The bill amends the Franchise Termination Act to enhance protections for dealers and clarify the process for terminating franchises. Key changes include the requirement for suppliers to provide at least 180 days' written notice of termination, stating the reasons for termination and allowing dealers 60 days to cure any deficiencies. The bill introduces a new definition of "good cause" for termination, outlining specific circumstances under which a supplier may terminate a franchise. Additionally, it mandates that suppliers must approve or deny requests for the sale or transfer of a dealer's business within 60 days, with deemed approval if no response is given.

Furthermore, the bill establishes that any provisions in a franchise that attempt to waive the protections of the Franchise Termination Act or impose attorney fees on dealers are void. It allows dealers to pursue both contract remedies and state law remedies without forfeiting other legal rights. If a supplier violates the Act, dealers can seek damages, including lost profits and attorney fees, and may also obtain injunctive relief against unlawful terminations. The provisions apply to all existing franchises without expiration dates and to those entered into or renewed after the bill's effective date.

Statutes affected:
introduced version: 57-23-1, 57-23-2