Tennessee Code Annotated
Tenn. Code Ann. § 47-25-604 (2026)
Termination of franchise agreement - Notice - Permissible causes
✓ current as of May 2026
- (a)
- (1) Any vertically integrated producer engaged in a franchise agreement with a dealer shall give sixty (60) days' notice to such dealer prior to termination or nonrenewal of such franchise agreement.
- (2) Such notice shall state the date of issuance and termination and the cause for such termination.
- (3) The notice provided for in this section shall not be required in emergencies where franchise agreement termination is for cause and the notice requirement would place an unreasonable burden on the vertically integrated producer.
- (b) Permissible causes may include, but are not limited to:
- (1) Substantial breach of the franchise agreement by the dealer;
- (2) Occurrences rendering performance of the franchise agreement impossible, such as the death of either party or the destruction of the retail petroleum outlet premises;
- (3) Mutual agreement of the parties; and
- (4) Bankruptcy of either party.
Acts 1975, ch. 232, § 1; T.C.A., § 69-704.
Notes of Decisions
Cited in 1
case, 2001–2001 · leading case: Shah v. Racetrac Petroleum, Inc., 275 F. Supp. 2d 920 (E.D. Tenn. 2001).
Shah v. Racetrac Petroleum, Inc., 275 F. Supp. 2d 920 (E.D. Tenn. 2001). “See T.C.A. § 47-25-604(a)(l) (“Any vertically integrated producer engaged in a franchise agreement with a dealer shall give sixty (60) days’ notice to such dealer prior to termination or nonrenewal of such franchise agreement”).”
Tenn. Code Ann. § 47-25-604(a)(l): 1 case
Shah v. Racetrac Petroleum, Inc., 275 F. Supp. 2d 920 (E.D. Tenn. 2001). “See T.C.A. § 47-25-604(a)(l) (“Any vertically integrated producer engaged in a franchise agreement with a dealer shall give sixty (60) days’ notice to such dealer prior to termination or nonrenewal of such franchise agreement”).”
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