13-35-302 - Issuance of additional franchises -- Relocation of existing franchisees.
13-35-302. Issuance of additional franchises -- Relocation of existing franchisees.
(1) (a) Except as provided in Subsection (2), a franchisor shall comply with Subsection(1)(b) if the franchisor seeks to:
(i) enter into a franchise establishing a powersport vehicle dealership within a relevantmarket area where the same line-make is represented by another franchisee; or
(ii) relocate an existing powersport vehicle dealership.
(b) (i) If a franchisor seeks to take an action listed in Subsection (1)(a), prior to taking theaction, the franchisor shall in writing notify the advisory board and each franchisee in thatline-make in the relevant market area that the franchisor intends to take an action described inSubsection (1)(a).
(ii) The notice required by Subsection (1)(b)(i) shall:
(A) specify the good cause on which it intends to rely for the action; and
(B) be delivered by registered or certified mail or by any form of reliable deliverythrough which receipt is verifiable.
(c) Within 45 days of receiving notice required by Subsection (1)(b), any franchisee thatis required to receive notice under Subsection (1)(b) may protest to the advisory board theestablishing or relocating of the dealership. When a protest is filed, the department shall informthe franchisor that:
(i) a timely protest has been filed;
(ii) a hearing is required;
(iii) the franchisor may not establish or relocate the proposed dealership until theadvisory board has held a hearing; and
(iv) the franchisor may not establish or relocate a proposed dealership if the executivedirector determines that there is not good cause for permitting the establishment or relocation ofthe dealership.
(d) If multiple protests are filed under Subsection (1)(c), hearings may be consolidated toexpedite the disposition of the issue.
(2) Subsection (1) does not apply to a relocation that is:
(a) less than one mile from the existing location of the franchisee's dealership; and
(b) within the same county.
(3) For purposes of this section:
(a) relocation of an existing franchisee's dealership in excess of one mile from itsexisting location is considered the establishment of an additional franchise in the line-make ofthe relocating franchise;
(b) the reopening in a relevant market area of a dealership that has not been in operationfor one year or more is considered the establishment of an additional powersport vehicledealership; and
(c) (i) except as provided in Subsection (3)(c)(ii), the establishment of a temporaryadditional place of business by a powersport vehicle franchisee is considered the establishment ofan additional powersport vehicle dealership; and
(ii) the establishment of a temporary additional place of business by a powersport vehiclefranchisee is not considered the establishment of an additional powersport vehicle dealership ifthe powersport vehicle franchisee is participating in a trade show where three or more powersportvehicle dealers are participating.
Amended by Chapter 268, 2005 General Session