Bill > S2693

This bill amends the "Franchise Practices Act" to strengthen protections for motor vehicle franchisees (dealers) against motor vehicle franchisors (manufacturers). Key provisions include prohibiting franchisors from forcing franchisees to waive jury trials, accept specific jurisdictions for disputes, or agree to mandatory arbitration unless voluntarily agreed upon at the time a dispute arises. It also clarifies that franchisors cannot impose unreasonable performance standards, facilities, or financial requirements on franchisees, nor can they unfairly disapprove the transfer of a franchise based on the proposed buyer not being a natural person. The bill mandates that franchisors must compensate franchisees for all reasonable costs incurred due to product recalls and prohibits arbitrary performance evaluation formulas. It introduces new restrictions on franchisors regarding the establishment of service facilities, requiring notice to nearby franchisees, and prohibits requiring franchisees to release claims for outstanding financial obligations without allowing exceptions. Furthermore, the bill prevents franchisors from forcing franchisees to order or purchase vehicles or accessories not ordered, or to accept delivery of unordered items, and prohibits retaliatory actions if a franchisee refuses. It also ensures fair pricing and allocation of vehicles to all franchisees of the same make and restricts the sharing of customer information. The bill adds protections against franchisors interfering with how franchisees use their facilities, demanding interests in franchisee property, or forcing relocation or facility modifications without demonstrating financial viability and reasonable return on investment for the franchisee. It also limits franchisors' ability to require franchisees to maintain working capital beyond reasonable operational needs and prohibits imposing conditions on franchise transfers beyond those already established by law. Finally, the bill revises provisions related to franchise termination, repurchase obligations for unsold inventory and parts upon termination, and the process for establishing new or relocated franchises, including expanding the "relevant market area" for such considerations and strengthening notice and protest rights for existing franchisees.