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 – Good cause, six months’ notice and cure. Enumerated compensation requirements specifically exclude motorcycle dealers.
ALASKA – Good cause, 60 days’ notice and cure.
ARIZONA – Good cause, seven legal elements.
ARKANSAS – Just cause, 11 legal elements.
CALIFORNIA – Good cause, seven legal elements, compensation requirements.
COLORADO – Just cause, six legal elements; termination stayed immediately upon filing protest; prevailing party may recover legal costs.
CONNECTICUT – Good cause, 11 legal elements.
DELAWARE – Good cause, 180 days’ notice and cure, compensation requirements.
FLORIDA – Good cause, 120 days’ notice and cure, compensation obligations.
GEORGIA – Good cause; 180 days’ notice and cure for sales deficiencies; compensation requirements. Manufacturer may not “cancel a franchise or to take any adverse action against a dealer based in whole or in part on the failure of the dealer to meet the reasonable performance criteria established by the franchisor in light of existing circumstances, including but not limited to current and forecasted economic conditions, or when that failure is due to the failure of the franchisor to supply, within a reasonable period of time, new motor vehicles ordered by or allocated to the dealer.”
HAWAII – Good cause, seven legal elements.
IDAHO – Good cause and good faith.
ILLINOIS – “Good cause” means facts establishing commercial reasonableness in lawful or privileged competition and business practices as defined at common law.” Notice and cure, compensation requirements.
INDIANA – Good cause, 90 days’ notice; performance standard must be “statistically valid, reliable and reasonable.”
IOWA – Just, reasonable and lawful cause.
KANSAS – Good cause, 90 days’ notice, up to one year to sure, compensation obligations.
KENTUCKY – Compensation requirements.
LOUISIANA – “Just cause and due regard to the equities of the motorcycle or all-terrain vehicle dealer,” compensation requirements.
MAINE – Good cause, 90 days’ notice, compensation requirements.
MARYLAND – Not specified
MASSACHUSETTS – Good cause; 180 days’ notice and cure, settlement conference required in disputes, compensation requirements, right to sue and recover attorney costs.
MICHIGAN – Good cause, seven legal elements, 90-180 days’ notice and cure, compensation requirements.
MINNESOTA – Good cause, six months’ notice and cure, compensation requirements (80E.09) even with voluntary termination.
MISSISSIPPI – Good cause, compensation requirements.
MISSOURI – Good cause, eight legal elements; compensation requirements. Manufacturer may not “terminate, cancel or refuse to continue any franchise, directly or indirectly through the actions of the franchisor, unless such new motorcycle or all-terrain vehicle franchisee substantially defaults in the performance of such franchisee’s reasonable and lawful obligations under such franchisee’s franchise”
MONTANA – Good cause, eight legal elements. Compensation requirements.
NEBRASKA – Good cause, eight legal elements; compensation requirements; attorney fees and costs to prevailing dealer.
NEVADA – Good cause, seven legal elements; compensation requirements; attorney fees and costs to dealer who prevails in a protest; triple damages for violations.
NEW HAMPSHIRE – Good cause; 180 days’ notice and cure (exceptions for ORVs and snowmobiles); compensation obligations; prevailing dealer may recover fees and costs.
NEW JERSEY – Good cause; compensation requirements. Dealer to be allowed to continue parts and service for five years after termination.
NEW MEXICO – Due cause, six legal elements. “Due cause” means a material breach by a dealer, due to matters within the dealer’s control, of a lawful provision of a franchise or selling agreement. As used in this subsection, “material breach” means a contract violation that is substantial and significant. Compensation requirements.
NEW YORK – Due cause, 180 days’ notice and cure. “The determination of due cause shall be that there exists a material breach by a new motor vehicle dealer of a reasonable and necessary provision of a franchise if the breach is not cured within a reasonable time after written notice of the breach has been received from the manufacturer or distributor.”
NORTH CAROLINA – 180 days’ notice and cure for sales issues; 90 days’ to 12 months’ notice for other reasons; compensation requirements.
NORTH DAKOTA – Compensation requirements for voluntary and involuntary termination.
OHIO – Good cause, nine legal elements, compensation requirements. Termination for sales deficiency requires “reasonable opportunity to present evidence demonstrating the effect of local market conditions that materially and adversely affected the franchisee’s performance.”
OKLAHOMA – Good cause, six months’ notice and cure, prevailing dealer gets attorney fees and costs, compensation requirements.
OREGON – Good cause, 90-day notice requirement, compensation requirements.
PENNSYLVANIA – Just cause. A material breach by a vehicle dealer or distributor, due to matters within the dealer’s or distributor’s control, of a reasonable and necessary provision of an agreement if the breach is not cured within a reasonable time after written notice of the breach has been received from the manufacturer or distributor.
RHODE ISLAND – Just cause, six months’ notice and cure, compensation requirements for voluntary and involuntary termination.
SOUTH CAROLINA – Due cause, compensation requirements (reduced for voluntary terminations).
SOUTH DAKOTA – Good cause, 90 days’ notice, 60 days’ cure for sales deficiencies. “Good cause means failure by a vehicle dealer to substantially comply with essential and reasonable requirements imposed upon the vehicle dealer by the vehicle dealership agreement, if the requirements are not different from those requirements imposed on other similarly situated vehicle dealers by their terms.”
TENNESSEE – 90 days’ notice, 60 days’ cure. “No supplier, directly or through an officer, agent or employee, may terminate, cancel, fail to renew or substantially change the competitive circumstances of a retail agreement without good cause. ‘Good cause’ means failure by a dealer to comply with requirements imposed upon the dealer by the retail agreement if the requirements are not different from those imposed on other dealers similarly situated in this state.” Compensation requirements apply. Manufacturer may not “terminate, cancel or fail to renew or substantially change the competitive circumstances of the retail agreement based on the results of a natural disaster, including a sustained drought or high unemployment in the dealership market area, labor dispute or other similar circumstances beyond the dealer’s control.”
TEXAS – Good cause, seven legal elements; compensation requirements may apply to voluntary terminations.
UTAH – Good cause, 11 legal elements, compensation requirements in Session Law Ch. 262.
VERMONT – Good cause, six months’ notice and cure for sales issues, compensation requirements. “For purposes of this act, good cause for terminating, canceling, or failing to renew a franchise shall be limited to failure by the franchisee to substantially comply with those requirements imposed upon the franchisee by the franchise as set forth in subdivision (c)(1) of this section.”
VIRGINIA – Good cause, seven legal elements, compensation requirements. “A discontinuation, cancellation, or non-renewal of a franchise agreement is unfair if it is not clearly permitted by the franchise agreement, is not undertaken in good faith, is not undertaken for good cause, or is based on an alleged breach of the franchise agreement that is not in fact a material and substantial breach.”
WASHINGTON – 90 to 180 days’ notice, good cause, four legal elements, compensation requirements.
WEST VIRGINIA – Good cause, eight legal elements. “A discontinuance, cancellation or nonrenewal is unfair if it is: (1) Not clearly permitted by the dealer agreement; (2) Not undertaken for good cause; or (3) Is based on an alleged breach of the franchise agreement which is not in fact a material and substantial breach.” Compensation requirements. Dealer prevailing in protest action may recover treble damages and costs.
WISCONSIN – 90 days’ notice, 60 days’ cure for sales deficiencies. Specific compensation requirements for powersports dealers.
WYOMING – Compensation requirements. Good cause for termination, cancellation or nonrenewal of a franchise shall include but not be limited to: (i) Failure by the licensee to comply with a provision of the franchise, which is both reasonable and of material significance to the franchise relationship, provided that the dealer has been notified in writing of the failure within 180 days prior to termination, cancellation or nonrenewal; (ii) Failure of the licensee to comply with reasonable performance criteria established by the manufacturer if the licensee was apprised by the manufacturer in writing of the failure and: (A) The notification stated that notice was provided of failure of performance pursuant to this section; (B) The licensee was afforded a reasonable opportunity, for a period of not less than six (6) months, to comply with the criteria; and (C) The licensee did not demonstrate substantial compliance with the performance criteria of the manufacturer during such period.