Oregon Code § 650.205·Enacted ·Last updated March 01, 2026
Statute Text
Prohibited conduct by franchisor.
Notwithstanding the terms of any franchise, a franchisor shall not:
(1) Require any
franchisee to meet unreasonable mandatory minimum sales volume requirements for
fuel or other products;
(2) Alter the
franchise premises during the effective term of the franchise without the
consent of the franchisee. This subsection does not apply to alterations
required by law;
(3) Interfere
with any franchisees right to assistance of counsel on any matter or to join
or be active in any trade association;
(4) Set or
compel, directly or indirectly, the retail price at which the franchisee sells
motor fuel or other products; and
(5)(a) With
respect to credit cards issued by the franchisor, chargeback any credit card
invoice to a motor fuel franchisee unless the franchisor provides the
cardholders last-known address, the reason for chargeback, a refund or credit
for any credit card handling fee collected on the transaction by the franchisor
from the franchisee, and the original invoice of the credit card charge or the
legal equivalent if the franchisor has previously received the invoice or a
copy thereof. The cardholders address need not be provided if the chargeback
is based on any alleged unlawful, fraudulent or deceptive act of the franchisee
or an employee of the franchisee, or if the cardholder claims no legal
responsibility for payment of the charge because it involved the unauthorized
use of a credit card.
(b) The terms and
conditions governing a motor fuel franchisees acceptance of a franchisor
issued credit card, including the reasons for which a chargeback may be made,
shall be established in writing and a copy thereof provided to the franchisee.
The franchisor or its agent shall provide at least 30 days prior written
notice to a franchisee before implementing any change to previously disclosed
terms and conditions if such change may increase the franchisees cost of
accepting the franchisor issued credit card or if such change adds to or amends
the reasons for which a chargeback may occur.
(c) No credit
card invoice for a franchisor issued credit card shall be charged back after
90-days from the date a charge invoice was submitted to the franchisor, except
that a chargeback may be made beyond the 90-day period if the cardholder or
franchisor alleges fraudulent or other unlawful actions by the franchisee or an
employee thereof in making the sale, or if the cardholder refuses payment to
the franchisor pursuant to rights granted under section 170 of the Federal
Truth-in-Lending Act (15 U.S.C. 1666i), or any rule issued under section 5 of
the Federal Trade Commission Act (15 U.S.C. 46), unless the cardholders
refusal to pay is the fault of the franchisor. [1987 c.917 §5]
Plain English Explanation
This Oregon statute addresses Prohibited conduct by franchisor. AI-powered analysis coming soon.
Key Points
01Part of Oregon statutory law
02Referenced as Oregon Code § 650.205
03Subject to legislative amendments
04Consult a licensed attorney for application to specific cases
Frequently Asked Questions
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