§ 322A.2 — Discontinuing franchise

Iowa § 322A.2

• Jurisdiction: Iowa
• Title VIII: TRANSPORTATION
• Ch. 322A: MOTOR VEHICLE FRANCHISERS

Text

1. Unless otherwise provided in subsection 2, notwithstanding the terms, provisions,
or conditions of any agreement or franchise, a franchiser shall not terminate or refuse to
continue any franchise unless the franchiser has first established, in a hearing held under
the provisions of this chapter, that both of the following apply:
a. The franchiser has good cause for termination or noncontinuance.
b. Upon termination or noncontinuance, another franchise in the same line-make will
become effective in the same community, without diminution of the motor vehicle service
formerly provided, or that the community cannot be reasonably expected to support such a
dealership.
2. A franchiser may terminate a franchise for a particular line-make if the franchiser
discontinues that line-make and a franchiser may terminate a franchise if the franchisee’s
license as a motor vehicle dealer is revoked pursuant to the provisions of chapter 322.

Legislative History

[C71, 73, 75, 77, 79, 81, §322A.2]