§ 9-32-13-27 — Canceling, terminating, or refusing to renew franchise; renewal, replacement, or succeeding franchise

Indiana § 9-32-13-27

• Jurisdiction: Indiana
• Title 9: MOTOR VEHICLES
• Art. 32: DEALER SERVICES
• Ch. 13: Unfair Practices

Text

(a) It is an unfair practice for a manufacturer
or distributor to do the following:
(1) Cancel or terminate a franchise of a franchisee, or fail or
refuse to extend or renew a franchise upon the franchise's
expiration, without good cause and notice to the franchisee by
certified mail, return receipt requested:
(A) at least ninety (90) days before the cancellation or
termination; or
(B) at least ten (10) days before the cancellation or termination
if any of the following apply:
(i) The franchisee has abandoned business operations or
otherwise failed to conduct sales and service operations
during regular business hours for at least seven (7)
consecutive business days, unless the abandonment or closure
is due to an act of God or another act over which the
franchisee has no control.
(ii) The franchisee or another operator of the franchise has
been convicted of or pled guilty to an offense punishable by
at least one (1) year of imprisonment.
(iii) The dealer files for bankruptcy or enters into
receivership.
(iv) The license of the dealer is revoked under IC 9-32-11 or
IC 9-32-16.
(v) The dealer commits fraud.
(2) Offer a renewal, replacement, or succeeding franchise that
substantially changes or modifies the sales and service
obligations, facilities standards, capital requirements, or other
terms of the original franchise or agreement of a franchisee
without notice to the franchisee by certified mail, return receipt
requested, at least ninety (90) days before the expiration or
termination of the original franchise or agreement.
(3) Terminate a dealer for the dealer's failure to meet a
performance standard that is not statistically valid, reliable, and
reasonable.
Notice provided under this subsection must include a detailed
statement setting forth the specific grounds for the proposed action.
(b) For purposes of subsection (a)(1), the following do not constitute
good cause, provided that no unfair practice is committed under IC 9-32-13-12 and no transfer, sale, or assignment is made in violation of
IC 9-32-13-22:
(1) A change of ownership or executive management of a
dealership.
(2) Requiring the appointment of an individual to an executive
management position in a dealership.
(3) Ownership of, investment in, participation in the management
of, or holding a license for the sale of any line make of new motor
vehicles by a franchisee or an owner of an interest in a franchise.
(c) Good cause exists under subsection (a)(1) with respect to all
franchisees of a line make if the manufacturer of the line make
permanently discontinues the manufacture or assembly of the line
make.
(d) Not more than thirty (30) days after a franchisee receives notice
under subsection (a), the franchisee may protest the proposed action by
filing a petition for review with the office of administrative law
proceedings.
(e) If a franchisee makes a timely and proper request for review
under subsection (d) to protest a proposed action, the office of
administrative law proceedings shall appoint an administrative law
judge and schedule an administrative hearing. The administrative
hearing must comply with IC 4-21.5. The administrative law judge's
order must include a determination of whether good cause exists for the
proposed action.

Legislative History

As added by P.L.152-2013, SEC.3. Amended by P.L.174-2016, SEC.106; P.L.92-2025, SEC.5.