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check franchise laws
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Posted by curt (more from curt) on Tue, 9 Apr 2002 23:26:53 Share Post by Email
In Reply to: thinking about opening up a saab dealer..., jimbobjoe, Tue, 9 Apr 2002 21:06:59
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used to do some auto dealer franchise law stuff. check your state's code. there is also a federal code on auto dealers. yes, a federal law. in general, both fed and state actually operate to protect a franchisee from its mfr. some states do little (ny) and some states do more (nj). the laws are generally within the state's franchise laws (which apply to mcd's, 7-11's, etc.) and are a subset. generally, the laws prevent mfr's from owning dealerships, from imposing too stringent requirements, from dealing unfairly, from locating dealers too closely, etc. the laws you're interested in would be the location/proximity laws and related. that's the easy part, the particular franchise agreement is the bear. standards on capital, presence, commitment, location, building, etc. a word of caution is that if your name ain't gm or ford, don't expect to win in fed court at all and unlikely in state court. ask me how I know (gm's plan 2000, the mercedes truck sub franchise, etc.)

get a real lawyer who specializes in this stuff (yes, they do have this sub, sub specialty) and in leases, contracts, corp formation, etc.

i'd be very surprised if you could do this from scratch, but good luck.

curt


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