Our association’s advocacy leads to comprehensive reforms, modernizing franchise law and reinforcing fairness for dealers across the state. For dealers across North Carolina, running a franchise can feel like navigating a constantly shifting landscape. From ownership transitions to warranty obligations, inventory management and over-the-air vehicle subscriptions, the challenges are real and sometimes costly. Recognizing these pressures, NCADA took the lead in drafting legislation to modernize franchise protections and ensure dealers can operate on a level playing field. The resulting law, passed last year, addresses nearly every aspect of the dealer-manufacturer relationship. It strengthens succession planning, clarifies ownership transfers, modernizes warranty reimbursement, protects against inventory risk and ensures fair compensation in a growing digital marketplace. Behind the legislation were months of NCADA-led advocacy, collaboration with manufacturers and careful work with lawmakers to produce reforms that address real-world dealer needs. A central focus of the bill is fairness in ownership transitions. Applications for dealership transfers, sales, management changes or successor appointments must now be evaluated solely by their merits. Manufacturers may no longer consider whether another manufacturer previously denied an applicant, nor may they penalize applicants or their affiliates who have exercised their legal rights through civil or administrative actions. These safeguards protect dealers and successors from bias tied to unrelated past events and create a predictable framework for succession planning. In addition, if a manufacturer unreasonably denies a transfer and that denial is later overturned by a court or administrative agency, the manufacturer must reimburse both the dealer and the applicant for attorneys’ fees, discouraging arbitrary denials. The legislation also ensures that dealers are not unfairly held to performance benchmarks when they lack the necessary tools to succeed. Manufacturers cannot terminate, cancel or refuse to renew a franchise for failing to meet sales or service standards unless they have provided a sufficient number and appropriate mix of vehicles to allow substantial progress. This shared responsibility reinforces fairness and protects dealers from penalties caused by inventory shortages or misaligned product allocation. NCADA Strengthens Dealer Protections with New Franchise Legislation 8
RkJQdWJsaXNoZXIy MTg3NDExNQ==