2009 Iowa Code
Title 13 - Commerce
Subtitle 1 - Insurance and Related Regulation
CHAPTER 523H - FRANCHISES
523H.8 - NONRENEWAL OF A FRANCHISE.

        523H.8  NONRENEWAL OF A FRANCHISE.
         1.  A franchisor shall not refuse to renew a franchise unless both
      of the following apply:
         a.  The franchisee has been notified of the franchisor's
      intent not to renew at least six months prior to the expiration date
      or any extension of the franchise agreement.
         b.  Any of the following circumstances exist:
         (1)  Good cause exists, provided that the refusal of the
      franchisor to renew is not arbitrary or capricious.  For purposes of
      this section, "good cause" means cause based on a legitimate
      business reason.
         (2)  The franchisor and franchisee agree not to renew the
      franchise.
         (3)  The franchisor completely withdraws from directly or
      indirectly distributing its products or services in the geographic
      market served by the franchisee, provided that upon expiration of the
      franchise, the franchisor agrees not to seek to enforce any covenant
      of the nonrenewed franchisee not to compete with the franchisor or
      franchisees of the franchisor.
         2.  As a condition of renewal of the franchise, a franchise
      agreement may require that the franchisee meet the then current
      requirements for franchises and that the franchisee execute a new
      agreement incorporating the then current terms and fees for new
      franchises.  

         92 Acts, ch 1134, § 8; 95 Acts, ch 117, §5