NYS Franchise Law 2013

highlights

• A dealer’s Relevant Market Area (RMA) is defined as a 6 mile radius surrounding the dealership in counties of 100,000 or more population, and a 10 mile radius surrounding the dealership in counties with less than 100,000 in population. • Allows an existing dealer who receives such a notice to challenge the proposed addition or relocation. • The franchisor must show good cause for a new point or relocation within an existing dealer’s RMA. • The statute contains a list of criteria to be considered in determining whether there is good cause for the addition or relocation including the existing dealer’s investment and the impact on the consumer. • There are specific exceptions to the protest right to provide flexibility for a dealer that is moving within its RMA and/or further from other existing dealers. Franchise Modification – Section 463(2)(ff) page 28 • A franchisor may not “modify” the dealer’s franchise unless it has provided at least 90 days notice and the proposed modification is fair and not prohibited. • A modification is unfair if it would adversely alter the rights, obligations, investment or return on investment of the dealer under the existing franchise. • The dealer may protest the proposed modification, and the franchisor has the burden of proof to establish the proposed modification is fair and not prohibited.

Consent to Program Participation – Section 463(2)(hh)

page 29 • The franchisor shall not require a dealer to contribute monetarily to a program or promotion without first receiving the dealer’s written consent to participate in the program or promotion.

6