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Utah · Through 2026 General Session

Utah Code § 13-14-307.5: Termination, cancellation, or nonrenewal of a recreational vehicle franchise agreement.

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Where this section sits in the code
  1. Title 13 Commerce and Trade
  2. Chapter 13-14 New Automobile Franchise Act
  3. Part 13-14-3 Restrictions on Termination, Relocation, and Establishment of Franchises

(1) This section applies only to a recreational vehicle franchisee's termination, cancellation, or nonrenewal of:

(a) a recreational vehicle franchise; or

(b) a recreational vehicle line-make.

(2)

(a) A recreational vehicle franchisee may, at any time and with or without good cause, terminate, cancel, or not renew its recreational vehicle franchise agreement or a recreational vehicle line-make by giving 30 days' prior written notice to the recreational vehicle franchisor.

(b) A franchisee has the burden of showing that a termination, cancellation, or nonrenewal is for good cause.

(c) Good cause for a franchisee's termination, cancellation, or nonrenewal is considered to exist if:

(i) the franchisor is convicted of or enters a plea of nolo contendere to a felony;

(ii) the business operations of the franchisor are:

(A) abandoned; or

(B) closed for 10 consecutive business days, unless the closing is due to an act of God, a strike, a labor difficulty, or another cause over which the franchisor has no control;

(iii) the franchisor makes a misrepresentation that materially and adversely affects the business relationship with the recreational vehicle franchisee;

(iv) a material violation of this chapter is not cured within 30 days after the franchisee gives 30 days' written notice of the violation to the recreational vehicle franchisor; or

(v) the recreational vehicle franchisor:

(A) becomes insolvent;

(B) declares bankruptcy; or

(C) makes an assignment for the benefit of creditors.

(3) If the franchisee terminates, cancels, or does not renew the recreational vehicle franchise agreement or line-make for cause, the franchisor shall, at the franchisee's election and within 45 days after termination, cancellation, or nonrenewal, repurchase:

(a)

(i) all new, unaltered recreational vehicles, including demonstrators, that the franchisee acquired from the franchisor within 18 months before the date of the termination, cancellation, or nonrenewal; and

(ii) for a repurchase price equal to 100% of the original net invoice cost, including transportation, reduced by:

(A) any applicable rebates and discounts to the franchisee; and

(B) the cost to repair any damage to a repurchased recreational vehicle, if the vehicle is damaged after delivery to the franchisee but before repurchase occurs;

(b)

(i) all undamaged accessories and proprietary parts sold by the recreational vehicle franchisor to the franchisee within one year before termination, cancellation, or nonrenewal, if accompanied by the original invoice; and

(ii) for a repurchase price equal to 100% of the original net invoice cost, plus an additional 5% of the original net invoice cost to compensate the franchisee for packing and shipping the returned accessories and parts to the franchisor; and

(c)

(i) any properly functioning diagnostic equipment, special tools, current signage, and other equipment and machinery that:

(A) the franchisee purchased:

(I) from the franchisor within five years before termination, cancellation, or nonrenewal; and

(II) at the franchisor's request or because of the franchisor's requirement; and

(B) are no longer usable in the normal course of the franchisee's ongoing business, as the franchisee reasonably determines; and

(ii) for a repurchase price equal to 100% of the original net cost that the franchisee paid, plus any applicable shipping charges and sales taxes.

(4) A recreational vehicle franchisor shall pay the franchisee all money due under Subsection (3) within 30 days after the franchisor's receipt of the repurchased items.

Collected 2026-09-03T11:34:33Z. Source file · JSON

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