Section 407.819

Title XXVI TRADE AND COMMERCE

Chapter 407

Effective - 28 Aug 2010   

  407.819.  Successor manufacturer, restrictions on line-make franchise offers — fair market value calculation. — 1.  Notwithstanding any provision in a franchise to the contrary, no successor manufacturer shall, for a period of two years from the date of acquisition of control by that successor manufacturer of a line-make from a predecessor manufacturer, offer a franchise to any person for a line-make of a predecessor manufacturer in any portion of the relevant market area in which the predecessor manufacturer previously cancelled, terminated, noncontinued, failed to renew, or otherwise ended a franchise agreement with a franchisee who had a franchise facility in that relevant market area without first offering the franchise to the former franchisee at no cost, unless:

  (1)  Within sixty days of the former franchisee's cancellation, termination, noncontinuance, or nonrenewal, the predecessor manufacturer had consolidated the line-make with another of its line-makes for which the predecessor manufacturer had a franchisee with a then-existing franchise facility in that relevant market area;

  (2)  The successor manufacturer has paid the former franchisee the fair market value of the former franchisee's motor vehicle dealership in accordance with this section;

  (3)  The predecessor manufacturer successfully terminated the former franchisee under subdivision (5) of section 407.825.

  2.  For purposes of this section, the fair market value of a former franchisee's motor vehicle dealership shall be calculated as of the date of the following that yields the highest fair market value:  the date the predecessor manufacturer announced the action that resulted in the cancellation, termination, noncontinuance, or nonrenewal; the date the action that resulted in cancellation, termination, noncontinuance, or nonrenewal became final; or the date twelve months prior to the date that the predecessor manufacturer announced the action that resulted in the cancellation, termination, noncontinuance, or nonrenewal.

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(L. 2010 H.B. 2198)