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2025 Utah Code
Title 13 - Commerce and Trade
Chapter 35 - Powersport Vehicle Franchise Act
Part 3 - Restrictions on Termination, Relocation, and Establishment of Franchises
Section 304 - Hearing regarding termination, relocation, or establishment of franchises.
Universal Citation:
UT Code § 13-35-304 (2025)
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13-35-304. Hearing regarding termination, relocation, or establishment of franchises.
Amended by Chapter 268, 2005 General Session
- (1)
- (a) Within 10 days of receiving an application from a franchisee under Subsection 13-35-301(3) challenging its franchisor's right to terminate or not continue a franchise, or an application under Subsection 13-35-302(1) challenging the establishment or relocation of a franchise, the executive director shall:
- (i) enter an order designating the time and place for the hearing; and
- (ii) send a copy of the order by certified or registered mail, with return receipt requested, or by any form of reliable delivery through which receipt is verifiable to:
- (A) the applicant;
- (B) the franchisor; and
- (C) if the application involves the establishment of a new franchise or the relocation of an existing dealership, to all franchisees in the relevant market area engaged in the business of offering to sell or lease the same line-make.
- (b) A copy of an order mailed under Subsection (1)(a) shall be addressed to the franchisee at the place where the franchisee's business is conducted.
- (a) Within 10 days of receiving an application from a franchisee under Subsection 13-35-301(3) challenging its franchisor's right to terminate or not continue a franchise, or an application under Subsection 13-35-302(1) challenging the establishment or relocation of a franchise, the executive director shall:
- (2) Any person who can establish an interest in the application may intervene as a party to the hearing, whether or not that person receives notice.
- (3) Any person may appear and testify on the question of the public interest in the termination or noncontinuation of a franchise or in the establishment of an additional franchise.
- (4)
- (a)
- (i) Any hearing ordered under Subsection (1) shall be conducted no later than 120 days after the application for hearing is filed.
- (ii) A final decision on the challenge shall be made by the executive director no later than 30 days after the hearing.
- (b) Failure to comply with the time requirements of Subsection (4)(a) is considered a determination that the franchisor acted with good cause or, in the case of a protest of a proposed establishment or relocation of a dealer, that good cause exists for permitting the proposed additional or relocated new motor vehicle dealer, unless:
- (i) the delay is caused by acts of the franchisor or the additional or relocating franchisee; or
- (ii) the delay is waived by the parties.
- (a)
- (5) The franchisor has the burden of proof to establish that under this chapter it should be granted permission to:
- (a) terminate or not continue the franchise;
- (b) enter into a franchise agreement establishing an additional franchise; or
- (c) relocate the dealership of an existing franchisee.
Amended by Chapter 268, 2005 General Session
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