highlights
6
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A dealer’s Relevant Market Area (RMA) is defined as
a 6 mile radius surrounding the dealership in counties
of 100,000 or more population, and a 10 mile radius
surrounding the dealership in counties with less than
100,000 in population.
•
Allows an existing dealer who receives such a notice to
challenge the proposed addition or relocation.
•
The franchisor must show good cause for a new point or
relocation within an existing dealer’s RMA.
•
The statute contains a list of criteria to be considered
in determining whether there is good cause for the
addition or relocation including the existing dealer’s
investment and the impact on the consumer.
•
There are specific exceptions to the protest right to
provide flexibility for a dealer that is moving within its
RMA and/or further from other existing dealers.
Franchise Modification – Section 463(2)(ff)
page 28
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A franchisor may not “modify” the dealer’s franchise
unless it has provided at least 90 days notice and the
proposed modification is fair and not prohibited.
•
A modification is unfair if it would adversely alter the
rights, obligations, investment or return on investment
of the dealer under the existing franchise.
•
The dealer may protest the proposed modification, and
the franchisor has the burden of proof to establish the
proposed modification is fair and not prohibited.
Consent to Program Participation –
Section 463(2)(hh)
page 29
•
The franchisor shall not require a dealer to contribute
monetarily to a program or promotion without first
receiving the dealer’s written consent to participate in
the program or promotion.
