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C. GROUNDS FOR TERMINATION  :  6. § 2802(b)(2)(E) Market withdrawal (3 year franchise)
  • Beck Oil Co., Inc. v. Texaco Marketing and Refining, Inc., 822 F. Supp. 1326 (C.D. Ill. 5-27-93); aff'd, 25 F.3d 559 (7th Cir. 6-1-94)

    Summary judgment for franchisor affirmed. Finding the test of good faith under §2802(b)(2)(E) is one of subjective intent. No evidence of discriminatory treatment. Comprehensive evidence of economic reasons for withdrawal. Not necessary to show severe economic loss to prove good faith. Good faith was shown by studies and analysis of franchisor's USA operations. Franchisor did not withdraw from entire state or a large metropolitan area, but from a contiguous four-state area of 278 counties. While size of the area important, determination of "relevant" requires "good faith" and "normal course of business" analysis.


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