(1) |
This section applies only to a recreational vehicle franchisee‘s termination, cancellation, or nonrenewal of:
(a) |
a recreational vehicle franchise; or |
(b) |
a recreational vehicle line-make. |
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(2) |
(a) |
A recreational vehicle franchisee may, at any time and with or without good cause, terminate, cancel, or not renew its recreational vehicle franchise agreement or a recreational vehicle line-make by giving 30 days’ prior written notice to the recreational vehicle franchisor. |
(b) |
A franchisee has the burden of showing that a termination, cancellation, or nonrenewal is for good cause. |
(c) |
Good cause for a franchisee’s termination, cancellation, or nonrenewal is considered to exist if:
(i) |
the franchisor is convicted of or enters a plea of nolo contendere to a felony; |
(ii) |
the business operations of the franchisor are:
(B) |
closed for 10 consecutive business days, unless the closing is due to an act of God, a strike, a labor difficulty, or another cause over which the franchisor has no control; |
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(iii) |
the franchisor makes a misrepresentation that materially and adversely affects the business relationship with the recreational vehicle franchisee; |
(iv) |
a material violation of this chapter is not cured within 30 days after the franchisee gives 30 days’ written notice of the violation to the recreational vehicle franchisor; or |
(v) |
the recreational vehicle franchisor:
(B) |
declares bankruptcy; or |
(C) |
makes an assignment for the benefit of creditors. |
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(3) |
If the franchisee terminates, cancels, or does not renew the recreational vehicle franchise agreement or line-make for cause, the franchisor shall, at the franchisee’s election and within 45 days after termination, cancellation, or nonrenewal, repurchase:
(a) |
(i) |
all new, unaltered recreational vehicles, including demonstrators, that the franchisee acquired from the franchisor within 18 months before the date of the termination, cancellation, or nonrenewal; and |
(ii) |
for a repurchase price equal to 100% of the original net invoice cost, including transportation, reduced by:
(A) |
any applicable rebates and discounts to the franchisee; and |
(B) |
the cost to repair any damage to a repurchased recreational vehicle, if the vehicle is damaged after delivery to the franchisee but before repurchase occurs; |
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(b) |
(i) |
all undamaged accessories and proprietary parts sold by the recreational vehicle franchisor to the franchisee within one year before termination, cancellation, or nonrenewal, if accompanied by the original invoice; and |
(ii) |
for a repurchase price equal to 100% of the original net invoice cost, plus an additional 5% of the original net invoice cost to compensate the franchisee for packing and shipping the returned accessories and parts to the franchisor; and |
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(c) |
(i) |
any properly functioning diagnostic equipment, special tools, current signage, and other equipment and machinery that:
(A) |
the franchisee purchased:
(I) |
from the franchisor within five years before termination, cancellation, or nonrenewal; and |
(II) |
at the franchisor’s request or because of the franchisor’s requirement; and |
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(B) |
are no longer usable in the normal course of the franchisee’s ongoing business, as the franchisee reasonably determines; and |
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(ii) |
for a repurchase price equal to 100% of the original net cost that the franchisee paid, plus any applicable shipping charges and sales taxes. |
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(4) |
A recreational vehicle franchisor shall pay the franchisee all money due under Subsection (3) within 30 days after the franchisor’s receipt of the repurchased items. |
Enacted by Chapter 33, 2010 General Session