19Franchisee to be offered new agreement after destruction or redevelopment of premises

#### 19 Franchisee to be offered new agreement after destruction or redevelopment of premises (1) Subject to subsection (2), where: (a) a corporation, being a franchisor, has terminated under section 16 or, in accordance with sections 17 and 17A (other than paragraph 17A(4)(b)), not renewed, a franchise agreement on the ground that the whole or a substantial part of the marketing premises was destroyed, or was damaged to such an extent as to render the operation of the premises impracticable, and subsequently the premises have been rebuilt or restored; or (b) a corporation, being a franchisor, has, in accordance with sections 17 and 17A (other than paragraph 17A(4)(b)), not renewed a franchise agreement on the ground that the marketing premises were to be redeveloped as described in subparagraph 17(1)(e)(ii); and, after the rebuilding, restoration or redevelopment, as the case may be, the premises are suitable for the retail sale of motor fuel, subsection (1A) applies in relation to the premises. (1A) If the corporation intends the premises to be used for the retail sale of motor fuel under a prescribed agreement, the corporation shall not enter into a prescribed agreement in relation to the premises with a person other than the former franchisee unless, before entering into the agreement with that person, the corporation, by notice in writing served on the former franchisee, has offered to enter into a prescribed agreement in relation to the premises with the former franchisee on terms no less favourable to the former franchisee than the terms of the proposed agreement with that person, and the offer has remained open for at least 30 days after the date of service of the notice. (2) In any proceedings involving the question whether a corporation has entered into an agreement in contravention of subsection (1A), the corporation shall not be taken to have contravened that subsection if the corporation establishes to the satisfaction of the court that: (a) the corporation served on the former franchisee, not less than 30 days before the agreement was entered into, notice in writing: (i) informing the franchisee of the proposed agreement; and (ii) setting out full particulars of, together with a statement of the facts relating to, any circumstances or event of a kind referred to in any of paragraphs 16(2)(a) to (j) (inclusive) intended to be relied on by the corporation for the purpose of this subsection; (b) during the subsistence of the relevant franchise agreement, circumstances or an event specified in the notice in accordance with subparagraph (a)(ii) existed or occurred; and (c) if the relevant franchise agreement were still subsisting, it would be just and equitable to terminate the agreement on the ground of those circumstances or that event, as the case may be. (3) In this section: > agency agreement, in relation to a corporation, means an agreement in pursuance of which motor fuel will be sold by retail by a person (not being an employee of the corporation) acting as agent of the corporation. > prescribed agreement means: (a) a franchise agreement described in paragraph 6(1)(a) or (b); or (b) an agency agreement.