Sometimes, a car manufacturer may open another dealership in your area. If you feel that this dealership will affect your ability to be successful, you have the right to protest the new business. There are several elements that you need to pay attention to if you want to file a successful claim.
According to the Florida Legislature, the Florida Administrative Register has to publish a notice concerning proposed dealerships. This notice explains what kind of dealership someone wants to open. You should also receive a copy of this notice through the mail. This allows you to know immediately when a manufacturer intends to open a new dealership. You may have to provide evidence that a new dealership will negatively affect your own business. One of the factors that officials consider is the population of your area.
The Florida Legislature has specific guidelines for dealerships located in areas with a population of fewer than 300,000 people. The proposed dealership may be within 20 miles of your location. In this situation, you may show that one-quarter of your customers lived within 20 miles of the potential dealership. This demonstrates that you do regular business in those areas and that a new dealership would take some of your customers.
If your local population is larger than 300,000, you have to follow similar guidelines. In this situation, a potential dealership may be within 12.5 miles of your business. Again, you have to demonstrate that one-quarter of your sales came from people within those 12.5 miles. You can use your sales records from one of the past three years before you received notice of the new dealership.
If the Department of Motor Vehicles decides not to provide a permit for a new dealership, this decision is usually in place for one year. After this period, the DMV may reevaluate the situation.