; notice (a) In general A franchisor shall not, directly or through an officer, agent, or employee, fail to renew a franchise, except for good cause shown. (b) Fees Renewals shall not be subject to unreasonable fees. Fees shall not be deemed unreasonable if they do not exceed 50 percent of the amount of the average initial franchise fee or other required payments then being charged to all franchisees. (c) Good cause for nonrenewal Good cause as described in subsection (a) shall be based upon legitimate business reason which shall include, the franchisee’s refusal or failure to substantially comply with any material, reasonable and reasonably necessary express obligation of the franchise agreement within the 1-year period prior to renewal, including repeated and intentional nonpayment of royalties, advertising or marketing fees clearly required by the franchise agreement. (d) Notice of nonrenewal Before nonrenewal of the franchise, the franchisor shall give the franchisee written notice at least 90 days in advance of the nonrenewal. The notice shall state all of the reasons constituting good cause for the nonrenewal and shall provide that the franchisee has 60 days in which to rectify any claimed discrepancy and reinstate its right to renew the franchise. (e) Preservation of fees If the franchisor requires the franchisee to sign a new franchise agreement as a condition of renewal, such franchise agreement shall contain the same royalties, advertising fees, and other fees as the expiring agreement, no new fees and any protected territory in the expiring agreement shall be the same in the renewal franchise. (f) Prohibited actions A franchisor shall not prohibit, or enforce a prohibition against, any franchisee from— (1) engaging in any business at any location after expiration of a franchise agreement