Ohandjanian v. Mobil Oil Corporation, CCH BFG 8249 (C.D. Cal. 10-1-84)

Termination under this section was permissible when franchisor did not exercise its option to renew underlying lease. The court rejected franchisee's contentions that (1) not exercising a renewal option did not constitute good faith business judgment since the station was profitable; (2) franchisor acted in bad faith and in retaliation for past legal difficulties; (3) franchisor was arbitrary and discriminatory due to the increased maximum gallonage figures in franchisee's sales contract; and (4) notice of the termination of the underlying lease. The court held that this section contains no reference to either the cause for the expiration of the underlying lease or to a requirement of good faith. Also, franchisee did not need notice of the termination of the underlying lease because his lease was sufficiently clear and he had actual knowledge of the facts when he signed his lease.