Utah Code 13-35-306 v2. Evidence to be considered in determining cause to relocate existing franchisee or establish a new franchised dealership
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In determining whether a franchisor has established good cause for relocating an existing franchisee or establishing a new franchised dealership for the same line-make in a given relevant market area, the executive director shall consider:
(1) the amount of business transacted by other franchisees of the same line-make in that relevant market area, as compared to business available to the franchisees;
Terms Used In Utah Code 13-35-306 v2
- Dealership: means a site or location in this state:(2)(a) at which a franchisee conducts the business of a new powersport vehicle dealer; and(2)(b) that is identified as a new powersport vehicle dealer's principal place of business for registration purposes under Section 13-35-105. See Utah Code 13-35-102
- Executive director: means the executive director of the Department of Commerce. See Utah Code 13-35-102
- Franchisee: means a person with whom a franchisor has agreed or permitted, in writing or in practice, to purchase, sell, or offer for sale new powersport vehicles manufactured, produced, represented, or distributed by the franchisor. See Utah Code 13-35-102
- Franchisor: means a person who has, in writing or in practice, agreed with or permits a franchisee to purchase, sell, or offer for sale new powersport vehicles manufactured, produced, represented, or distributed by the franchisor, and includes:
(7)(a)(i) the manufacturer or distributor of the new powersport vehicles;(7)(a)(ii) an intermediate distributor;(7)(a)(iii) an agent, officer, or field or area representative of the franchisor; and(7)(a)(iv) a person who is affiliated with a manufacturer or a representative or who directly or indirectly through an intermediary is controlled by, or is under common control with the manufacturer. See Utah Code 13-35-102- Line-make: means the powersport vehicles that are offered for sale, lease, or distribution under a common name, trademark, service mark, or brand name of the franchisor, or manufacturer of the powersport vehicle. See Utah Code 13-35-102
- Powersport vehicle: means :
(12)(a)(i) an all-terrain type I, type II, or type III vehicle "ATV" defined in Section 41-22-2;(12)(a)(ii) a snowmobile as defined in Section 41-22-2;(12)(a)(iii) a motorcycle as defined in Section 41-1a-102;(12)(a)(iv) a personal watercraft as defined in Section 73-18-2;(12)(a)(v) except as provided in Subsection (12)(b), a motor-driven cycle as defined in Section 41-6a-102; or(12)(a)(vi) a moped as defined in Section 41-6a-102. See Utah Code 13-35-102- Relevant market area: means :
(13)(a) for a powersport dealership in a county that has a population of less than 225,000:(13)(a)(i) the county in which the powersport dealership exists or is to be established or relocated; and(13)(a)(ii) in addition to the county described in Subsection (13)(a)(i), the area within a 15-mile radius from the site of the existing, new, or relocated dealership; or(13)(b) for a powersport dealership in a county that has a population of 225,000 or more, the area within a 10-mile radius from the site of the existing, new, or relocated dealership. See Utah Code 13-35-102(2) the investment necessarily made and obligations incurred by other franchisees of the same line-make in that relevant market area in the performance of their part of their franchisee agreements;(3) the permanency of the existing and proposed investment;(4) whether it is injurious or beneficial to the public welfare or public interest for an additional franchise to be established; and(5) whether the franchisees of the same line-make in that relevant market area are providing adequate service to consumers for the powersport vehicles of the line-make, which shall include the adequacy of:(5)(a) the powersport vehicle sale and service facilities;(5)(b) equipment;(5)(c) supply of vehicle parts; and(5)(d) qualified service personnel.