The Law of Service Station Franchises

If you are a service station franchisee or dealer, then state and federal law may provide you and your business certain protections under industry-specific franchise laws. Courts and legislatures have placed particular emphasis on preventing petroleum product franchisors, manufacturers, and suppliers from arbitrarily and unjustly terminating their retail gasoline franchisees or dealers. Accordingly, an experienced franchise attorney can wield these legal tools to keep your service station franchise from unfair termination or non-renewal.

Keep Your Service Station Franchise from Unfair Termination or Non-Renewal

On such protection is the Petroleum Marketing Practices Act, which federalized the law of oil franchise regulation and prohibits an oil franchisor, manufacturer or supplier from terminating or failing to renew a dealer or franchisee except for narrowly defined “good cause.” Generally, this means that a franchisor, manufacturer, or supplier may terminate only if the franchisee or dealer failed to comply with a provision in the franchise agreement, which is both reasonable and of material significance to the franchise relationship, and failed to exert good faith efforts to carry out the agreement. Further, under the Act, franchisors, manufacturers or suppliers that seek to terminate a franchisee or dealer agreement must initiate the process by providing notice to its franchisee or dealer within specified time frames. The Act also creates a private cause of action for gasoline station dealers or franchisees that believe their franchises have been unjustly terminated.

If a termination or nonrenewal does occur, and the franchisee or dealer believes that the franchisor, manufacturer or supplier has not complied with the Act, the statute authorizes the franchisee or dealer to bring suit, which may result in a preliminary injunction to maintain the status quo. Accordingly, it is imperative that franchisees move quickly if they believe termination or nonrenewal is imminent.

In addition to this federal law, gas station franchisees and dealers may have other remedies under state law for oppressive franchisor, manufacturer or supplier conduct. These laws may address claims for breach of contract, termination or non-renewal. While some states have enacted laws that protect gas station franchisees or dealers, the prevailing rules under the Petroleum Marketing Practices Act usually govern. This legal landscape is complicated; seeking the advice of an experienced franchise attorney familiar with state and federal industry-specific franchise laws is necessary in protecting a service station franchisee or dealers’ business.

Success of Goldstein Law Firm in Advocating for Service Station Franchisees and Dealers 

Jeff Goldstein and the lawyers at the Goldstein law firm have over thirty years of experience in franchise law, during which time Goldstein Law has represented only franchisees and dealers. Attorney Goldstein and his associates can effectively navigate the complicated federal and state legal systems that are specific to service station franchisees and dealers. Jeff Goldstein’s extensive knowledge of franchise law has allowed him to defeat threatened terminations and non-renewals around the country. With both the federal Petroleum Marketing Practices Act and state law at play, an experienced franchise lawyer, like Jeff Goldstein, can make all the difference in crafting a successful legal strategy.

What to Do If You Suspect Your Service Station Franchise or Dealer Agreement Will Be Unfairly Terminated or Not Renewed

Jeff Goldstein’s thirty years of franchise litigation experience enables him to skillfully advocate for service station franchisees and dealers around the country. If you suspect that you have may face termination, non-renewal or have been treated unfairly, you should contact Jeff Goldstein at the Goldstein Law Firm at 202-293-3947. Don’t let your franchisor or supplier’s unfair treatment devastate your business and personal fortunes.

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Goldstein Law Firm, PLLC

1629 K St. NW, Suite 300,
Washington, DC 20006

Phone: 202-293-3947
Fax: 202-315-2514

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