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C. GROUNDS FOR TERMINATION  :  10. § 2802(b)(3)(D) Convert, alter, sell, replace the premises; renewal uneconomical
  • Hooper Oil Company, Inc. v. American Petrofina Marketing, aff'd, No. 83-1050 (5th Cir. 11-14-83) Slip Opinion

    Franchisor terminated after receiving several checks which were dishonored and stated that continuation of the franchise relationship would be "uneconomical." The courts rejected franchisee's contention that franchisor's use of the term "uneconomical" limited franchisor to termination solely on the grounds of § 2802(b)(3)(D). The courts found that the use of the term "uneconomical" was not as a word of art that strictly limited franchisor to this section because of the extent of franchisee's knowledge of the reasons for his termination.


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