The bill amends the Franchise Termination Act to enhance protections for dealers and clarify the process for terminating franchises. It introduces new definitions, including "good cause," which outlines specific conditions under which a supplier can terminate a franchise. The bill mandates that suppliers provide at least 180 days' written notice of termination, stating the reasons for termination and allowing dealers 60 days to rectify any deficiencies. Additionally, it establishes that if a dealer dies, their estate has 180 days to request a sale or transfer of the business, delaying any termination attempts by the supplier during this period.

Furthermore, the bill includes provisions that render any attempts to waive the Franchise Termination Act or apply laws from other states void. It allows dealers to pursue both contract remedies and state law remedies, ensuring they are not limited in their options. 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 and to any new or renewed franchises after the bill's effective date.

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