Minnesota Legislature
Office of the Revisor of Statutes
2006 Minnesota Statutes
This is an historical version of this statute chapter. Also view the most recent published version.
80E.07 CANCELLATION, TERMINATION, OR NONRENEWAL; LIMITATIONS.
Subdivision 1. Circumstances not constituting good cause. Notwithstanding the terms
of any franchise agreement or waiver to the contrary, the following examples represent
circumstances which do not by themselves constitute good cause for the termination, cancellation,
or nonrenewal of a franchise:
(a) a change of ownership of the new motor vehicle dealer's dealership. This paragraph
does not authorize any change in ownership which would have the effect of the sale of the
franchise without the manufacturer's or distributor's consent, but consent shall not in any case be
unreasonably withheld. The burden of establishing the reasonableness is on the franchisor;
(b) the fact that the new motor vehicle dealer refused to purchase or accept delivery of any
new motor vehicle parts, accessories, or any other commodity or services not ordered by the
new motor vehicle dealer, other than parts necessary to conduct recall campaigns or perform
warranty service;
(c) the fact that the new motor vehicle dealer owns, invests in, participates in the management
of, holds a license for the sale of another make or line of new motor vehicle, or has established
another make or line of new motor vehicle in the same dealership facilities as those of the
manufacturer; provided, that the new motor vehicle dealer maintains a reasonable line of credit
for each make or line of new motor vehicle, and that the new motor vehicle dealer remains in
substantial compliance with the terms and conditions of the franchise and with any reasonable
capital, credit, or facilities' requirements of the manufacturer; or
(d) a change in the location of the new motor vehicle dealership. This paragraph does not
authorize a change in location without the manufacturer's or distributor's consent, but consent
shall not in any case be unreasonably withheld. The burden of establishing reasonableness is on
the franchisor.
Subd. 2. Burden of proof. The manufacturer has the burden of proving that it acted in good
faith; that the notice requirements have been complied with; and that there was good cause for the
franchise termination, cancellation, or nonrenewal.
History: 1981 c 59 s 8; 1982 c 452 s 2; 1988 c 611 s 5
Subdivision 1. Circumstances not constituting good cause. Notwithstanding the terms
of any franchise agreement or waiver to the contrary, the following examples represent
circumstances which do not by themselves constitute good cause for the termination, cancellation,
or nonrenewal of a franchise:
(a) a change of ownership of the new motor vehicle dealer's dealership. This paragraph
does not authorize any change in ownership which would have the effect of the sale of the
franchise without the manufacturer's or distributor's consent, but consent shall not in any case be
unreasonably withheld. The burden of establishing the reasonableness is on the franchisor;
(b) the fact that the new motor vehicle dealer refused to purchase or accept delivery of any
new motor vehicle parts, accessories, or any other commodity or services not ordered by the
new motor vehicle dealer, other than parts necessary to conduct recall campaigns or perform
warranty service;
(c) the fact that the new motor vehicle dealer owns, invests in, participates in the management
of, holds a license for the sale of another make or line of new motor vehicle, or has established
another make or line of new motor vehicle in the same dealership facilities as those of the
manufacturer; provided, that the new motor vehicle dealer maintains a reasonable line of credit
for each make or line of new motor vehicle, and that the new motor vehicle dealer remains in
substantial compliance with the terms and conditions of the franchise and with any reasonable
capital, credit, or facilities' requirements of the manufacturer; or
(d) a change in the location of the new motor vehicle dealership. This paragraph does not
authorize a change in location without the manufacturer's or distributor's consent, but consent
shall not in any case be unreasonably withheld. The burden of establishing reasonableness is on
the franchisor.
Subd. 2. Burden of proof. The manufacturer has the burden of proving that it acted in good
faith; that the notice requirements have been complied with; and that there was good cause for the
franchise termination, cancellation, or nonrenewal.
History: 1981 c 59 s 8; 1982 c 452 s 2; 1988 c 611 s 5
Official Publication of the State of Minnesota
Revisor of Statutes