Management

  • FRANCHISE LAW ROUNDUP: Relocation

    Monday, December 19, 2016 | Holly Wagner

    Please refer to Governing Statutes for more information. “Not specified” indicates that an issue is not addressed specifically in the particular statutes. Please send any updates to editors@dealernews.com

    ALABAMA – Not specified

    ALASKA – A manufacturer may not require, coerce, or attempt to coerce a new motor vehicle dealer to change the location of the new motor vehicle dealership or to make any substantial alterations to the new motor vehicle dealership premises or facilities if the change or alteration would be unreasonable or if there is not a sufficient supply of new motor vehicles to justify the expansion in light of the current market and economic conditions.

    ARIZONA – Not allowed as a condition of business.

    ARKANSAS – Reasonable and justifiable in light of the current and reasonably foreseeable projections of economic conditions, financial expectations and the motor vehicle dealer’s market. In a denial of franchise relocation, the burden of proof is on the manufacturer or distributor to show it has good cause for granting the new franchise, except when an existing franchisee initiated the relocation.

    CALIFORNIA – Not specified

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