(a) A term in any franchise agreement between a franchisor and a franchisee which prohibits the voluntary assignment of the franchise to which they are parties, or which requires the franchisor's consent to such assignment, is ineffective and void as contrary to public policy unless such term provides that consent may be or is reasonably withheld. Reasonable withholding of consent includes, but is not limited to: (1) Material and substantial change of the other party's duties; (2) material and substantial increase of the other party's contractual burden of risk; (3) material and substantial impairment of the other party's opportunity to obtain return performance.
(b) A term in any franchise agreement between a franchisor and franchisee which provides for the termination of the franchise to which they are parties upon the death of the franchisee is ineffective and void as contrary to public policy. If the franchisee at the time of death held an interest in a franchise, such interest may be passed by will or by intestacy to his spouse or child, or may be disposed of by his estate. The right of first refusal of such sale shall be granted to the franchisor. In the event of such disposition and for the purpose of avoiding or preventing such disposition, the franchisor shall be required to show that said disposition will materially and substantially prejudice such franchisor's rights under the terms of the then existing franchise agreement, as set forth in subsection (a) of this section.
(P.A. 77-493, S. 4.)
Structure Connecticut General Statutes
Title 42 - Business, Selling, Trading and Collection Practices
Chapter 739 - Trading Stamps, Mail Orders, Franchises, Credit Programs and Subscriptions
Section 42-126. - Sale of merchandise with trading stamps, coupons or other similar devices.
Section 42-126a. - Trading stamps.
Section 42-127b. - Licensing of persons in business on October 1, 1971.
Section 42-128. - Bond required.
Section 42-130. - Use of terms.
Section 42-132 and 42-133. - Application in case of pretended purchase or assignment. Penalty.
Section 42-133c. - Finance charge applied by retail sellers on open-end credit plans.
Section 42-133d. - Annual statement of interest imposed and paid under open-end credit plan.
Section 42-133e. - Franchises: Definitions.
Section 42-133f. - Termination, or cancellation of, or failure to renew a franchise.
Section 42-133h. - Applicability of sections 42-133e to 42-133g, inclusive.
Section 42-133j. - Legislative finding concerning petroleum product franchises.
Section 42-133k. - Definitions.
Section 42-133m. - Assignment of franchise. Automatic termination.
Section 42-133n. - Remedies. Effect of judgment. Limitation of actions.
Section 42-133r. - Definitions.
Section 42-133u. - Manufacturers or dealers to indemnify franchised dealers.
Section 42-133x. - Effects of a franchise termination, cancellation or nonrenewal.
Section 42-133z. - Refusal to honor succession by family member. Notice.
Section 42-133aa. - Burden of proof for succession refusal on manufacturer or distributor.
Section 42-133bb. - Prohibited acts by manufacturer or distributor re dealer.
Section 42-133cc. - Prohibited acts by manufacturer or distributor.
Section 42-133ee. - Civil action for injunction and damages.
Section 42-133gg. - Sale or transfer of names of credit cardholders.
Section 42-133ii. - Hold on credit or debit card account for the retail sale of gasoline.
Section 42-133mm. - Sale, transfers or assignment of franchisor's interest.