Factors in determining cause for establishing additional franchise for same line-make.

Checkout our iOS App for a better way to browser and research.

32-6B-48. Factors in determining cause for establishing additional franchise for same line-make.

In determining whether cause is established for entering into an additional franchise for the same line-make, the department shall consider the existing circumstances, including, but not limited to:

(1)The amount of business transacted by existing franchisees of the same line-make in that community;

(2)Whether the franchisees of the same line-make in that community are making a good faith effort to sell the franchisor's product;

(3)Investment necessarily made and obligations incurred by existing franchisees of the same line-make in the community in the performance of their part of their franchises;

(4)The effect on the retail vehicle business as a whole in that community;

(5)The general quality and reputation of existing franchisees in the community and their ability to provide consumer care and service; and

(6)Whether it is injurious to the public interest for an additional franchise to be established.

Source: SL 1986, ch 250, §49.


Download our app to see the most-to-date content.