HEADLIGHTS ON THE LAW BEN JORDAN GADA GENERAL COUNSEL & DIRECTOR OF GOVERNMENTAL RELATIONS Once again, your voice at the Georgia Capitol was heard, and this legislative victory is the result. Senate Bill 81: A Win for Georgia’s Franchise Dealers The 2025 legislative session came to an end late on the evening of Friday, April 4. This year’s session was notable for the passage of comprehensive tort reform, the first comprehensive reform in 20 years. This session was also notable for Georgia’s franchise dealers because of the passage of Senate Bill 81, which updates Georgia’s Franchise Practice Act, the law that regulates the relationship between a local franchise dealer and motor vehicle manufacturer. This is the first update to Georgia’s franchise law since 2019, and it contains several provisions beneficial to GADA members and to the dealer franchise system in Georgia. I. LEGISLATIVE FINDINGS The Legislative Findings portion of a statute states the reasons why the General Assembly enacts a piece of legislation. Sente Bill 81 amends current law by: • Adding “recall service” to the list of services of substantial concern to the public that franchise dealers perform for consumers. • Emphasizing the benefits of competition within the franchise system for consumers, including competitive pricing, service and convenient repair facilities. • Highlighting additional benefits of local dealerships, such as introducing new automotive technology, supporting and maintaining vehicles after sale, protecting against monopolies and providing stable employment. When the constitutionality of laws is challenged in court, judges often look to the legislative findings portion of statutes to help decide whether a statute is valid. It is hopeful these changes will help fortify Georgia’s franchise law. THE GENERATOR 6
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