322A.11  Condition barring change in franchise.

Notwithstanding the terms, provisions or conditions of any agreement or franchise, the following shall not constitute good cause for the termination or noncontinuation of a franchise, or for entering into a franchise for the establishment of an additional dealership in a community for the same line-make:

1.  The sole fact that franchiser desires further penetration of the market.

2.  The change of ownership of the franchisee's dealership or the change of executive management of the franchisee's dealership, unless the franchiser, having the burden of proof, proves that such change of ownership or executive management will be substantially detrimental to the distribution of franchiser's motor vehicles in the community.

3.  The fact that the franchisee refused to purchase or accept delivery of any motor vehicle or vehicles, parts, accessories or any other commodity or service not ordered by the franchisee.

4.  The fact that the dealership moved to another facility and location within the dealership's community which are equal to or superior to the dealership's former location and facility or the fact that the dealership added an additional line-make to the dealership if the dealership's facility is adequate to accommodate the additional line-make.

5.  The fact that the dealership does not meet an index or standard established by the franchiser, unless the franchiser proves that the failure of the dealership to meet the index or standard will be substantially detrimental to the distribution of the franchiser's motor vehicles in the community.

Section History: Early form

  [C71, 73, 75, 77, 79, 81, § 322A.11]

Section History: Recent form

  98 Acts, ch 1075, §27; 2000 Acts, ch 1232, §26

Internal References

  Referred to in § 322A.12, 322A.15

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