Iowa § 322A.11 Condition barring change in franchise

Iowa Statutes

§ 322A.11 — Condition barring change in franchise

Iowa § 322A.11

Title VIIITRANSPORTATION

Ch. 322AMOTOR VEHICLE FRANCHISERS

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Bluebook

Iowa Code § 322A.11 (2026).

Text

Notwithstanding the terms, provisions, or conditions of any agreement or franchise, the following shall not be considered facts supporting a finding of good cause for the termination or noncontinuation of a franchise, or for entering into a franchise for the establishment of an additional dealership in a community for the same line-make:

1.The sole fact that franchiser desires further penetration of the market.

2.The change of ownership of the franchisee’s dealership or the change of executive management of the franchisee’s dealership, unless the franchiser, having the burden of proof, proves that such change of ownership or executive management will be substantially detrimental to the distribution of the franchiser’s motor vehicles in the community and that good cause for the terminatio

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Notwithstanding the terms, provisions, or conditions of any agreement or franchise, the
following shall not be considered facts supporting a finding of good cause for the termination
or noncontinuation of a franchise, or for entering into a franchise for the establishment of an
additional dealership in a community for the same line-make:
1. The sole fact that franchiser desires further penetration of the market.
2. The change of ownership of the franchisee’s dealership or the change of executive
management of the franchisee’s dealership, unless the franchiser, having the burden of
proof, proves that such change of ownership or executive management will be substantially
detrimental to the distribution of the franchiser’s motor vehicles in the community and that
good cause for the termination or noncontinuation of the franchise or for the establishment
of an additional dealership otherwise exists.
3. The fact that the franchisee refused to purchase or accept delivery of any motor
vehicle or vehicles, parts, accessories or any other commodity or service not ordered by the
franchisee.
4. The fact that the dealership moved to another facility and location within the
dealership’s community which are equal to or superior to the dealership’s former location
and facility or the fact that the dealership added an additional line-make to the dealership if
the dealership’s facility is adequate to accommodate the additional line-make.
5. The fact that the dealership does not meet an index or standard established by the
franchiser, unless the franchiser proves that the failure of the dealership to meet the index or
standardwillbesubstantiallydetrimentaltothedistributionofthefranchiser’smotorvehicles
inthecommunityandthatgoodcausefortheterminationornoncontinuationofthefranchise
or for the establishment of an additional dealership otherwise exists.