The bill amends the Franchise Termination Act in New Mexico by updating definitions and establishing new requirements for the termination of franchise agreements. Key definitions are clarified, including the terms "dealer," "franchise," and "good cause," with new language added to specify the types of equipment involved and the conditions under which a franchise may be terminated. Notably, the bill mandates that a dealer must provide at least thirty days' written notice before terminating a franchise, and suppliers are prohibited from terminating a franchise without demonstrating "good cause." The bill also introduces a requirement for suppliers to provide a minimum of one hundred eighty days' notice for termination, detailing the reasons for such actions and allowing dealers a chance to rectify any deficiencies.

Additionally, the bill includes provisions that protect dealers from waiving their rights under the Franchise Termination Act and prohibits any franchise agreement from imposing attorney fees on dealers. It allows dealers to pursue both contract remedies and state law remedies, ensuring they have multiple avenues for recourse. If a supplier violates the Act, dealers can seek damages, including lost profits and legal costs. The provisions apply to all existing franchise agreements without expiration and to new or renewed agreements after the bill's effective date.

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