56:10-6 - Transfer of franchise; notice; approval; agreement of compliance - New Jersey Statutes

56:10-6.  Transfer of franchise;  notice;  approval;  agreement of compliance
    It shall be a violation of this act for any franchisee to transfer, assign or sell a franchise or interest therein to another person unless the franchisee  shall first notify the franchisor of such intention by written notice setting  forth in the notice of intent the prospective transferee's name, address,  statement of financial qualification and business experience during the  previous 5 years.  The franchisor shall within 60 days after receipt of such  notice either approve in writing to the franchisee such sale to proposed  transferee or by written notice advise the franchisee of the unacceptability of  the proposed transferee setting forth material reasons relating to the  character, financial ability or business experience of the proposed transferee.   If the franchisor does not reply within the specified 60 days, his approval is deemed granted.  No such transfer, assignment or sale hereunder shall be valid  unless the transferee agrees in writing to comply with all the requirements of  the franchise then in effect.

     L.1971, c. 356, s. 6, eff. Dec. 21, 1971.