Arizona Laws 28-4453. Franchise; notice of intention
A. If a franchisor seeks to enter into a franchise establishing an additional new motor vehicle dealership of the same line-make, the franchisor shall, and the franchisee may at any time, file with the director a notice of intention to enter into a franchise for additional representation of the same line-make.
Terms Used In Arizona Laws 28-4453
- Area of responsibility: means the area surrounding an individual dealer that the factory designates as that dealer's individual primary geographic territory for the purpose of marketing, promoting, selling and leasing new motor vehicles. See Arizona Laws 28-4301
- Community: means the relevant market area. See Arizona Laws 28-4301
- Director: means the director of the department of transportation. See Arizona Laws 28-101
- 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
- Population: means the population according to the most recent United States decennial census. See Arizona Laws 1-215
- Writing: includes printing. See Arizona Laws 1-215
B. If the franchisor intends to establish an additional new motor vehicle dealership, the director shall send notice within five days of receipt to all franchisees of the same line-make in the community and to all other franchises located within ten miles of the proposed dealership by the shortest street route, if located outside the community, who are then engaged in the business of offering to sell or selling the same line-make. In counties with a population of less than two hundred thousand persons, the notice additionally shall be sent to all dealers located within twenty miles of the proposed new franchise as determined by the shortest street route. The director shall address copies of notices to the principal place of business of the franchisees.
C. The relocation or the reopening of a dealership within two years of the closing within the area of responsibility assigned in the franchise is not considered an additional dealership for purposes of this chapter, provided that the location of the replacement dealership is within one mile of the previous location.
D. If a franchisor seeks to terminate, cancel or not renew a franchise, the franchisor shall notify the franchisee and the director in writing by certified mail or personal delivery. The notice shall contain all of the following:
1. A statement of the franchisor’s intention to terminate, cancel or not renew the franchise.
2. A statement of the reasons for the termination, cancellation or nonrenewal.
3. The date on which the termination, cancellation or nonrenewal is effective.
E. This section does not apply to an intended termination, cancellation or nonrenewal of a franchise that the franchisee elects voluntarily, pursuant to a plan established by the franchisor, to submit to binding arbitration.