Florida automobile dealers must frequently deal with recalls of cars in order to repair or replace defective parts. There are many state and federal laws and regulations at work in these recalls, but they all relate to the legal theory of product liability.
There's a difference between healthy business competition and illegal competition. When a business goes too far and illegally interferes with a competitor's business, it can find itself the defendant in a lawsuit alleging tortious interference.
In the personal computer market, it has long been a source of dispute that certain computer makers discourage consumers from using replacement parts made by other manufacturers. Instead, these companies want consumers to buy only their name-brand parts.
The auto dealership business can be tough in Florida. Overhead costs are high, profit margins can be slim, and there is a heavy burden of regulatory compliance issues. One area where auto dealers can run into trouble is with advertising.
The automobile dealership business is going through some tough times. According to some analysts, it may be going through the toughest period since the Great Recession more than 10 years ago.
Although opening a franchise business in Florida can be a lucrative and exciting investment, it can also be a difficult undertaking if the business owner is not aware of the control they may need to give up concerning the details of their franchise relationship. A franchise, regardless of its industry, may be set up in such a way that every business under the franchise looks the same, operates the same, and pays the same costs to the franchisor. It is important to understand some of the ways that franchisors may structure the operation of franchises, but our readers are reminded that different franchise relationships may vary.
Like other contracts, automobile dealer franchise agreements are based on the foundational principles of contracts law. An offer is made, an acceptance is garnered and, in exchange, some consideration passes between the hands of the transacting parties. However, when it comes to franchising, additional terms about business operations and other pertinent matters may also be included therein.
Independent businesses exist all throughout Florida. These entities are unique and are generally stand-alone businesses that are run by individuals, partners, or groups. The owners may have multiple locations for their businesses, but as long as they own each individual business, their entities will not be considered franchises. That is because franchises have a very different business structure.
The relationship between a franchisor and franchisee is governed by an agreement between the parties. When Florida automobile dealers wish to open their own franchise, they may work with auto makers or other entities to set the parameters for what they may do and how they may sell vehicles under the franchisor's name. When disputes arise between the parties, the information contained in their agreement may be controlling.
Opening an automobile franchise is a major financial investment. It can tax the resources of the franchisee and may push them to their limits in order to achieve their goals of having their own automobile dealership. In Florida, individuals work hard to meet the stringent requirements of opening dealerships and abiding by the terms of their franchise agreements. Past posts on this blog have detailed these and other requirements that dealerships must meet in order to operate in the state.