2014 Indiana Code TITLE 9. MOTOR VEHICLES ARTICLE 32. DEALER SERVICES CHAPTER 15. SUCCESSION TO FRANCHISE BY DESIGNATED FAMILY MEMBERS
Download as PDF
IC 9-32-15
Chapter 15. Succession to Franchise by Designated Family
Members
IC 9-32-15-1
Application
Sec. 1. This chapter does not apply to a franchise if:
(1) the franchise is granted to a dealer other than a new motor
vehicle dealer; and
(2) the franchise or other written document filed with the
franchisor includes the franchisee's designation of a successor
to the franchise who is not the:
(A) spouse of the franchisee;
(B) child of the franchisee;
(C) grandchild of the franchisee;
(D) spouse of a:
(i) child; or
(ii) grandchild;
of the franchisee;
(E) parent of the franchisee; or
(F) sibling of the franchisee.
As added by P.L.92-2013, SEC.78.
IC 9-32-15-2
Succession to franchise
Sec. 2. A designated family member of a deceased or incapacitated
franchisee may succeed the franchisee under the existing franchise if:
(1) the manufacturer or distributor determines, subject to section
3 of this chapter, that the existing franchise should be honored;
and
(2) the designated family member complies with section 4 of
this chapter.
As added by P.L.92-2013, SEC.78.
IC 9-32-15-3
Good cause to refuse to honor franchise
Sec. 3. A manufacturer or distributor may refuse to honor the
succession of an existing franchise under section 2 of this chapter
only for good cause.
As added by P.L.92-2013, SEC.78.
IC 9-32-15-4
Qualification of designated family member to succeed to the
franchise
Sec. 4. To qualify under section 2 of this chapter to succeed a
franchisee under the existing franchise, a designated family member
must do all the following:
(1) Not later than one hundred twenty (120) days after the
franchisee's death or disability, give the manufacturer or
distributor written notice of the designated family member's
intention to succeed to the franchise.
(2) Agree to be bound by all terms and conditions of the existing
franchise.
(3) Meet the criteria generally applied at the time of the death or
incapacity of the franchisee by the manufacturer or distributor
in qualifying new motor vehicle dealers as franchisees.
(4) If requested by the manufacturer or distributor, promptly
supply personal and financial data that is reasonably necessary
for the manufacturer or distributor to determine if the existing
franchise should be honored.
As added by P.L.92-2013, SEC.78.
IC 9-32-15-5
Notice of refusal to honor franchise
Sec. 5. (a) Not later than sixty (60) days after receipt of:
(1) notice from a designated family member under section 4(1)
of this chapter; or
(2) requested personal or financial data under section 4(4) of
this chapter;
a manufacturer or distributor that determines that good cause exists
for refusing to honor an existing franchise shall serve notice of the
determination on the designated family member.
(b) The notice required under subsection (a) must state the
following:
(1) The specific grounds for the manufacturer's or distributor's
determination.
(2) The date on which the existing franchise will be
discontinued, which must be at least ninety (90) days after the
date the notice is served.
(c) If notice of the manufacturer's determination is not served
within the time specified in subsection (a) and does not comply with
subsection (b), the franchise must be honored and is not subject to
discontinuance under this chapter.
As added by P.L.92-2013, SEC.78.
Disclaimer: These codes may not be the most recent version. Indiana may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.
