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Current as of January 01, 2024 | Updated by Findlaw Staff
1. Unless otherwise provided in subsection 2, notwithstanding the terms, provisions, or conditions of any agreement or franchise, a franchiser shall not terminate or refuse to continue any franchise unless the franchiser has first established, in a hearing held under the provisions of this chapter, that both of the following apply:
a. The franchiser has good cause for termination or noncontinuance.
b. Upon termination or noncontinuance, another franchise in the same line-make will become effective in the same community, without diminution of the motor vehicle service formerly provided, or that the community cannot be reasonably expected to support such a dealership.
2. A franchiser may terminate a franchise for a particular line-make if the franchiser discontinues that line-make and a franchiser may terminate a franchise if the franchisee's license as a motor vehicle dealer is revoked pursuant to the provisions of chapter 322.
Cite this article: FindLaw.com - Iowa Code Title VIII. Transportation [Chs. 306-330B] § 322A.2. Discontinuing franchise - last updated January 01, 2024 | https://codes.findlaw.com/ia/title-viii-transportation-chs-306-330b/ia-code-sect-322a-2/
FindLaw Codes may not reflect the most recent version of the law in your jurisdiction. Please verify the status of the code you are researching with the state legislature before relying on it for your legal needs.
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