{"data":{"id":"us-ut/utah-code-13-14-307.5","jurisdiction":"us-ut","citation":"Utah Code § 13-14-307.5","heading":"Termination, cancellation, or nonrenewal of a recreational vehicle franchise agreement.","body":"(1) This section applies only to a recreational vehicle franchisee's termination, cancellation, or nonrenewal of:\n(a) a recreational vehicle franchise; or\n(b) a recreational vehicle line-make.\n(2)\n(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.\n(b) A franchisee has the burden of showing that a termination, cancellation, or nonrenewal is for good cause.\n(c) Good cause for a franchisee's termination, cancellation, or nonrenewal is considered to exist if:\n(i) the franchisor is convicted of or enters a plea of nolo contendere to a felony;\n(ii) the business operations of the franchisor are:\n(A) abandoned; or\n(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;\n(iii) the franchisor makes a misrepresentation that materially and adversely affects the business relationship with the recreational vehicle franchisee;\n(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\n(v) the recreational vehicle franchisor:\n(A) becomes insolvent;\n(B) declares bankruptcy; or\n(C) makes an assignment for the benefit of creditors.\n(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:\n(a)\n(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\n(ii) for a repurchase price equal to 100% of the original net invoice cost, including transportation, reduced by:\n(A) any applicable rebates and discounts to the franchisee; and\n(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;\n(b)\n(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\n(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\n(c)\n(i) any properly functioning diagnostic equipment, special tools, current signage, and other equipment and machinery that:\n(A) the franchisee purchased:\n(I) from the franchisor within five years before termination, cancellation, or nonrenewal; and\n(II) at the franchisor's request or because of the franchisor's requirement; and\n(B) are no longer usable in the normal course of the franchisee's ongoing business, as the franchisee reasonably determines; and\n(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.\n(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.","path":["Title 13 Commerce and Trade","Chapter 13-14 New Automobile Franchise Act","Part 13-14-3 Restrictions on Termination, Relocation, and Establishment of Franchises"],"source_url":"https://le.utah.gov/xcode/Title13/Chapter14/13-14-S307.5.html","current_through":"2026 General Session","vintage":"","retrieved_at":"2026-09-03T11:34:33Z","sha256":"0f5cd3e5b6f6d17639020bb4027e02201cce8ddf9797185b684ab21c627bbd57","source_id":"us-ut","stale":false,"prev":"us-ut/utah-code-13-14-307","next":"us-ut/utah-code-13-14-308"},"notice":"GroundRules: Original legal text. Not legal advice."}