Management

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 – Dealer Agreement or Franchise: The written contract between any new motor vehicle manufacturer and any new motor vehicle dealer which purports to fix the legal rights and liabilities of the parties to such agreement or contract, and pursuant to which the dealer purchases and resells the franchise product or leases or rents the dealership premises.

ALASKA – “Franchise” means a written arrangement for a definite or indefinite period in which a manufacturer, distributor, or motor vehicle wholesaler grants to a motor vehicle dealer a license, sales and service agreement, or contract of any kind to use a trade name, service mark, or related characteristic, and in which there is a community of interest in the wholesale or retail marketing of related motor vehicles or services. The terms and conditions in an agreement between a manufacturer and a new motor vehicle dealer in this state, including a motor vehicle franchise agreement, that are inconsistent with the law of this state do not have any force or effect in this state.

ARIZONA – “Franchise” means a written arrangement for a definite or indefinite period in which a manufacturer, distributor, or motor vehicle wholesaler grants to a motor vehicle dealer a license, sales and service agreement, or contract of any kind to use a trade name, service mark, or related characteristic, and in which there is a community of interest in the wholesale or retail marketing of related motor vehicles or services. The terms and conditions in an agreement between a manufacturer and a new motor vehicle dealer in this state, including a motor vehicle franchise agreement, that are inconsistent with the law of this state do not have any force or effect in this state.

ARKANSAS – “Franchise” means one or more contracts between a franchised dealer as franchisee and either a manufacturer or a distributor, importer, second-stage manufacturer, or converter as franchiser under which:

• (A) The franchisee is granted the right to sell, service, or sell and service new motor vehicles manufactured or distributed by the franchiser;
• (B) The franchisee as an independent business is a component of the franchiser’s distribution system;
• (C) The franchise is substantially associated with the franchiser’s trademark, trade name, or commercial symbol;
• (D) The franchisee’s business is substantially reliant on the franchiser for a continued supply of motor vehicles, parts, or accessories for the conduct of its business; or
• (E) (i) Any right, duty, or obligation granted or imposed by this chapter is affected; (ii) “Franchise” includes a written communication from a franchiser to a franchisee by which a duty is imposed upon the franchisee.

CALIFORNIA – A “franchise” is a written agreement between two or more persons having all of the following conditions:

• (1) A commercial relationship of definite duration or continuing indefinite duration.
• (2) The franchisee is granted the right to offer for sale or lease, or to sell or lease at retail new motor vehicles or new trailers subject to identification pursuant to Sec. 5014.1 manufactured or distributed by the franchisor or the right to perform authorized warranty repairs and service, or the right to perform any combination of these activities.
• (3) The franchisee constitutes a component of the franchisor’s distribution system.
• (4) The operation of the franchisee’s business is substantially associated with the franchisor’s trademark, trade name, advertising, or other commercial symbol designating the franchisor.
• (5) The operation of a portion of the franchisee’s business is substantially reliant on the franchisor for a continued supply of new vehicles, parts, or accessories. Does not include standalone authorized service facilities.

COLORADO – “Franchise” means the authority to sell or service and repair powersports vehicles of a designated line-make granted through a sales, service, and parts agreement with a manufacturer, distributor, or manufacturer representative.

CONNECTICUT – “Franchise” means an oral or written agreement or arrangement in which

• (1) a franchisee is granted the right to engage in the business of offering, selling or distributing goods or services under a marketing plan or system prescribed in substantial part by a franchisor, provided nothing contained herein shall be deemed to create a franchisor-franchisee relationship between the grantor and grantee of a lease, license or concession to sell goods or services upon or appurtenant to the premises of the grantor, which premises are occupied by the grantor primarily for its own independent merchandising activities; and
• (2) the operation of the franchisee’s business pursuant to such plan or system is substantially associated with the franchisor’s trademark, service mark, trade name, logotype, advertising or other commercial symbol designating the franchisor or its affiliate, and includes any agreement between a manufacturer, refiner or producer and a distributor, wholesaler or jobber, between a manufacturer, refiner or producer and a retailer, or between a distributor, wholesaler or jobber and a retailer.

DELAWARE – “Franchise” means the written agreement or contract between any new motor vehicle manufacturer and any new motor vehicle dealer which purports to fix the legal rights and liabilities of the parties to such agreement or contract, and pursuant to which the dealer purchases and resells the franchise product or leases or rents the dealership premises.

FLORIDA – “Franchised motor vehicle dealer” means any person who engages in the business of repairing, servicing, buying, selling, or dealing in motor vehicles pursuant to an agreement as defined in s. 320.60(1).

GEORGIA – Defined as “the written agreement or contract between any franchisor and any dealer which purports to fix the legal rights and liabilities of the parties to such agreement or contract and pursuant to which the dealer purchases and resells motor vehicles or leases or rents the dealership facilities.”

HAWAII – “Franchise” or “franchise agreement” means any contract or agreement between a dealer and a manufacturer or distributor that authorizes the dealer to engage in the business of selling or purchasing any particular make or makes of new motor vehicles or motor vehicle parts manufactured or distributed by the manufacturer or distributor, or that establishes rights or obligations, or both, relating to the dealer’s new motor vehicle operation, including agreements relating to dealership facilities or site control.

IDAHO – “Franchise” means a sales, service and parts agreement or any other contract or agreement between a dealer and a manufacturer of new vehicles or its distributor or factory branch by which the dealer is authorized to engage in  the business of selling any specified make or makes of new vehicles.

ILLINOIS – An oral or written arrangement for a definite or indefinite period in which a manufacturer, distributor or wholesaler grants to a motor vehicle dealer a license to use a trade name, service mark, or related characteristic, and in which there is a community of interest in the marketing of motor vehicles or services related thereto at wholesale, retail, leasing or otherwise.

INDIANA – Not specified

IOWA – “Franchise” means a contract between two or more persons when all of the following conditions are included: (1) A commercial relationship of definite duration or continuing indefinite duration is involved; (2) The franchisee is granted the right to offer and sell motor vehicles manufactured or distributed by the franchiser; (3) The franchisee, as an independent business, constitutes a component of the franchiser’s distribution system; (4) The operation of the franchisee’s business is substantially associated with the franchiser’s trademark, service mark, trade name, advertising, or other commercial symbol designating the franchiser; (5) The operation of the franchisee’s business is substantially reliant on the franchiser for the continued supply of motor vehicles, parts and accessories.

KANSAS – “Franchise agreement” means any contract or franchise or any other terminology used to describe the contractual relationship between first or second stage manufacturers, distributors and vehicle dealers, by which:

• (1) A right is granted one party to engage in the business of offering, selling or otherwise distributing goods or services under a marketing plan or system prescribed in substantial part by the other party, and in which there is a community of interest in the marketing of goods or services at wholesale or retail, by lease, agreement or otherwise; and
• (2) the operation of the grantee’s business pursuant to such agreement is substantially associated with the grantor’s trademark, service mark, trade name, logotype, advertising or other commercial symbol designating the grantor or an affiliate of the grantor.

KENTUCKY – “Franchise” means the agreement or contract between any new motor vehicle manufacturer, written or otherwise, and any new motor vehicle dealer that purports to fix the legal rights and liabilities of the parties to an agreement or contract, and pursuant to which the dealer purchases and resells the franchise product. Editor’s Note: See more at:http://codes.findlaw.com/ky/title-xvi-motor-vehicles/ky-rev-st-sect-190-010.html#sthash.25I30zic.dpuf

LOUISIANA – “Franchise” means any written contract or selling agreement between a motor vehicle or recreational products dealer, a motor vehicle lessor, or a specialty vehicle dealer and a manufacturer, motor vehicle lessor franchisor, or converter of a new motor vehicle or specialty vehicle or its distributor or factory branch by which the motor vehicle or recreational products dealer, motor vehicle lessor, or specialty vehicle dealer is authorized to engage in the business of selling or leasing the specific makes, models, or classifications of new motor vehicles, recreational products, or specialty vehicles marketed or leased by the manufacturer, motor vehicle lessor franchisor, or converter and designated in the franchise agreement or any addendum thereto. For purposes of this Chapter, any written modification, amendment, or addendum to the original franchise agreement, which changes the rights and obligations of the parties to the original franchise agreement, shall constitute a new franchise agreement, effective as of the date of the modification, amendment, or addendum.

MAINE – “Franchise” means an oral or written arrangement in which there is a community of interest in the marketing of personal sports mobiles or services related to personal sports mobiles at wholesale, retail, leasing or otherwise. The franchise may be for a definite or indefinite time period in which a manufacturer, distributor or wholesaler grants to a personal sports mobile dealer a license to use a trade name, service mark or related characteristic.

MARYLAND – No franchise definition. Specifies “dealer” as a person engaged in the business of selling at retail construction, farm, utility, or industrial equipment, implements, machinery, attachments, outdoor power equipment, or repair parts.

MASSACHUSETTS – ”Franchise agreement,” an oral or written arrangement for a definite or indefinite period in which a manufacturer or distributor grants to a motor vehicle dealer a license to use a trade name, service mark, or related characteristic, and in which there is a community of interest in the marketing of new motor vehicles or services related thereto at wholesale, retail, leasing, or otherwise.

MICHIGAN – “Dealer agreement” means an agreement or contract in writing between a distributor and a new motor vehicle dealer, between a manufacturer and a distributor or a new motor vehicle dealer, or between an importer and a distributor or a new motor vehicle dealer, that purports to establish the legal rights and obligations of the parties to the agreement or contract and under which the dealer purchases and resells new motor vehicles and conducts service operations.

MINNESOTA – “Franchise” means the written agreement or contract between any new motor vehicle manufacturer and any new motor vehicle dealer which grants to the dealer the right to market motor vehicles and which purports to fix the legal rights and liabilities of the parties to the agreement or contract.

MISSISSIPPI – “Franchise” or “franchise agreement” means a written contract or agreement between a motor vehicle dealer and a manufacturer or its distributor or factory branch by which the motor vehicle dealer is authorized to engage in the business of selling or leasing the specific makes, models or classifications of new motor vehicles marketed or leased by the manufacturer and designated in the agreement or any addendum to such agreement.

MISSOURI – A written arrangement or contract for a definite or indefinite period, in which a person grants to another person a license to use, or the right to grant to others a license to use, a trade name, trademark, service mark, or related characteristics, in which there is a community of interest in the marketing of goods or services, or both, at wholesale or retail, by agreement, lease or otherwise, and in which the operation of the franchisee’s business with respect to such franchise is substantially reliant on the franchisor for the continued supply of franchised new motorcycles or all-terrain vehicles, parts and accessories for sale at wholesale or retail.

MONTANA – “Franchise” means a contract and any agreed-to amendments between or among two or more persons when all of the following conditions are included:

• (a) a commercial relationship of definite duration or continuing indefinite duration is involved;
• (b) the franchisee is granted the right to (i) offer, sell, and service in this state new motor vehicles manufactured or distributed by the franchisor; or (ii) service motor vehicles pursuant to the terms of a franchise and a manufacturer’s warranty;
• (c) the franchisee, as an independent and separate business, constitutes a component of the franchisor’s distribution system; and
• (d) the operation of the franchisee’s business is substantially reliant on the franchisor for the continued supply of new motor vehicles, parts, and accessories.

NEBRASKA – Franchise means a contract between two or more persons when all of the following conditions are included:

• (1) A commercial relationship of definite duration or continuing indefinite duration is involved;
• (2) The franchisee is granted the right to offer and sell motor vehicles manufactured or distributed by the franchisor;
• (3) The franchisee, as an independent business, constitutes a component of the franchisor’s distribution system;
• (4) The operation of the franchisee’s business is substantially associated with the franchisor’s trademark, service mark, trade name, advertising, or other commercial symbol designating the franchisor; and
• (5) The operation of the franchisee’s business is substantially reliant on the franchisor for the continued supply of motor vehicles, parts, and accessories. (Editor’s note: See more at:http://codes.findlaw.com/ne/chapter-60-motor-vehicles/ne-rev-st-sect-60-1401-19.html#sthash.tfYEqFWv.dpuf

NEVADA – “Franchise” means a written agreement between a manufacturer or distributor and a dealer by which:

• (1) A commercial relationship of definite duration or continuing indefinite duration is established;
• (2) The dealer is granted the right to offer and sell at retail new vehicles, other than mopeds, farm tractors or special mobile equipment;
• (3) The dealer constitutes a component of a distribution system for new vehicles;
• (4) The operation of the dealer’s business is substantially associated with the trademark, trade name, advertising or other commercial symbol designating a manufacturer or distributor; and
• (5) The operation of a portion of the dealer’s business is substantially reliant on the manufacturer or distributor for a continued supply of new vehicles, parts and accessories.

NEW HAMPSHIRE – “Franchise” means one or more oral or written agreements under or by which:

• (a) The franchisee is granted the right to sell new motor vehicles or component parts manufactured or distributed by the franchisor or the right to service motor vehicles or component parts manufactured or distributed by the manufacturer but does not include any person who has an agreement with a manufacturer or distributer to perform service only on fleet, government, or rental vehicles;
• (b) The franchisee as an independent business is a component of the franchisor’s distribution or service system;
• (c) The franchisee is granted the right to be substantially associated with the franchisor’s trademark, trade name or commercial symbol;
• (d) The franchisee’s business is substantially reliant for the conduct of its business on the franchisor for a continued supply or service of motor vehicles, parts, and accessories; or
• (e) Any right, duty, or obligation granted or imposed under this chapter is affected.

NEW JERSEY – “Franchise” means a written arrangement for a definite or indefinite period, in which a person grants to another person a license to use a trade name, trade mark, service mark, or related characteristics, and in which there is a community of interest in the marketing of goods or services at wholesale, retail, by lease, agreement, or otherwise.

NEW MEXICO – The provisions of this act shall apply to all persons, manufacturers, representatives, distributors and dealers and to all written or oral agreements between a manufacturer, distributor or representative with a motor vehicle dealer including, but not limited to, the franchise offering, the franchise agreement, sales of goods, services or advertising, leases or mortgages of real or personal property, promises to pay, security interest, pledges, insurance contracts, advertising contracts, construction or installation contracts, servicing contracts and all other such agreements in which the manufacturer, distributor or representative has any direct or indirect interest.

NEW YORK – A written agreement for a definite or indefinite period in which a manufacturer or distributor grants to a franchised motor vehicle dealer a license to use a trade name, service mark or related characteristic, and in which there is a community of interest in the marketing of motor vehicles or services related thereto at wholesale, retail, by lease or otherwise and/or pursuant to which a franchised motor vehicle dealer purchases and resells or offers (as agent, principal, or otherwise) products associated with the name or mark of related components of the franchise.

NORTH CAROLINA – A written agreement or contract between any new motor vehicle manufacturer, and any new motor vehicle dealer which purports to fix the legal rights and liabilities of the parties to such agreement or contract, and pursuant to which the dealer purchases and resells the franchised product or leases or rents the dealership premises.

NORTH DAKOTA – “‘Franchise’ means any contract or agreement between a motor vehicle dealer and a manufacturer of a new motor vehicle or its distributor or factory branch by which the dealer is authorized to engage in the business of selling any specified make or makes of new motor vehicles; that purports to fix the legal rights and liabilities of the parties to such agreement, contract, or understanding.”

OHIO – “Franchise” means any written agreement, contract, or understanding between any motor vehicle manufacturer or remanufacturer engaged in commerce and any motor vehicle dealer that purports to fix the legal rights and liabilities of the parties to such agreement, contract, or understanding.

OKLAHOMA – “Dealer agreement” means either an oral or written agreement or arrangement for a definite or indefinite period between a dealer and a supplier that provides for the rights and obligations of the parties with respect to the purchase or sale of equipment or repair parts. Notwithstanding the foregoing, if a dealer has more than one business location covered by the same dealer agreement, the requirements of the Fair Practices of Equipment Manufacturers, Distributors, Wholesalers and Dealers Act will be applied to the repurchase of a dealer’s inventory at a particular location upon the closing of such location, unless the closing of the location occurs without the permission of the supplier.

OREGON – “Franchise” means a contract or agreement under which:

• (a) The franchisee is granted the right to sell, lease and exchange new motor vehicles manufactured, distributed or imported by the franchisor;
• (b) The franchisee’s business is an independent business operating as a component of a distribution or marketing system prescribed in substantial part by the franchisor;
• (c) The franchisee’s business is substantially associated with the trademark, trade name, commercial symbol or advertisements designating the franchisor or the products distributed by the franchisor;
• (d) The franchisee’s business is substantially reliant on the franchisor for a continued supply of motor vehicles, parts and accessories;
• (e) The franchisee is granted the right to perform warranty repairs authorized by the franchisor; and
• (f) The franchisee is granted the right to sell, install and exchange parts, equipment and accessories manufactured, distributed or imported by the franchisor for use in or on motor vehicles.

PENNSYLVANIA – “Franchise”: The written agreement between any new vehicle manufacturer or distributor and any new vehicle dealer which purports to fix the legal rights and liabilities of the parties to such agreement, and pursuant to which the dealer purchases, resells, services, separately services and performs warranty repairs on the franchise product or leases or rents the dealership premises.

RHODE ISLAND – “Franchise” means the agreement or contract between any new motor vehicle manufacturer, written or otherwise, and any new motor vehicle dealer which purports to fix the legal rights and liabilities of the parties to that agreement or contract, and pursuant to which the dealer purchases and resells the franchise product or leases or rents the dealership premises.

SOUTH CAROLINA – “Franchise” means the written agreement or contract between any new motorcycle manufacturer, and any new motorcycle dealer which purports to fix the legal rights and liabilities of the parties to such agreement or contract, and pursuant to which the dealer purchases and resells the franchised product or leases or rents the dealership premises.

SOUTH DAKOTA – “Franchise,” a written or oral agreement or contract between a franchisor and franchisee which fixes the legal rights and liabilities of the parties to such agreement or contract.

TENNESSEE – “Franchise” or “franchise agreement” means a written or oral agreement for a definite or indefinite period, in which a person grants to another person authority to use a trade name, trademark, service mark or related characteristic within an exclusive territory, or to sell or distribute goods or services, within an exclusive territory, at wholesale, retail, by lease agreement or otherwise; provided, that a franchise is not created by a lease, license or concession granted by a dealer to sell goods or furnish services on or from premises that are occupied by the dealer-grantor primarily for its own merchandising activities;

TEXAS – “Franchise” means one or more contracts between a franchised dealer as franchisee and a manufacturer or a distributor as franchisor, including a written communication from a franchisor to a franchisee in which a duty is imposed on the franchisee, under which:

• (A) The franchisee is granted the right to sell and service new motor vehicles manufactured or distributed by the franchisor or only to service motor vehicles under the contract and a manufacturer’s warranty;
• (B) The franchisee is a component of the franchisor’s distribution system as an independent business;
• (C) The franchisee is substantially associated with the franchisor’s trademark, tradename, and commercial symbol;
• (D) The franchisee’s business substantially relies on the franchisor for a continued supply of motor vehicles, parts, and accessories; or
• (E) any right, duty, or obligation granted or imposed by this chapter is affected.

Editor’s note: See more at http://codes.findlaw.com/tx/occupations-code/occ-sect-2301-002.html#sthash.NOeBM2JZ.dpuf

UTAH – “Franchise” or “franchise agreement” means a written agreement, for a definite or indefinite period, in which:

• (a) a person grants to another person a license to use a trade name, trademark, service mark, or related characteristic; and
• (b) a community of interest exists in the marketing of new powersport vehicles, new powersport vehicle parts, and services related to the sale or lease of new powersport vehicles at wholesale or retail.

VERMONT – “Franchise” means all agreements and contracts between any new motor vehicle manufacturer, written or otherwise, and any new motor vehicle dealer which relate to the operation of the franchise and purport to fix the legal rights and liabilities of the parties to such agreements or contracts, including agreements pursuant to which the dealer purchases and resells the franchise product, performs warranty and other service on the manufacturer’s products, leases or rents the dealership premises or agreements concerning the dealership premises, or construction or renovation of the dealership premises.

VIRGINIA – “Franchise” means a written contract or agreement between two or more persons whereby one person, the franchisee, is granted the right to engage in the business of offering and selling, offering and delivering pursuant to a lease, servicing, or offering, selling, and servicing new motor vehicles of a particular line-make or late model or used motor vehicles of a particular line-make manufactured or distributed by the grantor of the right, the franchisor, and where the operation of the franchisee’s business is substantially associated with the franchisor’s trademark, trade name, advertising, or other commercial symbol designating the franchisor, the motor vehicle or its manufacturer or distributor. “Franchise” includes any severable part or parts of a franchise agreement which separately provides for selling and servicing different line-makes of the franchisor.

WASHINGTON – “Franchise” means one or more agreements, whether oral or written, between a manufacturer and a new motorsports vehicle dealer, under which the new motorsports vehicle dealer is authorized to sell, service, and repair new motorsports vehicles, parts, and accessories under a common name, trade name, trademark, or service mark of the manufacturer.

WEST VIRGINIA –  “Dealer agreement” means the franchise, agreement or contract in writing between a manufacturer, distributor and a new motor vehicle dealer which purports to establish the legal rights and obligations of the parties to the agreement or contract with regard to the purchase, lease or sale of new motor vehicles, accessories, service and sale of parts for motor vehicles.

WISCONSIN – “Franchise” means the right to buy, sell, distribute or service a line make of motor vehicles that is granted to a motor vehicle dealer or distributor by a manufacturer, importer or distributor.

WYOMING – “Franchise or dealer’s selling agreement,” hereinafter referred to as the “sales and services agreement,” means a contract or agreement between a vehicle dealer and a manufacturer or its distributor or factory branch by which the dealer is authorized to engage in the business of selling any specified make of new vehicles.