In January of 2020, BSM filed a lawsuit against Ford on behalf of the New Jersey Coalition of Automobile Retailers arguing that Ford’s Lincoln Commitment Program (“LCP”) violated the New Jersey Franchise Practices Act. The LCP provides dealers participating in the Program with a per vehicle...
Operating Agreements and Ownership/Control Agreements
Written by admin on . Posted in 2024, Franchise News.
THE BEGINNINGS OF A MARRIAGE
By Andrew G. Thomas
As part of two or more individuals (each an investor) forming a new legal entity to own and operate a franchised dealership, it is important that the investors devote time to the negotiation and preparation of an ownership agreement, such...
Don’t Let the OEM Be the Only One Telling the Story
Written by admin on . Posted in 2024, Franchise News.
By Micah A. Andrews
Seasoned dealers are well familiar with receiving the standard boiler-plate OEM performance letters which periodically summarize (usually incorrectly) the dealership’s recent activities and performance. The letters typically have the same stock language about...
Best Practices for Attorney Communications
Written by admin on . Posted in 2024, Legal.
By: Nick Bader
From time to time, you may have communications with your attorneys, and dealers should want to maintain the privileged nature of those communications. The law in each state has provisions protecting those communications, but those protections can be waived. While OEMs and...
Statutory Deadlines to Approve a Sale or Exercise Right of First Refusal
Written by admin on . Posted in 2024, Transaction Update.
By Jason T. Allen
As any buyer or seller knows, factory approval of a transaction is necessary to close a deal and can also dictate the timing of the closing. Most state statutes provide a deadline by which the factory must respond to a submitted buy/sell, which can act as a backstop...