1. In determining whether good cause has been established for terminating or not continuing a franchise, the department of inspections, appeals, and licensing shall take into consideration the existing circumstances, including, but not limited to:

 a. Amount of business transacted by the franchisee.
 b. Investment necessarily made and obligations incurred by the franchisee in the performance of the franchisee’s part of the franchise.
 c. Permanency of the investment.
 d. Whether it is injurious to the public welfare for the business of the franchisee to be disrupted.
 e. Whether the franchisee has adequate motor vehicle service facilities, equipment, parts and qualified service personnel to reasonably provide consumer care for the motor vehicles sold at retail by the franchisee and any other motor vehicles of the same line-make.
 f. Whether the franchisee refuses to honor warranties of the franchiser to be performed by the franchisee, provided that the franchiser reimburses the franchisee for such warranty work performed by the franchisee.
 g. Except as provided in section 322A.11, failure by the franchisee to substantially comply with those requirements of the franchise which are determined by the department of inspections, appeals, and licensing to be reasonable and material.
 h. Except as provided in section 322A.11, bad faith by the franchisee in complying with those terms of the franchise which are determined by the department of inspections, appeals, and licensing to be reasonable and material.
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Terms Used In Iowa Code 322A.15

  • Consumer: means the purchaser or lessee, other than for purposes of lease or resale, of a new or previously untitled motor vehicle, or any other person entitled by the terms of the warranty to enforce the obligations of the warranty during the duration of the lemon law rights period. See Iowa Code 322G.2
  • Department: means the state department of transportation. See Iowa Code 321H.2
  • Department: means the state department of transportation. See Iowa Code 322A.1
  • Franchise: includes a separate written agreement between the franchisee and the franchiser which materially affects the franchise, whether entered into prior to the date of the franchise, contemporaneously with the franchise, or subsequent to the date of the franchise. See Iowa Code 322A.1
  • Franchisee: means a person who receives motor vehicles from the franchiser under a franchise and who offers and sells such motor vehicles to the general public. See Iowa Code 322A.1
  • Franchiser: means a person who manufactures or distributes motor vehicles and who may enter into a franchise as hereinafter defined. See Iowa Code 322A.1
  • Vehicle: means any vehicle as defined in chapter 321. See Iowa Code 321H.2
  • Warranty: means any written warranty issued by the manufacturer; or any affirmation of fact or promise made by the manufacturer, excluding statements made by the dealer, in connection with the sale or lease of a motor vehicle to a consumer, which relates to the nature of the material or workmanship and affirms or promises that the material or workmanship is free of defects or will meet a specified level of performance. See Iowa Code 322G.2
 2. Good cause does not include a realignment, relocation, or reduction of dealerships.
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