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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.
| Criterion | Required scope |
|---|---|
| Nebraska place of business | The 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 parties | Covered product/service gross sales exceeding $35,000 during the 12 months immediately before the lawsuit is filed. |
| Franchise share | More than 20% of the franchisee’s gross sales intended to be or derived from the franchise. |
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.
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
Nebraska Legislature
Passage, dates and research notes
primary · 87-402(1), (5), (7), (8)
Place of business shall not mean an office, a warehouse
Full current section read. Definition and exclusions differ from federal rule. Nonalcoholic beverages have separate statutory branch; petroleum excluded from this definition.
Nebraska Legislature
Passage, dates and research notes
primary · 87-403(1)–(3)
more than twenty percent
Complete current section read. Place of business, sales between parties and sales proportion are cumulative scope criteria, not a statutory SMB revenue threshold.
Nebraska Legislature
Passage, dates and research notes
primary · 87-404(1)–(3)
at least sixty days in advance
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)
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.
Nebraska 87-402: Franchise Practices Act definitions Nebraska 87-403: Franchise Practices Act applicability Nebraska 87-404: termination, notice and noncompete provisionsKeep this reading in your learning library.
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