(A) Grounds for revocation. The grantor reserves the right to revoke the franchise, and all rights and privileges pertaining thereto, in the event that:
(1) A grantee substantially violates any material provision of this chapter or a franchise agreement;
(2) A grantee attempts to evade any of the material provisions of this chapter or a franchise agreement;
(3) The grantee practices an act of fraud or deceit upon the grantor;
(4) A grantee becomes insolvent, unable or unwilling to pay its debts or is adjudged bankrupt;
(5) A grantee fails to provide or maintain in full force and effect the liability and indemnification coverage or the performance bond as required pursuant to its franchise; or
(6) A grantee violates any orders or rulings of any regulatory body having jurisdiction over the grantee relative to this chapter or the franchise and after notice thereof, shall continue the violation and not remedy the same within 60 days.
(B) Procedure for revocation.
(1) Whenever grantor has reason to believe that there may be grounds for revocation of a franchise, the grantor shall first notify the grantee in writing of its basis for believing grounds for revocation exist. Such notice shall indicate with reasonable specificity the grounds for revocation that are believed to exist so that the grantee may have a reasonable opportunity to cure or otherwise address the same. If a grantee fails to adequately cure or address the purported grounds for revocation within 30 days of such notice, then the grantor may, upon 30 days’ written notice to the grantee, commence a public administrative hearing to determine whether there exists any ground for revocation.
(2) The administrative hearing shall be conducted so as to protect the full due process rights of the parties and provide for, at a minimum, the right to have counsel, the right to call and cross examine witnesses, and the right to a full transcript of the proceedings.
(3) After the close of the hearing, the grantor or the designated hearing officer shall issue a written decision based on the record of the proceedings, stating with specificity the findings and reasons supporting the decision.
(4) Upon revocation, a grantee shall have a period of 120 days subsequent to the date of the formal adoption of a revocation of the franchise by the county within which to file an appeal with a court of competent jurisdiction.
(5) During the appeal period, the franchise shall remain in full force and effect.
(Ord. passed 12-19-2005)