13-14-306 - Evidence to be considered in determining cause to relocate or establish a new franchised dealership.
13-14-306. Evidence to be considered in determining cause to relocate or establish anew franchised dealership.
In determining whether a franchisor has established good cause for relocating an existingfranchisee or establishing a new franchised dealership for the same line-make in a given relevantmarket area, the advisory board and the executive director shall consider:
(1) the amount of business transacted by other franchisees of the same line-make in thatrelevant market area, as compared to business available to the franchisees;
(2) the investment necessarily made and obligations incurred by other franchisees of thesame line-make in that relevant market area in the performance of their part of their franchiseeagreements;
(3) the permanency of the existing and proposed investment;
(4) whether it is injurious or beneficial to the public welfare or public interest for anadditional franchise to be established;
(5) whether the franchisees of the same line-make in that relevant market area areproviding adequate service to consumers for the motor vehicles of the line-make, which shallinclude the adequacy of:
(a) the motor vehicle sale and service facilities;
(b) equipment;
(c) supply of vehicle parts; and
(d) qualified service personnel; and
(6) whether the relocation or establishment would cause any material negative economiceffect on a dealer of the same line-make in the relevant market area.
Amended by Chapter 362, 2008 General Session