CHAPTER 5. SUCCESSION TO FRANCHISE BY DESIGNATED FAMILY MEMBERS
IC 9-23-5
Chapter 5. Succession to Franchise by Designated Family
Members
IC 9-23-5-1
Application of chapter
Sec. 1. This chapter does not apply to a franchise if:
(1) the franchise is granted to a dealer other than a new motor
vehicle dealer; and
(2) the franchise or other written document filed with the
franchisor includes the franchisee's designation of a successor
to the franchise who is not the:
(A) franchisee's spouse;
(B) child of the franchisee;
(C) grandchild of the franchisee;
(D) spouse of a:
(i) child; or
(ii) grandchild;
of the franchisee;
(E) parent of the franchisee; or
(F) sibling of the franchisee.
As added by P.L.2-1991, SEC.11. Amended by P.L.118-2001, SEC.5;
P.L.1-2002, SEC.43.
IC 9-23-5-2
Prerequisites for succession to franchise
Sec. 2. A designated family member of a deceased or
incapacitated franchisee may succeed the franchisee under the
existing franchise if:
(1) the manufacturer or distributor determines, subject to
section 3 of this chapter, that the existing franchise should be
honored; and
(2) the designated family member complies with section 4 of
this chapter.
As added by P.L.2-1991, SEC.11.
IC 9-23-5-3
Good cause refusal to honor franchise
Sec. 3. A manufacturer or distributor may refuse to honor the
existing franchise for a designated family member only for good
cause.
As added by P.L.2-1991, SEC.11.
IC 9-23-5-4
Qualification of designated family member to succeed franchise
Sec. 4. To qualify to succeed the franchisee under the existing
franchise, a designated family member must do all of the following:
(1) Within one hundred twenty (120) days after the franchisee's
death or disability, give the manufacturer or distributor written
notice of the designated family member's intention to succeed
to the franchise.
(2) Agree to be bound by all terms and conditions of the
existing franchise.
(3) Meet the criteria generally applied at the time of the
franchisee's death or incapacity by the manufacturer or
distributor in qualifying new motor vehicle dealers as
franchisees.
(4) If requested by the manufacturer or distributor, supply
promptly personal and financial data that is reasonably
necessary for the manufacturer or distributor to determine if the
existing franchise should be honored.
As added by P.L.2-1991, SEC.11.
IC 9-23-5-5
Notice of refusal to honor franchise; service
Sec. 5. Within sixty (60) days after receipt of:
(1) the notice from a designated family member under section
4(1) of this chapter; or
(2) requested personal or financial data under section 4(4) of
this chapter;
a manufacturer or distributor who determines that good cause exists
for refusing to honor the existing franchise shall serve notice upon
the designated family member of the determination.
As added by P.L.2-1991, SEC.11.
IC 9-23-5-6
Notice of refusal to honor franchise; contents
Sec. 6. The notice required under section 5 of this chapter must
state the following:
(1) The specific grounds for the manufacturer's or distributor's
determination.
(2) The date on which the existing franchise will be
discontinued.
As added by P.L.2-1991, SEC.11.
IC 9-23-5-7
Date for discontinuance
Sec. 7. The date for discontinuance under section 6 of this chapter
must not be earlier than ninety (90) days after the date the notice is
served.
As added by P.L.2-1991, SEC.11.
IC 9-23-5-8
Untimely or noncomplying notice; continuance of franchise
Sec. 8. If notice of the manufacturer's determination is not served
within the time periods specified in section 5 of this chapter and does
not comply with section 6 of this chapter, the franchise must be
honored and is not subject to discontinuance under this chapter.
As added by P.L.2-1991, SEC.11.