No franchisor may terminate or refuse to continue any franchise unless the franchisor has first established in a hearing held under the provisions of chapter 1-26, that:

(1) The franchisor has cause for termination or noncontinuance; and

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(2) Upon termination or noncontinuance, another franchise in the same line/make will become effective in the same community without diminution of the snowmobile service formerly provided or that the community cannot be reasonably expected to support such a dealership.

Source: SL 1994, ch 248, § 2.