Texas Occupations Code 2301.481 – Property Use Agreement
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(a) A manufacturer, distributor, or representative may not require that a dealer enter into a property use agreement as a condition of the manufacturer, distributor, or representative:
(1) entering into a franchise;
(2) approving a franchised dealer’s application to add a line-make;
(3) approving a franchised dealer’s application to relocate a franchise; or
(4) approving a sale or transfer of a dealer, dealership, or franchise.
(b) The following provisions in a property use agreement are void and unenforceable:
(1) a limitation on the franchised dealer’s ability to add a line-make; or
(2) a provision that binds a franchised dealer’s successor.
Terms Used In Texas Occupations Code 2301.481
- Person: includes corporation, organization, government or governmental subdivision or agency, business trust, estate, trust, partnership, association, and any other legal entity. See Texas Government Code 311.005
- Property: means real and personal property. See Texas Government Code 311.005
(c) A property use agreement expires on the earlier of:
(1) the date provided by the property use agreement; or
(2) the termination of the franchise between the parties to the property use agreement.
(d) This section applies to a subsidiary of, or a person controlled by, a manufacturer, distributor, or representative.