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Issues related to remodeling an automobile dealership

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In 2017, the Florida legislature passed a law that changed the relationship between automobile dealerships and the manufacturers that provide them with vehicles and products. Although it impacted many aspects of how these entities may interact in the world of car sales, one area that it had significant effect upon was how often dealerships should undertake remodels of their facilities.

In practically any type of business, there is a push to stay relevant and to put forth the best possible face toward consumers. The automobile industry is no different and, as such, dealerships have found themselves undertaking multi-million dollar projects to improve the aesthetics and appearances of their facilities. Taking on these projects is undoubtedly expensive and can affect the profits of an auto business.

Under Florida’s relatively new dealership law, a dealership owner does not have to perform these invasive and costly improvements more than once every ten years. They cannot be compelled to engage in improvements through their manufacturer agreements or contracts for franchises. Dealerships, therefore, have more autonomy to put their money into improvement projects on their own terms and schedules.

When preparing to open an automobile dealership, it is important that an individual knows exactly what types of standards and practices they will be held to by their chosen industry and the laws of the state. It can be a good first step for those in the planning stages of opening their own dealerships to discuss their ideas with attorneys who work in the auto dealership field.