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<law><site_title>Virginia Decoded</site_title><site_url>https://vacode.org</site_url><law_id>81977</law_id><section_number>46.2-1566</section_number><catch_line>Filing of franchises</catch_line><edition url="https://vacode.org/2025/" slug="2025" current="TRUE" last_updated="">2025</edition><referred_to_by><reference>46.2-1500</reference><reference>46.2-1503.4</reference><reference>46.2-1504</reference><reference>46.2-1569</reference><reference>46.2-1573.1</reference></referred_to_by><structure><unit label="title" level="1" order_by="1" identifier="46.2">Motor Vehicles</unit><unit label="subtitle" level="2" order_by="1" identifier="IV">Dealers and Driver Training Schools</unit><unit label="chapter" level="3" order_by="1" identifier="15">Motor Vehicle Dealers</unit><unit label="article" level="4" order_by="1" identifier="7">Franchises</unit></structure><text>
						<section id="A"><p><span class="prefix-number">A.</span> It shall be the responsibility of each motor vehicle <span class="dictionary">manufacturer</span>, <span class="dictionary">factory branch</span>, distributor, <span class="dictionary">distributor branch</span>, or subsidiary thereof to file with the <span class="dictionary">Commissioner</span> by certified mail a true copy of each <span class="dictionary">new</span>, amended, modified, or different form or <span class="dictionary">addendum</span> offered to more than one dealer which affects the rights, responsibilities, or obligations of the parties of a <span class="dictionary">franchise</span> or sales, service, or sales and service agreement to be offered to a <span class="dictionary">motor vehicle dealer</span> or prospective <span class="dictionary">motor vehicle dealer</span> in the Commonwealth no later than 60 days prior to the date the <span class="dictionary">franchise</span> or sales agreement is offered. In no event shall a <span class="dictionary">new</span>, amended, modified, or different form of <span class="dictionary">franchise</span> or sales, service, or sales and service agreement be offered a <span class="dictionary">motor vehicle dealer</span> in the Commonwealth until the form has been determined by the <span class="dictionary">Commissioner</span> as not containing terms inconsistent with the provisions of this chapter. At the time a filing is made with the <span class="dictionary">Commissioner</span> pursuant to this section, the <span class="dictionary">manufacturer</span>, <span class="dictionary">factory branch</span>, distributor, <span class="dictionary">distributor branch</span>, or subsidiary shall also give written notice together with a copy of the papers so filed to the affected dealer or <span class="dictionary">dealers</span>. <a id="paragraph-293755" class="section-permalink" href="https://vacode.org/46.2-1566/#A"><i class="fa fa-link"/></a></p></section>
						<section id="B"><p><span class="prefix-number">B.</span> The <span class="dictionary">Department</span> shall inform the <span class="dictionary">manufacturer</span>, <span class="dictionary">factory branch</span>, distributor, <span class="dictionary">distributor branch</span>, or subsidiary and the dealer or <span class="dictionary">dealers</span> or other parties named in the agreement of a preliminary recommendation as to the consistency of the agreement with the provisions of this chapter. If any of the parties involved have comments on the preliminary recommendation, they must be submitted to the <span class="dictionary">Commissioner</span> within 30 days of receiving the preliminary recommendation. The <span class="dictionary">Commissioner</span> shall render his decision within 15 days of receiving comments from the parties involved. If the <span class="dictionary">Commissioner</span> does not receive comments within the 30-day time period, he shall make the final determination as to the consistency of the agreement with the provisions of this chapter. <a id="paragraph-293756" class="section-permalink" href="https://vacode.org/46.2-1566/#B"><i class="fa fa-link"/></a></p></section>
						<section id="C"><p><span class="prefix-number">C.</span> Any form or <span class="dictionary">addendum</span> that is not filed as required by this section may not be the basis for (i) any reduction in compensation due to a dealer from the franchisor, (ii) any franchisor demand or requirement by which a dealer must abide, or (iii) any <span class="dictionary">penalty</span> or detriment a franchisor imposes or attempts to impose on a <span class="dictionary">motor vehicle dealer</span>. This section shall not apply to any dealer program or dealer incentive that is not inconsistent with any form or <span class="dictionary">addendum</span> already on file by the <span class="dictionary">manufacturer</span> with the state or that expires within 12 months of its start date, or the continuation, renewal, or modification of any dealer program or dealer incentive that was in place as of July 1, 2015. This section shall not apply to any consumer program or consumer incentive, including discount pricing programs. <a id="paragraph-293757" class="section-permalink" href="https://vacode.org/46.2-1566/#C"><i class="fa fa-link"/></a></p></section></text><history>1988, c. 865, &#xA7; 46.1-550.5:24; 1989, c. 727; 1994, c. 537; 1995, cc. 767, 816; 2015, c. 236.</history><metadata></metadata></law>
