This bill amends Florida Statutes sections 320.64 and 320.641, focusing on the relationship between motor vehicle manufacturers and their franchised dealers. It prohibits applicants or licensees, as well as any common entities, from establishing or enforcing sales or service performance criteria that adversely affect dealers unless specific conditions are met. Additionally, it forbids retaliatory actions against dealers who assert their rights or participate in investigations related to the manufacturers' practices. The bill also revises the criteria under which the discontinuation, cancellation, nonrenewal, modification, or replacement of franchise agreements is deemed unfair, emphasizing the need for good faith and substantial justification for such actions.
Key changes include the insertion of language that clarifies the conditions under which performance criteria can be enforced and the circumstances that constitute unfair treatment of dealers. The bill mandates that any performance measurement criteria must be based on valid data and that dealers must be given a chance to correct alleged performance failures before any adverse actions are taken. Furthermore, it establishes that the burden of proof lies with the applicant or licensee to demonstrate that any discontinuation or modification of agreements is fair. The act is set to take effect on July 1, 2025.
Statutes affected: S 1820 Filed: 320.67
S 1820 c1: 320.64, 320.641