Bill > SB115

This bill amends the Franchise Termination Act to clarify its scope and add new protections for dealers, which are businesses authorized to sell specific equipment like farm tractors and construction machinery. Key changes include expanding the definition of "dealer" and "inventory" to cover a broader range of equipment, and introducing a definition for "good cause" which is now required for a supplier to terminate a franchise agreement. The bill mandates that suppliers must provide dealers with at least 180 days' written notice before terminating a franchise, detailing the reasons for termination and giving the dealer 60 days to fix any issues, unless the termination is for specific serious offenses outlined in the bill. It also establishes a 60-day timeframe for suppliers to approve or deny a dealer's request to sell their business or ownership interest, with the request being automatically approved if no response is received. Furthermore, the bill invalidates any attempt to waive its provisions, any clauses in franchise agreements that choose the law of another state, or any clauses requiring dealers to pay a supplier's attorney fees, and allows dealers to sue suppliers for damages and attorney fees if the act is violated.

https://www.nmlegis.gov/Legislation/Legislation?chamber=S&legtype=B&legno=115&year=26