{"data":{"id":"us-ky/krs-190.047","jurisdiction":"us-ky","citation":"KRS 190.047","heading":"Transfer of motor vehicle sales franchise -- Proposal to establish additional","body":"dealership or to relocate existing dealership.\n(1) Unless a franchise specifically states to the contrary, no franchise or any interest in a\nfranchise may be sold, transferr ed, or assigned without the approval of the\nmanufacturer or distributor.\n(2) A dealer desiring to sell, transfer, or assign all or any portion of his franchise shall\nsubmit a written proposal of the sale, transfer, or assignment to the manufacturer or\ndistributor, and approval of the proposal shall not be arbitrarily or unreasonably\nwithheld.\n(3) The refusal of the manufacturer or the distributor to approve a proposed sale,\ntransfer, or assignment shall be subject to review by the licensor, if a written\napplication for review is filed with the licensor, with notice to the manufacturer or\ndistributor, within thirty (30) days of the date of the refusal. The refusal shall not be\nfinal until the licensor, after a hearing has been held in accordance with the\nprovisions of KRS Chapter 13B, has determined that the approval was not\narbitrarily or unreasonably withheld.\n(4) The burden of proof shall be on the dealer to show that the approval of the sale,\ntransfer, or assignment of any interest in the franchise was arb itrarily or\nunreasonably withheld. Factors to be considered in determining whether the\nmanufacturer or distributor acted arbitrarily or unreasonably shall include whether\nthe basic financial and facility requirements of the franchise will be met by the\nproposed transfer, sale, or assignment and that the proposed purchaser, transferee,\nor assignee is capable of operating, managing, and supervising the operation of the\nbusiness in question.\n(5) Failure of the manufacturer or distributor to abide by the final order of the licensor\nor to continue the franchise in effect pending the final determination of the issue by\nthe licensor shall be cause for the licensor to refuse to issue a subsequent license in\nthe same county or franchise area to an applicant who will be selling the same\nmotor vehicles as the former dealer for the same manufacturer or distributor.\n(6) If a manufacturer, distributor, factory branch, or factory representative seeks to:\n(a) Enter into a franchise establishing an additional new motor vehicl e dealership\nfacility;\n(b) Establish an additional new motor vehicle dealership facility under an existing\nfranchise; or\n(c) Relocate an existing new motor vehicle dealership facility, within or into a\nrelevant market area where the same line make is then represented,\nthe manufacturer, distributor, factory branch, or factory representative shall, in\nwriting, first notify the licensor, and each new motor vehicle dealer in the line make\nin the relevant market area, of the intention to establish an additional  new motor\nvehicle dealership facility, or to establish an additional new motor vehicle\ndealership facility under an existing franchise, or to relocate an existing new motor\nvehicle dealership facility within or into that market area. The relevant market a rea\nshall be a radius of ten (10) miles around an existing new motor vehicle dealership\nfacility. Within fifteen (15) days of receiving the notice, or within fifteen (15) days\nafter the end of any appeal procedure provided by the manufacturer, distributor,\nfactory branch, or factory representative, any new motor vehicle dealership may file\nwith the licensor a protest to the establishment or relocation of the new motor\nvehicle dealership facility. When a protest is filed, the licensor shall inform the\nmanufacturer, distributor, factory branch, or factory representative that a timely\nprotest has been filed and that the manufacturer, distributor, factory branch, or\nfactory representative shall not establish or relocate the proposed new motor vehicle\ndealership facility until the licensor has held a hearing in accordance with KRS\nChapter 13B, if the licensor has determined that there is good cause for permitting\nthe new motor vehicle dealership facility. For the purposes of this section, the\nreopening in a releva nt market area of a new motor vehicle dealership that has not\nbeen in operation for two (2) years or more shall be deemed the establishment of an\nadditional new motor vehicle dealership facility.\n(7) In determining whether good cause has been established f or entering into an\nadditional franchise for the same line make, or establishing an additional new motor\nvehicle dealership facility under an existing franchise, or relocating an existing new\nmotor vehicle dealership facility within or into a relevant mark et area where the\nsame line make is then represented, the licensor shall take into consideration the\nexisting circumstances, including, but not limited to:\n(a) Permanency of the investment;\n(b) Whether the new motor vehicle dealer of the same line make in that relevant\nmarket area is providing adequate competition and convenient consumer care\nfor the motor vehicles of the line make in the market area, which shall include\nthe adequacy of motor vehicle sales and service facilities, equipment, supply\nof vehicle parts, and qualified service personnel; and\n(c) Growth, or decline in population and new car registrations in the relevant\nmarket areas.\nIn the case of the establishment of an additional new motor vehicle dealership\nfacility under an existing franchise, good cause shall not be found if the additional\nfacility fails to offer a range of service, including, but not limited to sales, service,\nparts, and financing.\n(8) Any parties to a hearing by the licensor concerning the establishing or relocating of\na new motor vehicle dealership shall have a right of judicial review of the final\norder in accordance with KRS Chapter 13B.\n(9) The provisions of this section shall apply to the personal representative, executor, or\nadministrator of the estate of an individual who had an interest in a franchise, or to\nthe guardian or conservator of an individual who has been declared mentally\ndisabled and who has that interest for one (1) year following appointment.\n(10) The provisions of this section do not apply to:\n(a) The relocation of an existing dealership within that dealer's area of\nresponsibility contained in its franchise agreement, provided the relocation  is\nnot within five (5) miles of a new motor vehicle dealer of the same line make;\nor\n(b) The relocation of an existing new motor vehicle dealership facility to a site\nthat is further away from an existing dealership of the same line make.","path":["KRS Chapter 190"],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=6541","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:51:45Z","sha256":"04f2913295ec744dfd93cd4b6416fe31eaa4a8478c97730dc30ea735301b9099","source_id":"us-ky","stale":false,"prev":"us-ky/krs-190.0462","next":"us-ky/krs-190.049"},"notice":"GroundRules: Original legal text. Not legal advice."}