This blog recently discussed what a franchise is and it is equally important for franchisees and auto dealers to understand what a franchise is as to also understand how the legal process can help them with concerns related to their business and auto dealership. The success of an auto dealership may depend, at least in part, on understanding the legal basics of running an auto dealership and how the legal process can help with any challenges that may pop up.
Issues that may come up related to motor vehicle franchising and running an auto dealership can be complex at times but legal resources can help guide auto dealers through their concerns. Concerns that auto dealers may have can relate to the relationship between the auto manufacturer and the dealer; terminating a franchise agreement by demonstrating good cause to do so; or local and state licensing and regulation requirements that must be met.
Another important issue that may arise for an auto dealership or franchisee is a franchise transfer. Auto manufacturers may make the transfer of an auto dealership challenging by adding conditions to the transfer that the auto dealer or franchisee should understand how to address and what their rights are during the process. Understanding how to approach and franchisee transfer can help the franchisee or auto dealer negotiate a deal that is beneficial to them and their interests. Selling an auto dealership can also require skilled negotiation and knowledge of sale and purchase agreements and how to structure the deal and review financing agreements.
To protect their interests, it is helpful for auto dealers to be familiar with the legal protections that are available to them whether they are dealing with a franchise contract issue or selling their dealership. Trained guidance can also be beneficial for helping them achieve as successful an outcome as possible for their dealership whatever their legal concern may be.