Termination, cancellation, or nonrenewal of a recreational vehicle franchise agreement.
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(1) This section applies only to a recreational vehicle franchisee's termination, cancellation, or nonrenewal of:
(a) a recreational vehicle franchise; or
(b) a recreational vehicle line-make.
(2)
(a) A recreational vehicle franchisee may, at any time and with or without good cause, terminate, cancel, or not renew its recreational vehicle franchise agreement or a recreational vehicle line-make by giving 30 days' prior written notice to the recreational vehicle franchisor.
(b) A franchisee has the burden of showing that a termination, cancellation, or nonrenewal is for good cause.
(c) Good cause for a franchisee's termination, cancellation, or nonrenewal is considered to exist if:
(i) the franchisor is convicted of or enters a plea of nolo contendere to a felony;
(ii) the business operations of the franchisor are:
(A) abandoned; or
(B) closed for 10 consecutive business days, unless the closing is due to an act of God, a strike, a labor difficulty, or another cause over which the franchisor has no control;
(iii) the franchisor makes a misrepresentation that materially and adversely affects the business relationship with the recreational vehicle franchisee;
(iv) a material violation of this chapter is not cured within 30 days after the franchisee gives 30 days' written notice of the violation to the recreational vehicle franchisor; or
(v) the recreational vehicle franchisor:
(A) becomes insolvent;
(B) declares bankruptcy; or
(C) makes an assignment for the benefit of creditors.
(3) If the franchisee terminates, cancels, or does not renew the recreational vehicle franchise agreement or line-make for cause, the franchisor shall, at the franchisee's election and within 45 days after termination, cancellation, or nonrenewal, repurchase:
(a)
(i) all new, unaltered recreational vehicles, including demonstrators, that the franchisee acquired from the franchisor within 18 months before the date of the termination, cancellation, or nonrenewal; and
(ii) for a repurchase price equal to 100% of the original net invoice cost, including transportation, reduced by:
(A) any applicable rebates and discounts to the franchisee; and
(B) the cost to repair any damage to a repurchased recreational vehicle, if the vehicle is damaged after delivery to the franchisee but before repurchase occurs;
(b)
(i) all undamaged accessories and proprietary parts sold by the recreational vehicle franchisor to the franchisee within one year before termination, cancellation, or nonrenewal, if accompanied by the original invoice; and
(ii) for a repurchase price equal to 100% of the original net invoice cost, plus an additional 5% of the original net invoice cost to compensate the franchisee for packing and shipping the returned accessories and parts to the franchisor; and
(c)
(i) any properly functioning diagnostic equipment, special tools, current signage, and other equipment and machinery that:
(A) the franchisee purchased:
(I) from the franchisor within five years before termination, cancellation, or nonrenewal; and
(II) at the franchisor's request or because of the franchisor's requirement; and
(B) are no longer usable in the normal course of the franchisee's ongoing business, as the franchisee reasonably determines; and
(ii) for a repurchase price equal to 100% of the original net cost that the franchisee paid, plus any applicable shipping charges and sales taxes.
(4) A recreational vehicle franchisor shall pay the franchisee all money due under Subsection (3) within 30 days after the franchisor's receipt of the repurchased items.