Petroleum franchises and the PMPA
The Petroleum Marketing Practices Act covers motor fuel franchises only. It lists the grounds for termination and non-renewal and requires notice, in general 90 days.
The Petroleum Marketing Practices Act (PMPA), 15 U.S.C. 2801 and following, is a federal statute for one kind of franchise: the right to use a trademark in selling motor fuel. If you run a branded gas station or a fuel distribution business, it may apply. If your franchise is a restaurant, a fitness studio or most other kinds, it does not.
Who is covered
Section 2801 defines a covered franchise as a contract between a refiner and a distributor or retailer, or between a distributor and another distributor or retailer, under which the franchisor authorizes or permits the other party to use a trademark in connection with the sale, consignment or distribution of motor fuel. Whether a particular arrangement fits the definition depends on its facts and the full definitions in the statute, which a lawyer can read against your contract.
Grounds for termination and non-renewal
Section 2802(b)(1) says a franchisor may terminate a covered franchise entered into or renewed on or after 19 June 1978, or fail to renew the relationship, only if the notification requirements of section 2804 are met and the action rests on a ground the statute lists. Termination grounds are listed in 2802(b)(2), and non-renewal grounds in (b)(2) or (b)(3). One listed ground is a failure to comply with a franchise provision "both reasonable and of material significance to the franchise relationship."
The statute's list is the point: under the PMPA a motor fuel franchisor cannot simply end the relationship for any reason. The full set of grounds, and the exceptions around them, are in the statute text and not summarized here beyond the quoted ground.
Notice
Section 2804(a)(2) requires the franchisor to give notification not less than 90 days before the termination or non-renewal takes effect. Under 2804(b)(1), where it would not be reasonable to give 90 days' notice, the franchisor must give notice on the earliest date on which furnishing it is reasonably practicable.
The content a notice must contain (section 2804(c)) and the remedies available to a franchisee (section 2805) were not read for this page, so nothing is said about them. Check the statute and ask a lawyer.
How this fits with other rules
The PMPA is one of two sector-specific federal franchise statutes found in the sources for this site; the other is the Automobile Dealer Day in Court Act. The general federal rule, the FTC Franchise Rule, is a disclosure rule and does not set termination grounds. The sources gathered for this site found no federal law requiring minimum notice or good cause for franchises generally. Many states add their own laws; see state franchise relationship laws.
Read the PMPA text yourself at the Cornell Legal Information Institute pages cited below, and compare it with the notice you received. The notice and the franchise agreement control your own dates, and a lawyer licensed in your state can advise on how the statute applies to them.
Where this came from
- 15 U.S.C. 2801 (checked 28 October 2026).
- 15 U.S.C. 2802 (checked 28 October 2026).
- 15 U.S.C. 2804 (checked 28 October 2026).