2006 Utah Code - 13-35-307 — Franchisor\'s repurchase obligations upon termination or noncontinuation of franchise.

     13-35-307.   Franchisor's repurchase obligations upon termination or noncontinuation of franchise.
     (1) Upon the termination or noncontinuation of a franchise by the franchisor, the franchisor shall pay the franchisee:
     (a) the franchisee's cost of new, undamaged, and unsold powersport vehicles in the franchisee's inventory acquired from the franchisor or another franchisee of the same line-make representing both the current model year at the time of termination or noncontinuation and the immediately prior model year vehicles:
     (i) plus any charges made by the franchisor, for distribution, delivery, or taxes;
     (ii) plus the franchisee's cost of any accessories added on the vehicle shall be repurchased; and
     (iii) less all allowances paid or credited to the franchisee by the franchisor;
     (b) the cost of all new, undamaged, and unsold supplies, parts, and accessories as set forth in the franchisor's catalog at the time of termination or noncontinuation for the supplies, parts, and accessories, less all allowances paid or credited to the franchisee by the franchisor;
     (c) the fair market value, but not less than the franchisee's depreciated acquisition cost of each undamaged sign owned by the franchisee that bears a common name, trade name, or trademark of the franchisor if acquisition of the sign was recommended or required by the franchisor. If a franchisee has a sign with multiple manufacturers listed, the franchisor is only responsible for its pro rata portion of the sign;
     (d) the fair market value, but not less than the franchisee's depreciated acquisition cost of all special tools, equipment, and furnishings acquired from the franchisor or sources approved by the franchisor that were recommended or required by the franchisor and are in good and usable condition; and
     (e) the cost of transporting, handling, packing, and loading powersport vehicles, supplies, parts, accessories, signs, special tools, equipment, and furnishings.
     (2) The franchisor shall pay the franchisee the amounts specified in Subsection (1) within 90 days after the tender of the property to the franchisor if the franchisee:
     (a) has clear title to the property; and
     (b) is in a position to convey title to the franchisor.
     (3) If repurchased inventory and equipment are subject to a security interest, the franchisor may make payment jointly to the franchisee and to the holder of the security interest.

Enacted by Chapter 234, 2002 General Session