§ 322D.2 — Franchisee’s rights to payment

Iowa § 322D.2

• Jurisdiction: Iowa
• Title VIII: TRANSPORTATION
• Ch. 322D: FARM IMPLEMENT, MOTORCYCLE, AUTOCYCLE, SNOWMOBILE, AND ALL-TERRAIN VEHICLE FRANCHISES

Text

1. A franchisee who enters into a written franchise with a franchiser to maintain a stock
of farm implements, motorcycles, autocycles, all-terrain vehicles, snowmobiles, or related
parts or attachments has the following rights to payment, at the option of the franchisee, if
the franchise is terminated:
a. One hundred percent of the net cost of new, unused, complete farm implements,
motorcycles, autocycles, all-terrain vehicles, snowmobiles, or related attachments, which
were purchased from the franchiser. In addition, the franchisee shall have a right of payment
for transportation charges on the farm implements, motorcycles, autocycles, all-terrain
vehicles, or snowmobiles, which have been paid by the franchisee.
b. Eighty-five percent of the net prices of any repair parts, including superseded parts,
which were purchased from the franchiser and held by the franchisee on the date that the
franchise terminated.
c. Fivepercentofthenetpricesofpartsresoldunderparagraph“b”forhandling, packing,
and loading of the parts. However, this payment shall not be due to the franchisee if the
franchiser elects to perform the handling, packing, and loading.
2. Upon receipt of the payments due under subsection 1, the franchiser is entitled to
possession of and title to the farm implements, motorcycles, autocycles, all-terrain vehicles,
snowmobiles, or related parts or attachments.
3. The cost of farm implements, motorcycles, autocycles, all-terrain vehicles,
snowmobiles, or related attachments and the price of repair parts shall be determined
by reference to the franchiser’s price list or catalog in effect at the time of the franchise
termination.