322A.2 - DISCONTINUING FRANCHISE.
322A.2 DISCONTINUING FRANCHISE. Notwithstanding the terms, provisions or conditions of any agreement or franchise, no franchiser shall terminate or refuse to continue any franchise unless the franchiser has first established, in a hearing held under the provisions of this chapter, that: 1. The franchiser has good cause for termination or noncontinuance, and 2. Upon termination or noncontinuance, another franchise in the same line-make will become effective in the same community, without diminution of the motor vehicle service formerly provided, or that the community cannot be reasonably expected to support such a dealership; provided, however, a franchiser may terminate a franchise for a particular line-make if the franchiser discontinues that line-make and a franchiser may terminate a franchise if the franchisee's license as a motor vehicle dealer is revoked pursuant to the provisions of chapter 322.
Section History: Early Form [C71, 73, 75, 77, 79, 81, § 322A.2]