Texas Occupations Code 2301.462 – Succession Following Death of Franchised Dealer
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(a) Notwithstanding the terms of any franchise, except as provided by Subsection (b), a manufacturer, distributor, or representative shall honor the succession to a dealership by a legal heir or devisee under:
(1) the will of a franchised dealer; or
(2) the laws of descent and distribution of this state.
(b) Notwithstanding the terms of any franchise, a manufacturer, distributor, or representative may refuse to honor a succession if, after notice and hearing, it is shown to the board that the result of the succession will be detrimental to the public interest and to the representation of the manufacturer or distributor.
Terms Used In Texas Occupations Code 2301.462
- Person: includes corporation, organization, government or governmental subdivision or agency, business trust, estate, trust, partnership, association, and any other legal entity. See Texas Government Code 311.005
- Written: includes any representation of words, letters, symbols, or figures. See Texas Government Code 311.005
(c) This section does not prevent a franchised dealer, during the dealer’s lifetime, from designating any person as a successor dealer by a written instrument filed with the manufacturer or distributor.