Dealership Add Point Cases End Successfully

BSM routinely represents dealers who are relocating operations or have been awarded a new dealership point, and less often, dealers who are re-opening previously closed locations.  The Firm also assists dealers who wish to protest a proposed relocation, re-opening or addition of a new dealership point into their relevant market area.  Most recently, BSM assisted a new car dealer in Florida with the protest of a proposed new dealership point in its relevant market area, as well as a New Jersey heavy-duty truck dealer in defending a protest of the reopening of our client’s prior dealership location.  

In the Florida case, the Firm’s efforts resulted in the OEM withdrawing its notice of the proposed new dealership point.  In the New Jersey case, the Firm’s representation resulted in the Court dismissing the protest of the reopening of the prior dealership location.  What both cases have in common are (i) attorneys who are intimately familiar with the law governing dealership relocations, re-openings and new points; and (ii) dealers who make use of their state motor vehicle franchise laws.  If dealers do not timely protest a proposed relocation or addition of a dealership within their relevant market area, they will never know whether the OEM was determined to relocate or add the proposed dealership, or just “testing the waters” to see if an existing dealer would push back.  Likewise, dealers should never assume that because a change in dealership operations or location is threatened with a protest or actually protested means that they will be prevented from making the change.  Each state has specific franchise laws that are sometimes confusing, but govern who can protest a dealership change and also typically include certain factors that are to be considered in determining whether the change should be permitted.