32-6E-3. Determination of cause for termination of franchise.

143 words·~1 min read·/sd/title-32/chapter-32-6/32-6e-3

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

In determining whether cause is established for terminating or not continuing a franchise, the department shall consider the existing circumstances including:

(1)Failure by the franchisee to comply with requirements imposed upon him by the franchise, which requirements are both essential and reasonable;

(2)Bad faith on the part of the franchisee in carrying out the terms of the franchise;

(3)Whether the franchise has adequate new snowmobile facilities, equipment, parts, and qualified management, sales, and service personnel to reasonably provide consumer care for the new snowmobiles sold at retail by the franchisee;

(4)Whether the franchisee refuses to honor warranties of the franchisor to be performed by the franchisee if the franchisor reimburses the franchisee for such warranty work performed by the franchisee; or

(5)Whether it is injurious to the public welfare for the business of the franchisee to be discontinued.