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Utah Code Title 13. Commerce and Trade § 13-14-308. Private right of action

Current as of May 05, 2022 | Updated by FindLaw Staff

(1) A franchisee has a private right of action for actual damages and reasonable attorney fees against a franchisor for a violation of this chapter that results in damage to the franchisee.

(2)(a) As used in this Subsection (2):

(i) “New franchisor” has the same meaning as defined in Section 13-14-302.5.

(ii) “Reinstated franchise” has the same meaning as defined in Section 13-14-302.5.

(iii) “Reinstated franchisee” has the same meaning as defined in Section 13-14-302.5.

(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.

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Cite this article: FindLaw.com - Utah Code Title 13. Commerce and Trade § 13-14-308. Private right of action - last updated May 05, 2022 | https://codes.findlaw.com/ut/title-13-commerce-and-trade/ut-code-sect-13-14-308/

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