

3. (3) For the purposes of this section, "franchise agreement" means a contract or agreement by which:

   1. (a) a franchisee is granted the right to engage in business under a marketing plan prescribed in substantial part by the franchisor;
   2. (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
   3. (c) the franchisee is required to pay, directly or indirectly, a fee for the right to operate under the agreement.

History: En. Sec. 1, Ch. 224, L. 2021.