13-35-306. Evidence to be considered in determining cause to relocate existing franchisee or establish a new franchised dealership.
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Effective 10/1/2024
13-35-306. Evidence to be considered in determining cause to relocate existing franchisee or establish a new franchised dealership.
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; and
(5)whether the franchisees of the same line-make in that relevant market area are providing adequate service to consumers for the powersport vehicles of the line-make, which shall include the adequacy of:
(a)the powersport vehicle sale and service facilities;
(b)equipment;
(c)supply of vehicle parts; and
(d)qualified service personnel.
Amended by Chapter 507 , 2024 General Session