13-35-304 - Hearing regarding termination, relocation, or establishment of franchises.
13-35-304. Hearing regarding termination, relocation, or establishment offranchises.
(1) (a) Within 10 days of receiving an application from a franchisee under Subsection13-35-301(3) challenging its franchisor's right to terminate or not continue a franchise, or anapplication under Subsection 13-35-302(1) challenging the establishment or relocation of afranchise, the executive director shall:
(i) enter an order designating the time and place for the hearing; and
(ii) send a copy of the order by certified or registered mail, with return receipt requested,or by any form of reliable delivery through which receipt is verifiable to:
(A) the applicant;
(B) the franchisor; and
(C) if the application involves the establishment of a new franchise or the relocation ofan existing dealership, to all franchisees in the relevant market area engaged in the business ofoffering to sell or lease the same line-make.
(b) A copy of an order mailed under Subsection (1)(a) shall be addressed to thefranchisee at the place where the franchisee's business is conducted.
(2) Any person who can establish an interest in the application may intervene as a partyto the hearing, whether or not that person receives notice.
(3) Any person may appear and testify on the question of the public interest in thetermination or noncontinuation of a franchise or in the establishment of an additional franchise.
(4) (a) (i) Any hearing ordered under Subsection (1) shall be conducted no later than 120days after the application for hearing is filed.
(ii) A final decision on the challenge shall be made by the executive director no later than30 days after the hearing.
(b) Failure to comply with the time requirements of Subsection (4)(a) is considered adetermination that the franchisor acted with good cause or, in the case of a protest of a proposedestablishment or relocation of a dealer, that good cause exists for permitting the proposedadditional or relocated new motor vehicle dealer, unless:
(i) the delay is caused by acts of the franchisor or the additional or relocating franchisee;or
(ii) the delay is waived by the parties.
(5) The franchisor has the burden of proof to establish that under this chapter it should begranted permission to:
(a) terminate or not continue the franchise;
(b) enter into a franchise agreement establishing an additional franchise; or
(c) relocate the dealership of an existing franchisee.
Amended by Chapter 268, 2005 General Session