One should also consider the hoops through which a dealer must jump to salvage his business, continue supporting his family and what resources he can bring to bear. The proposal is unfair. It burdens the dealer when the dealer should not be burdened. The termination of a dealer for any reason must be based solely on good cause. Motives are immaterial.
Good cause is well defined and is deeply imbedded in the franchise laws throughout the country.
It is a standard that is well understood. The manufacturer and distributor should be required to come forward and justify the decision under a single, well-accepted standard, good cause . The next article in this series deals with dealer appointments and relocations. Many of the issues discussed in this article are equally applicable in the context of dealer appointments and relocations. All rights reserved.