13-35-307 - Franchisor's repurchase obligations upon termination or noncontinuation of franchise.
13-35-307. Franchisor's repurchase obligations upon termination ornoncontinuation of franchise.
(1) (a) Except as provided in Subsection (1)(b), if a franchise is terminated or notcontinued by the franchisor or franchisee, the franchisor shall pay the franchisee:
(i) the franchisee's cost of new, undamaged, and unsold powersport vehicles in thefranchisee's inventory acquired from the franchisor or another franchisee of the same line-makerepresenting both the current model year at the time of termination or noncontinuation and theimmediately prior model year vehicles;
(ii) any charges made by the franchisor for distribution, delivery, or taxes;
(iii) the franchisee's cost of any accessories added on a vehicle;
(iv) the cost of new, undamaged, and unsold supplies, parts, and accessories as set forthin the franchisor's catalog at the time of termination or noncontinuation less all allowances paidor credited to the franchisee by the franchisor;
(v) except as provided in Subsection (1)(c), the fair market value, but not less than thefranchisee's depreciated acquisition cost, of each undamaged sign owned by the franchisee thatbears a common name, trade name, or trademark of the franchisor if acquisition of the sign wasrecommended or required by the franchisor;
(vi) the fair market value, but not less than the franchisee's depreciated acquisition cost,of all special tools, equipment, and furnishings acquired from the franchisor or sources approvedby the franchisor that were recommended or required by the franchisor and are in good andusable condition; and
(vii) the cost of transporting, handling, packing, and loading powersport vehicles,supplies, parts, accessories, signs, special tools, equipment, and furnishings.
(b) The franchisor may deduct the sum of all allowances paid or credited to thefranchisee by the franchisor from the amount owed under Subsection (1)(a).
(c) If a franchisee has a sign with multiple manufacturers listed, the franchisor shall payonly for its pro rata portion of the sign described in Subsection (1)(a)(v).
(2) The franchisor shall pay the franchisee the amounts specified in Subsection (1) within90 days after the tender of the property to the franchisor if the franchisee has:
(a) clear title to the property; or
(b) the manufacturer's statement of origin.
(3) If repurchased inventory and equipment are subject to a security interest, thefranchisor may make payment jointly to the franchisee and to the holder of the security interest.
Amended by Chapter 261, 2009 General Session