Limitations; franchise establishment, cancellation, termination or nonrenewal

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28-4452. Limitations; franchise establishment, cancellation, termination or nonrenewal

A. Notwithstanding the terms, provisions or conditions of an agreement or franchise, a franchisor shall not cancel, terminate or refuse to renew a franchise unless the franchisor has good cause for termination or nonrenewal.

B. A franchisor shall not enter into a franchise for the purpose of establishing an additional new motor vehicle dealership in a community in which the same line-make is then represented, unless there is good cause for the additional new motor vehicle dealership under the franchise and unless it is in the public interest.

C. Notwithstanding any other statute, a franchisor may initiate proceedings under this article to establish a new franchise before naming the particular franchisee and before designating or purchasing the particular site of the new franchise.


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