Biofuel Franchising Contract Regulations

Franchise documents may not restrict a franchisee from participating in any of the following activities:

  • Installing a biofuel pump or tank, except property leased from the franchisor;
  • Converting an existing tank or pump for biofuels use;
  • Advertising the sale of biofuels, including listing biofuel availability or prices on signage;
  • Selling biofuels;
  • Purchasing biofuel from other sources if the franchisor does not offer biofuel;
  • Installing or operating an ethanol blender pump, if the pump is approved for use by the appropriate jurisdictional authority; or
  • Selling a biofuel in place of one grade of gasoline, if the franchisee is required to sell three grades of gasoline.

Biofuels include biodiesel, biodiesel blends, ethanol, and ethanol blends. (Reference South Dakota Statutes 37-2-34, 37-2-35, and 37-2-37)