Title I of the Petroleum Marketing Practices Act (PMPA) sets certain requirements for the contracts between gasoline refiners or distributors and their retailers. It prohibits franchisors from terminating a franchise, or failing to renew one, except in accordance with its provisions. It is intended to protect distributors and retailers.
A supplier may terminate a franchise only for certain reasons such as the franchisee’s failure to make a good faith effort to carry out the terms of the franchise or if the supplier loses the right to grant use of the trademark under which the gasoline is sold.
A supplier may choose not to renew a franchise for all of the reasons it may terminate a franchise and for certain other additional reasons. These include the franchisee’s failure to agree to certain additional franchise terms or if the franchisee has a record of numerous customer complaints.