Modification of Franchise This protest allows dealers to halt and challenge a proposed modification or replacement of a franchise agreement if it would substantially affect the franchisee’s sales, service obligations, or investment. This protest must be filed within 30 days from the dealer’s receipt of notice, or 30 days after the end of any appeal procedure provided by the franchisor. The dealer has the burden of proving a modification to the franchise agreement. Once it does, the burden shifts to the franchisor to show good cause for the proposed change. The franchisor cannot enact the change unless and until the protest is resolved in its favor. Additional or Relocated Franchise Within a 10-Mile Radius Dealers can challenge the establishment of a new dealership or the relocation of an existing dealership of the same line-make within a 10-mile radius. The manufacturer or distributor must first give written notice to the Board and to dealerships of the same line-make within the relevant marketing area of the proposed new or relocating dealership. This protest must be filed within 20 days of the dealer’s receipt of notice, or 20 days after the end of any appeal procedure provided by the franchisor. The protesting dealer has the burden of proving that there is reasonable cause to prevent the establishment of the additional dealer or relocation. Additional or Relocated Satellite Warranty Facility Within a Two-Mile Radius Dealers can challenge the establishment of an additional satellite warranty facility or the relocation of an existing satellite warranty facility within two miles of any dealership of the same line-make. The manufacturer or distributor must first give written notice to the Board and to dealerships of the same line-make within two miles of the proposed location. This also must be filed within 20 days from the dealer’s receipt of notice or after the end of any appeal procedure with the franchisor. The protesting dealer has the burden of proving that there is reasonable cause to prevent the establishment of the additional or relocated satellite warranty facility. Retail Warranty Compensation Law Compliance This protest allows a dealer to establish or modify their retail labor rate and/or retail parts rate by Board declaration if the franchisor fails to comply with the statutory methodology or if the dealer disputes the manufacturer’s proposed adjusted RSVP Today at cncda.org/events! 15 California New Car Dealer Quarterly
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