Iowa Code 322A.16 – Additional guidelines
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In determining whether good cause has been established for entering into an additional franchise for the same line-make, the department of inspections, appeals, and licensing shall take into consideration the existing circumstances, including, but not limited to:
1. Amount of business transacted by other franchisees of the same line-make in that community.
Terms Used In Iowa Code 322A.16
- Community: means the franchisee's area of responsibility as stipulated in the franchise. See Iowa Code 322A.1
- 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
- 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
- Vehicle: means any vehicle as defined in chapter 321. See Iowa Code 321H.2
2. Investment necessarily made and obligations incurred by other franchisees of the same line-make, in that community, in the performance of their part of their franchises.
3. Permanency of the investment.
4. Effect on the retail motor vehicle business as a whole in that community.
5. Whether it is injurious to the public welfare for an additional franchise to be established.
6. Whether the franchisees of the same line-make in that community are providing adequate consumer care for the motor vehicles of the line-make which shall include the adequacy of motor vehicle service facilities, equipment, supply of parts and qualified service personnel.