Dealership: means a site or location in this state:
(a)
at which a franchisee conducts the business of a new powersport vehicle dealer; and
(b)
that is identified as a new powersport vehicle dealer's principal place of business for registration purposes under Section 13-35-105. See Utah Code 13-35-102
Executive director: means the executive director of the Department of Commerce. See Utah Code 13-35-102
franchise agreement: means a written agreement, for a definite or indefinite period, in which:
(a)
a person grants to another person a license to use a trade name, trademark, service mark, or related characteristic; and
(b)
a community of interest exists in the marketing of new powersport vehicles, new powersport vehicle parts, and services related to the sale or lease of new powersport vehicles at wholesale or retail. See Utah Code 13-35-102
Franchisee: means a person with whom a franchisor has agreed or permitted, in writing or in practice, to purchase, sell, or offer for sale new powersport vehicles manufactured, produced, represented, or distributed by the franchisor. See Utah Code 13-35-102
Franchisor: means a person who has, in writing or in practice, agreed with or permits a franchisee to purchase, sell, or offer for sale new powersport vehicles manufactured, produced, represented, or distributed by the franchisor, and includes:
(i)
the manufacturer or distributor of the new powersport vehicles;
(ii)
an intermediate distributor;
(iii)
an agent, officer, or field or area representative of the franchisor; and
(iv)
a person who is affiliated with a manufacturer or a representative or who directly or indirectly through an intermediary is controlled by, or is under common control with the manufacturer. See Utah Code 13-35-102
Lease: A contract transferring the use of property or occupancy of land, space, structures, or equipment in consideration of a payment (e.g., rent). Source: OCC
Line-make: means the powersport vehicles that are offered for sale, lease, or distribution under a common name, trademark, service mark, or brand name of the franchisor, or manufacturer of the powersport vehicle. See Utah Code 13-35-102
for a powersport dealership in a county that has a population of less than 225,000:
(i)
the county in which the powersport dealership exists or is to be established or relocated; and
(ii)
in addition to the county described in Subsection (13)(a)(i), the area within a 15-mile radius from the site of the existing, new, or relocated dealership; or
(b)
for a powersport dealership in a county that has a population of 225,000 or more, the area within a 10-mile radius from the site of the existing, new, or relocated dealership. See Utah Code 13-35-102
(a)
Within 10 days of receiving an application from a franchisee under Subsection 13-35-301(3) challenging its franchisor‘s right to terminate or not continue a franchise, or an application under Subsection 13-35-302(1) challenging the establishment or relocation of a franchise, the executive director shall:
(i)
enter an order designating the time and place for the hearing; and
(ii)
send a copy of the order by certified or registered mail, with return receipt requested, or by any form of reliable delivery through which receipt is verifiable to:
(A)
the applicant;
(B)
the franchisor; and
(C)
if the application involves the establishment of a new franchise or the relocation of an existing dealership, to all franchisees in the relevant market area engaged in the business of offering to sell or lease the same line-make.
(b)
A copy of an order mailed under Subsection (1)(a) shall be addressed to the franchisee at the place where the franchisee’s business is conducted.
(2)
Any person who can establish an interest in the application may intervene as a party to the hearing, whether or not that person receives notice.
(3)
Any person may appear and testify on the question of the public interest in the termination or noncontinuation of a franchise or in the establishment of an additional franchise.
(4)
(a)
(i)
Any hearing ordered under Subsection (1) shall be conducted no later than 120 days after the application for hearing is filed.
(ii)
A final decision on the challenge shall be made by the executive director no later than 30 days after the hearing.
(b)
Failure to comply with the time requirements of Subsection (4)(a) is considered a determination that the franchisor acted with good cause or, in the case of a protest of a proposed establishment or relocation of a dealer, that good cause exists for permitting the proposed additional or relocated new motor vehicle dealer, unless:
(i)
the delay is caused by acts of the franchisor or the additional or relocating franchisee; or
(ii)
the delay is waived by the parties.
(5)
The franchisor has the burden of proof to establish that under this chapter it should be granted permission to:
(a)
terminate or not continue the franchise;
(b)
enter into a franchise agreement establishing an additional franchise; or
(c)
relocate the dealership of an existing franchisee.
