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 transfer of the business, during which time termination attempts by the supplier are delayed.

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 dates and to any franchises entered into or renewed after the bill's effective date.

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