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Apply the state definition and every criterion

The Act has its own definition, including specific nonalcoholic-beverage wording, petroleum exclusion, franchise fee and good-cause concepts. A SAMP notice or federal franchise result does not decide this relationship question.

Section 87-403 requires all three criteria below; these are not general minimum sizes for entering Nebraska.

CriterionRequired scope
Nebraska place of businessThe defined fixed place displaying/selling goods or offering/selling the franchisor’s services. Office, warehouse, storage place, residence and vehicle are expressly excluded.
Sales between the partiesCovered product/service gross sales exceeding $35,000 during the 12 months immediately before the lawsuit is filed.
Franchise shareMore than 20% of the franchisee’s gross sales intended to be or derived from the franchise.

Sources: Nebraska Legislature: 87-402(1), (5), (7), (8) Nebraska Legislature: 87-403(1)–(3) Nebraska Legislature: 87-404(1)–(3)

Coverage is not a promise of indefinite renewal

Section 87-404 generally combines good cause with written reasons at least 60 days in advance, with an abandonment branch and specified immediate-notice grounds. Noncompetition provisions have their own scope.

Section 87-404(1) also preserves a contract making the franchise nonrenewable or renewable only on stated reasonable conditions. Apply the actual contract, action and branch rather than treating 60 days as automatic permission or renewal as guaranteed.

Sources: Nebraska Legislature: 87-404(1)–(3)

Scope

  • Actual definition, cumulative criteria, contract terms and exceptions require application. This is not complete Nebraska sales or operating-law coverage.

Next step

Test the exact premises and both sales criteria before relying on ongoing protections or choosing an exit procedure.

Sources & review notes

The source records distinguish access dates from substantive review dates. Updating an explanation does not itself recheck the law.

Nebraska 87-402: Franchise Practices Act definitions

Nebraska Legislature

Passage, dates and research notes

primary · 87-402(1), (5), (7), (8)

Place of business shall not mean an office, a warehouse

Accessed: 2026-11-12T21:20:37.215863+00:00 · Meaning reviewed: 2026-11-12 · Next review target: 2026-12-12

Full current section read. Definition and exclusions differ from federal rule. Nonalcoholic beverages have separate statutory branch; petroleum excluded from this definition.

Nebraska 87-403: Franchise Practices Act applicability

Nebraska Legislature

Passage, dates and research notes

primary · 87-403(1)–(3)

more than twenty percent

Accessed: 2026-11-12T21:20:37.622810+00:00 · Meaning reviewed: 2026-11-12 · Next review target: 2026-12-12

Complete current section read. Place of business, sales between parties and sales proportion are cumulative scope criteria, not a statutory SMB revenue threshold.

Nebraska 87-404: termination, notice and noncompete provisions

Nebraska Legislature

Passage, dates and research notes

primary · 87-404(1)–(3)

at least sixty days in advance

Accessed: 2026-11-12T21:20:37.417055+00:00 · Meaning reviewed: 2026-11-12 · Next review target: 2026-12-12

Complete current statute read.15 day abandonment and specified immediate-notice exceptions prevent universal 60 day claim; noncompete subsection has different scope.

Detailed rule records (1)
The Franchise Practices Act is independent of the SAMP notice Depends on the facts

Nebraska 87-402 and 87-403 set independent definition and application criteria, including a qualifying place of business, gross sales between the parties exceeding $35,000 for the specified 12 months, and more than 20% of the franchisee’s gross sales intended or derived from the franchise. Section 87-404 sets good-cause and notice rules with exceptions.

When to check: Designing, renewing, transferring or terminating a potentially covered relationship. Source review: 2026-11-12.

Nebraska 87-402: Franchise Practices Act definitions Nebraska 87-403: Franchise Practices Act applicability Nebraska 87-404: termination, notice and noncompete provisions
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