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<law><site_title>Virginia Decoded</site_title><site_url>https://vacode.org</site_url><law_id>87095</law_id><section_number>46.2-1573.5</section_number><catch_line>Other coercion of dealers; transfer, grant, succession to and cancellation of dealer franchises; delivery of recreational vehicles, parts, and accessories</catch_line><edition url="https://vacode.org/2025/" slug="2025" current="TRUE" last_updated="">2025</edition><referred_to_by><reference>46.2-1573.11</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="7.2">Recreational Vehicle Franchises</unit></structure><text>
						<section><p>It shall be unlawful for any <span class="dictionary">manufacturer</span>, <span class="dictionary">factory branch</span>, distributor, or <span class="dictionary">distributor branch</span>, or any field representative, officer, <span class="dictionary">agent</span>, or their representatives:</p></section>
						<section id="1"><p><span class="prefix-number">1.</span> To coerce or attempt to coerce any <span class="dictionary">dealer</span> to accept delivery of any <span class="dictionary">recreational vehicle</span> or <span class="dictionary">recreational vehicles</span>, parts or accessories therefor, or any other commodities that have not been ordered by the <span class="dictionary">dealer</span>. <a id="paragraph-311852" class="section-permalink" href="https://vacode.org/46.2-1573.5/#1"><i class="fa fa-link"/></a></p></section>
						<section id="2"><p><span class="prefix-number">2.</span> To coerce or attempt to coerce any <span class="dictionary">dealer</span> to enter into an agreement with the <span class="dictionary">manufacturer</span>, <span class="dictionary">factory branch</span>, distributor, or <span class="dictionary">distributor branch</span>, or representative thereof, or do any other act unfair to the <span class="dictionary">dealer</span>, by threatening to <span class="dictionary">cancel</span> any <span class="dictionary">franchise</span> existing between the <span class="dictionary">manufacturer</span>, <span class="dictionary">factory branch</span>, distributor, <span class="dictionary">distributor branch</span>, or representative thereof and the <span class="dictionary">dealer</span>. <a id="paragraph-311853" class="section-permalink" href="https://vacode.org/46.2-1573.5/#2"><i class="fa fa-link"/></a></p></section>
						<section id="3"><p><span class="prefix-number">3.</span> To coerce or attempt to coerce any <span class="dictionary">dealer</span> to join, contribute to, or <span class="dictionary">affiliate</span> with any advertising association. <a id="paragraph-311854" class="section-permalink" href="https://vacode.org/46.2-1573.5/#3"><i class="fa fa-link"/></a></p></section>
						<section id="4"><p><span class="prefix-number">4.</span> To prevent or refuse to approve the sale or transfer of the ownership of a dealership by the sale of the business, stock transfer, or otherwise, or the transfer, sale, or assignment of a <span class="dictionary">dealer</span> <span class="dictionary">franchise</span>, or a change in the executive management or principal <span class="dictionary">operator</span> of the dealership, unless the franchisor provides written notice to the <span class="dictionary">dealer</span> of its objection and the reasons therefor at least 30 days prior to the proposed effective date of the transfer, sale, assignment, or change. No such objection shall be effective to prevent the sale, transfer, assignment, or change if the <span class="dictionary">Commissioner</span> has determined, if requested in writing by the <span class="dictionary">dealer</span> within 30 days after receipt of an objection to the proposed sale, transfer, or change, and after a <span class="dictionary">hearing</span> on the matter, that the failure to permit or honor the sale, transfer, assignment, or change is unreasonable under the circumstances. No <span class="dictionary">franchise</span> may be sold, assigned, or transferred unless (i) the franchisor has been given at least 90 days&#x2019; prior written notice by the <span class="dictionary">dealer</span> as to the identity, financial ability, and qualifications of the proposed transferee and (ii) the sale or transfer of the <span class="dictionary">franchise</span> and business will not involve, without the franchisor&#x2019;s consent, a relocation of the business. <a id="paragraph-311855" class="section-permalink" href="https://vacode.org/46.2-1573.5/#4"><i class="fa fa-link"/></a></p></section>
						<section id="5"><p><span class="prefix-number">5.</span> To grant an additional <span class="dictionary">franchise</span> for a particular <span class="dictionary">line-make</span> of <span class="dictionary">recreational vehicle</span> in a <span class="dictionary">relevant market area</span> in which a dealer or <span class="dictionary">dealers</span> in that <span class="dictionary">line-make</span> are already located unless the franchisor has first advised in writing all other <span class="dictionary">dealers</span> in the <span class="dictionary">line-make</span> in the <span class="dictionary">relevant market area</span>. No such additional <span class="dictionary">franchise</span> may be established at the proposed site unless the <span class="dictionary">Commissioner</span> has determined, if requested by a dealer of the same <span class="dictionary">line-make</span> in the <span class="dictionary">relevant market area</span> within 30 days after receipt of the franchisor&#x2019;s notice of intention to establish the additional <span class="dictionary">franchise</span>, and after a <span class="dictionary">hearing</span> on the matter, that there is reasonable <span class="dictionary">evidence</span> that after the grant of the <span class="dictionary">new</span> <span class="dictionary">franchise</span>, the market will support all of the <span class="dictionary">dealers</span> in that <span class="dictionary">line-make</span> in the <span class="dictionary">relevant market area</span>. Establishing a <span class="dictionary">franchised dealer</span> in a <span class="dictionary">relevant market area</span> to replace a <span class="dictionary">franchised dealer</span> that has not been in operation for more than two years shall constitute the establishment of a <span class="dictionary">new</span> <span class="dictionary">franchise</span> subject to the terms of this subdivision. The two-year period for replacing a <span class="dictionary">franchised dealer</span> shall begin on the day the <span class="dictionary">franchise</span> was terminated or, if a termination <span class="dictionary">hearing</span> was held, on the day the franchisor was legally permitted finally to terminate the <span class="dictionary">franchise</span>. This subdivision shall not apply to (i) the relocation of an existing dealer within that dealer&#x2019;s <span class="dictionary">relevant market area</span> if the relocation site is to be more than 10 miles distant from any other dealer for the same <span class="dictionary">line-make</span>; (ii) the relocation of an existing dealer within that dealer&#x2019;s <span class="dictionary">relevant market area</span> if the relocation site is to be more distant than the existing site from all other <span class="dictionary">dealers</span> of the same <span class="dictionary">line-make</span> in that <span class="dictionary">relevant market area</span>; or (iii) the relocation of an existing <span class="dictionary">new</span> <span class="dictionary">recreational vehicle</span> dealer within two miles of the existing site of the relocating dealer. <a id="paragraph-311856" class="section-permalink" href="https://vacode.org/46.2-1573.5/#5"><i class="fa fa-link"/></a></p></section>
						<section id="6"><p><span class="prefix-number">6.</span> Except as otherwise provided in this subdivision and notwithstanding the terms of any <span class="dictionary">franchise</span>, to terminate, <span class="dictionary">cancel</span>, or refuse to renew the <span class="dictionary">franchise</span> of any dealer without good cause and unless (i) the dealer and the <span class="dictionary">Commissioner</span> have received written notice of the franchisor&#x2019;s intentions at least 60 days prior to the effective date of such termination, <span class="dictionary">cancellation</span>, or the expiration date of the <span class="dictionary">franchise</span>, setting forth the specific grounds for the action, and (ii) the <span class="dictionary">Commissioner</span> has determined, if requested in writing by the dealer within the 60-day period and, after a <span class="dictionary">hearing</span> on the matter, that there is good cause for the termination, <span class="dictionary">cancellation</span>, or nonrenewal of the <span class="dictionary">franchise</span>. In any case where a <span class="dictionary">petition</span> is made to the <span class="dictionary">Commissioner</span> for a determination as to good cause for the termination, <span class="dictionary">cancellation</span>, or nonrenewal of a <span class="dictionary">franchise</span>, the <span class="dictionary">franchise</span> in question shall continue in effect pending the <span class="dictionary">Commissioner</span>&#x2019;s decision or, if that decision is appealed to the <span class="dictionary">circuit</span> <span class="dictionary">court</span>, pending the decision of the <span class="dictionary">circuit</span> <span class="dictionary">court</span>. In any case in which a franchisor neither advises a dealer that it does not intend to renew a <span class="dictionary">franchise</span> nor takes any action to renew a <span class="dictionary">franchise</span> beyond its expiration date, the <span class="dictionary">franchise</span> in question shall continue in effect on the terms last agreed to by the parties. Notwithstanding the other provisions of this subdivision, notice of termination, <span class="dictionary">cancellation</span>, or nonrenewal may be provided to a dealer by a franchisor not less than 15 days prior to the effective date of such termination, <span class="dictionary">cancellation</span>, or nonrenewal when the grounds for such action are any of the following:
			a. Insolvency of the franchised <span class="dictionary">recreational vehicle</span> dealer or filing of any <span class="dictionary">petition</span> by or against the franchised <span class="dictionary">recreational vehicle</span> dealer, under any <span class="dictionary">bankruptcy</span> or receivership <span class="dictionary">law</span>, leading to <span class="dictionary">liquidation</span> or that is intended to lead to <span class="dictionary">liquidation</span> of the franchisee&#x2019;s business;
			b. Failure of the franchised <span class="dictionary">recreational vehicle</span> dealer to conduct its customary sales and service operations during its posted business hours for seven consecutive business days, except where the failure results from acts of God or circumstances beyond the direct control of the franchised <span class="dictionary">recreational vehicle</span> dealer;
			c. <span class="dictionary">Revocation</span> of any license that the franchised <span class="dictionary">recreational vehicle</span> dealer is required to have to operate a dealership; or
			d. <span class="dictionary">Conviction</span> of the dealer or any principal of the dealer of a <span class="dictionary">felony</span>.
			The change or discontinuance of a marketing or distribution system of a particular <span class="dictionary">line-make</span> product by a <span class="dictionary">manufacturer</span> or distributor, while the name identification of the product is continued in substantial form by the same or different <span class="dictionary">manufacturer</span> or distributor, may be considered to be a <span class="dictionary">franchise</span> termination, <span class="dictionary">cancellation</span>, or nonrenewal. <a id="paragraph-311857" class="section-permalink" href="https://vacode.org/46.2-1573.5/#6"><i class="fa fa-link"/></a></p></section>
						<section id="7"><p><span class="prefix-number">7.</span> To fail to provide continued parts and service support to a dealer that holds a <span class="dictionary">franchise</span> in a discontinued <span class="dictionary">line-make</span> for at least five years from the date of such discontinuance. <a id="paragraph-311858" class="section-permalink" href="https://vacode.org/46.2-1573.5/#7"><i class="fa fa-link"/></a></p></section>
						<section id="8"><p><span class="prefix-number">8.</span> To fail to allow a dealer the right at any time to designate a member of his family as a successor to the dealership in the event of the death or incapacity of the dealer. It shall be unlawful to prevent or refuse to honor the succession to a dealership by a member of the family of a deceased or incapacitated dealer if the franchisor has not provided to the member of the family previously designated by the dealer as his successor written notice of its objections to the succession and of such person&#x2019;s right to seek a <span class="dictionary">hearing</span> on the matter before the <span class="dictionary">Commissioner</span> pursuant to this article, and the <span class="dictionary">Commissioner</span> determines, if requested in writing by such member of the family within 30 days of receipt of such notice from the franchisor, and after a <span class="dictionary">hearing</span> on the matter before the <span class="dictionary">Commissioner</span> pursuant to this article, that the failure to permit or honor the succession is unreasonable under the circumstances. No member of the family may succeed to a <span class="dictionary">franchise</span> unless (i) the franchisor has been given written notice as to the identity, financial ability, and qualifications of the member of the family in question and (ii) the succession to the <span class="dictionary">franchise</span> will not involve, without the franchisor&#x2019;s consent, a relocation of the business. <a id="paragraph-311859" class="section-permalink" href="https://vacode.org/46.2-1573.5/#8"><i class="fa fa-link"/></a></p></section>
						<section id="9"><p><span class="prefix-number">9.</span> To fail to ship monthly to any dealer, if ordered by the dealer, the number of <span class="dictionary">new</span> <span class="dictionary">recreational vehicles</span> of each make, series, and model needed by the dealer to receive a percentage of total <span class="dictionary">new</span> <span class="dictionary">recreational vehicle</span> sales of each make, series, and model equitably related to the total <span class="dictionary">new</span> <span class="dictionary">recreational vehicle</span> production or importation currently being achieved nationally by each make, series, and model covered under the <span class="dictionary">franchise</span>. Upon the written request of any dealer holding its sales or sales and service <span class="dictionary">franchise</span>, the <span class="dictionary">manufacturer</span> or distributor shall disclose to the dealer in writing the basis upon which <span class="dictionary">new</span> <span class="dictionary">recreational vehicles</span> are allocated, scheduled, and delivered to the <span class="dictionary">dealers</span> of the same <span class="dictionary">line-make</span>. If allocation is at <span class="dictionary">issue</span> in a request for a <span class="dictionary">hearing</span>, the dealer may demand the <span class="dictionary">Commissioner</span> to direct that the <span class="dictionary">manufacturer</span> or distributor provide to the dealer, within 30 days of such demand, all records of sales and all records of distribution of all <span class="dictionary">recreational vehicles</span> to the same <span class="dictionary">line-make</span> <span class="dictionary">dealers</span> who compete with the dealer requesting the <span class="dictionary">hearing</span>. <a id="paragraph-311860" class="section-permalink" href="https://vacode.org/46.2-1573.5/#9"><i class="fa fa-link"/></a></p></section>
						<section id="10"><p><span class="prefix-number">10.</span> To require or otherwise coerce a dealer to underutilize the dealer&#x2019;s facilities. <a id="paragraph-311861" class="section-permalink" href="https://vacode.org/46.2-1573.5/#10"><i class="fa fa-link"/></a></p></section>
						<section id="11"><p><span class="prefix-number">11.</span> To include in any <span class="dictionary">franchise</span> with a <span class="dictionary">recreational vehicle</span> dealer terms that are contrary to, prohibited by, or otherwise inconsistent with the requirements of this chapter. <a id="paragraph-311862" class="section-permalink" href="https://vacode.org/46.2-1573.5/#11"><i class="fa fa-link"/></a></p></section>
						<section id="12"><p><span class="prefix-number">12.</span> To require under any <span class="dictionary">franchise</span> agreement a <span class="dictionary">recreational vehicle</span> dealer to pay the attorney fees of the <span class="dictionary">manufacturer</span> or distributor related to <span class="dictionary">hearings</span> and <span class="dictionary">appeals</span> brought under this article. <a id="paragraph-311863" class="section-permalink" href="https://vacode.org/46.2-1573.5/#12"><i class="fa fa-link"/></a></p></section>
						<section id="13"><p><span class="prefix-number">13.</span> To fail to include in any <span class="dictionary">franchise</span> with a <span class="dictionary">recreational vehicle</span> dealer the following language: &#x201C;If any provision herein contravenes the <span class="dictionary">laws</span> or regulations of any state or other <span class="dictionary">jurisdiction</span> wherein this agreement is to be performed, or denies access to the procedures, forums, or remedies provided for by such <span class="dictionary">laws</span> or regulations, such provision shall be deemed to be modified to conform to such <span class="dictionary">laws</span> or regulations, and all other terms and provisions shall remain in full force,&#x201D; or words to that effect. <a id="paragraph-311864" class="section-permalink" href="https://vacode.org/46.2-1573.5/#13"><i class="fa fa-link"/></a></p></section></text><history>1995, cc. 767, 816, &#xA7; 46.2-1976; 1996, cc. 1043, 1052; 2015, c. 615.</history><metadata></metadata></law>
