13-14-306. Evidence to be considered in determining cause to relocate or establish a new franchised dealership.

322 words·~1 min read·/ut/title-13/chapter-14/13-14-306

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

Effective 10/1/2024

In determining whether a franchisor has established good cause for relocating an existing franchisee or establishing a new franchised dealership for the same line-make in a given relevant market area, the executive director shall consider:

(1)the amount of business transacted by other franchisees of the same line-make in that relevant market area, as compared to business available to the franchisees;

(2)the investment necessarily made and obligations incurred by other franchisees of the same line-make in that relevant market area in the performance of their part of their franchisee agreements;

(3)the permanency of the existing and proposed investment;

(4)whether it is injurious or beneficial to the public welfare or public interest for an additional franchise to be established, including:

(a)the impact on any affected municipality;

(b)population growth trends in any affected municipality;

(c)the number of dealerships in the primary market area of the new or relocated dealership compared to the number of dealerships in each primary market area adjacent to the new or relocated dealership's primary market area; and

(d)how the new or relocated dealership would impact the distance and time that an individual in the new or relocated dealership's primary market area would have to travel to access a dealership in the same line-make as the new or relocated dealership;

(5)whether the franchisees of the same line-make in that relevant market area are providing adequate service to consumers for the motor vehicles of the line-make, which shall include the adequacy of:

(a)the motor vehicle sale and service facilities;

(b)equipment;

(c)supply of vehicle parts; and

(d)qualified service personnel; and

(6)whether the relocation or establishment would cause any material negative economic effect on a dealer of the same line-make in the relevant market area.

Amended by Chapter 507 , 2024 General Session