If you wish to open a new auto dealership, you will need to give written notice of your intent. This notice allows other dealerships in the area to have the right to protest your business coming to the area.
According to the Department of Highway Safety and Motor Vehicles, the right to protest is the right of an existing dealership selling the same line or make of vehicles that you intend to sell to protest you moving into the area.
How it works
You do not actually give your notice of intent to move into a specific area or territory to the other dealerships. You will submit the notice to the Department of Highway Safety and Motor Vehicles.
In your notice, you will provide information about yourself, such as your name and address, and your intentions, including where and when you plan to open the dealership. You also have to do the research to find and name competing dealerships in the county.
The Department will then publish a notice in the Florida Administrative Register that will let the other dealers know about your intended dealership. The other dealers may then object to your business.
The reason for it
The reason why the law allows the right to protest is to protect the integrity of the market and to keep it competitive. If there are too many dealers selling the exact same makes and models of vehicles in one area, it dilutes the market. It will end up damaging your business and the business of the other dealerships. Eventually, you all may have to close your doors due to the lack of sales. The right to protest simply makes it so that everyone has a fair chance at business success.