Arizona Laws 28-4452. Limitations; franchise establishment, cancellation, termination or nonrenewal
A. Notwithstanding the terms, provisions or conditions of an agreement or franchise, a franchisor shall not cancel, terminate or refuse to renew a franchise unless the franchisor has good cause for termination or nonrenewal.
Terms Used In Arizona Laws 28-4452
- Community: means the relevant market area. See Arizona Laws 28-4301
- Franchise: means a contract between two or more persons if all of the following conditions are included:
(a) A commercial relationship of definite duration or continuing indefinite duration is involved. See Arizona Laws 28-4301
- Franchisee: means a person who both:
(a) Receives new motor vehicles from the franchisor under a franchise. See Arizona Laws 28-4301
- Franchisor: means a person who both:
(a) Manufactures or distributes new motor vehicles. See Arizona Laws 28-4301
- Line-make: means those motor vehicles that are offered for sale, lease or distribution under a common name, trademark, service mark or brand name of the manufacturer of those same motor vehicles. See Arizona Laws 28-4301
- Motor vehicle: means an automobile, motor bus, motorcycle, truck or truck tractor or any other self-propelled vehicle, trailer or semitrailer. See Arizona Laws 28-4301
- New motor vehicle: means a motor vehicle, other than a used motor vehicle, that is held either for:
(a) Sale by the franchisee who first acquired the vehicle from the manufacturer or distributor of the vehicle. See Arizona Laws 28-4301
- Statute: A law passed by a legislature.
B. A franchisor shall not enter into a franchise for the purpose of establishing an additional new motor vehicle dealership in a community in which the same line-make is then represented, unless there is good cause for the additional new motor vehicle dealership under the franchise and unless it is in the public interest.
C. Notwithstanding any other statute, a franchisor may initiate proceedings under this article to establish a new franchise before naming the particular franchisee and before designating or purchasing the particular site of the new franchise.