13-35-302. Issuance of additional franchises -- Relocation of existing franchisees.
(1) (a) Except as provided in Subsection (2), a franchisor shall comply with Subsection
(1)(b) if the franchisor seeks to:
(i) enter into a franchise establishing a powersport vehicle dealership within a relevant
market area where the same line-make is represented by another franchisee; or
(ii) relocate an existing powersport vehicle dealership.
(b) (i) If a franchisor seeks to take an action listed in Subsection (1)(a), prior to taking the
action, the franchisor shall in writing notify the advisory board and each franchisee in that
line-make in the relevant market area that the franchisor intends to take an action described in
Subsection (1)(a).
(ii) The notice required by Subsection (1)(b)(i) shall:
(A) specify the good cause on which it intends to rely for the action; and
(B) be delivered by registered or certified mail or by any form of reliable delivery
through which receipt is verifiable.
(c) Within 45 days of receiving notice required by Subsection (1)(b), any franchisee that
is required to receive notice under Subsection (1)(b) may protest to the advisory board the
establishing or relocating of the dealership. When a protest is filed, the department shall inform
the franchisor that:
(i) a timely protest has been filed;
(ii) a hearing is required;
(iii) the franchisor may not establish or relocate the proposed dealership until the
advisory board has held a hearing; and
(iv) the franchisor may not establish or relocate a proposed dealership if the executive
director determines that there is not good cause for permitting the establishment or relocation of
the dealership.
(d) If multiple protests are filed under Subsection (1)(c), hearings may be consolidated to
expedite the disposition of the issue.
(2) Subsection (1) does not apply to a relocation that is:
(a) less than one mile from the existing location of the franchisee's dealership; and
(b) within the same county.
(3) For purposes of this section:
(a) relocation of an existing franchisee's dealership in excess of one mile from its
existing location is considered the establishment of an additional franchise in the line-make of
the relocating franchise;
(b) the reopening in a relevant market area of a dealership that has not been in operation
for one year or more is considered the establishment of an additional powersport vehicle
dealership; and
(c) (i) except as provided in Subsection (3)(c)(ii), the establishment of a temporary
additional place of business by a powersport vehicle franchisee is considered the establishment of
an additional powersport vehicle dealership; and
(ii) the establishment of a temporary additional place of business by a powersport vehicle
franchisee is not considered the establishment of an additional powersport vehicle dealership if
the powersport vehicle franchisee is participating in a trade show where three or more powersport
vehicle dealers are participating.
Amended by Chapter 268, 2005 General Session
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Last revised: Thursday, May 28, 2009