§ 13-35-302 — Issuance of additional franchises -- Relocation of existing franchisees.

(1) (1)(a) Except as provided in Subsection (2), a franchisor shall comply with Subsection (1)(b) if the franchisor seeks to:
(1)(a)(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
(1)(a)(ii) relocate an existing powersport vehicle dealership.
(1)(b) (1)(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 executive director 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).
(1)(b)(ii) The notice required by Subsection (1)(b)(i) shall:
(1)(b)(ii)(A) specify the good cause on which it intends to rely for the action; and
(1)(b)(ii)(B) be delivered by registered or certified mail or by any form of reliable delivery through which receipt is verifiable.
(1)(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 executive director the establishing or relocating of the dealership. When a protest is filed, the department shall inform the franchisor that:
(1)(c)(i) a timely protest has been filed;
(1)(c)(ii) a hearing is required;
(1)(c)(iii) the franchisor may not establish or relocate the proposed dealership until the executive director has held a hearing; and
(1)(c)(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.
(1)(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 the relocation of a franchisee's dealership:
(2)(a) less than two miles from the existing location of the franchisee's dealership; or
(2)(b) farther away from all powersport dealerships that are:
(2)(b)(i) of the same line-make as the franchisee's dealership; and
(2)(b)(ii) in the franchisee's existing dealership's relevant market area.
(3) For purposes of this section:
(3)(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;
(3)(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
(3)(c) (3)(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
(3)(c)(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.

Legislative History

Amended by Chapter 507, 2024 General Session