28-4453. Franchise; notice of intention

338 words·~2 min read·/az/title-28/28-4453

A research copy — for the controlling text, always check the official state or federal source. Not legal advice.

A. If a franchisor seeks to enter into a franchise establishing an additional new motor vehicle dealership of the same line-make, the franchisor shall, and the franchisee may at any time, file with the director a notice of intention to enter into a franchise for additional representation of the same line-make.

B. If the franchisor intends to establish an additional new motor vehicle dealership, the director shall send notice within five days of receipt to all franchisees of the same line-make in the community and to all other franchises located within ten miles of the proposed dealership by the shortest street route, if located outside the community, who are then engaged in the business of offering to sell or selling the same line-make. In counties with a population of less than two hundred thousand persons, the notice additionally shall be sent to all dealers located within twenty miles of the proposed new franchise as determined by the shortest street route.

The director shall address copies of notices to the principal place of business of the franchisees.

C. The relocation or the reopening of a dealership within two years of the closing within the area of responsibility assigned in the franchise is not considered an additional dealership for purposes of this chapter, provided that the location of the replacement dealership is within one mile of the previous location.

D. If a franchisor seeks to terminate, cancel or not renew a franchise, the franchisor shall notify the franchisee and the director in writing by certified mail or personal delivery. The notice shall contain all of the following:

1. A statement of the franchisor's intention to terminate, cancel or not renew the franchise.

2. A statement of the reasons for the termination, cancellation or nonrenewal.

3. The date on which the termination, cancellation or nonrenewal is effective.

E. This section does not apply to an intended termination, cancellation or nonrenewal of a franchise that the franchisee elects voluntarily, pursuant to a plan established by the franchisor, to submit to binding arbitration.