(b) A reinstated franchisee has a private right of action for actual damages and reasonable
attorney fees against a new franchisor if:
(i) the new franchisor:
(A) establishes a new franchisee of the same line-make as a line-make of the reinstated
franchisee within the relevant market area of the reinstated franchisee; or
(B) adds a line-make to another franchisor's existing franchisee within the relevant
market area of the reinstated franchisee that is the same line-make as a line-make
of the reinstated franchisee; and
(ii) the franchisor's action under Subsection (2)(b)(i) causes a substantial diminution
in value of the reinstated franchisee's reinstated franchise.
(c) A new franchisor may not be held liable under Subsection (2)(b) based on a franchisee's
purchase of another existing franchise, both of which are within the relevant market
area of a reinstated franchisee, for the purpose of combining the purchased franchise
with the franchise of the purchasing franchisee.
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 or via Westlaw before relying on it for your legal needs.
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