SDCL § 32-6E-5: Determination of cause for additional franchises of same line/make.

In determining whether cause is established for entering into an additional franchise for the same line/make, the department shall consider the existing circumstances:

(1) The amount of business transacted by existing franchisee's of the same line/make in that community;

(2) Whether the franchisee's of the same line/make in that community are making a good faith effort to sell the franchisor's product;

(3) Investment necessarily made and obligations incurred by existing franchisee's of the same line/make in the community in the performance of their part of their franchises;

(4) The effect on the retail snowmobile business as a whole in that community;

(5) The general quality and reputation of existing franchises in the community and their ability to provide consumer care and service; and

(6) Whether it is injurious to the public interest for an additional franchise to be established.