Facility improvements and other changes not required by franchisee, when
A car maker or franchisor cannot force a dealership to redo its building, signs, or look if those things were already updated within the last 10 years. If upgrades are needed, the dealership has the right to pick its own supplier for goods and materials, as long as the franchisor approves that supplier (and approval cannot be denied without good reason), unless the franchisor is paying enough to cover what the dealership would save by choosing its own vendor. Signs with a brand logo can be required to change more often than every 10 years, but if changes are required less than 5 years apart, the franchisor must pay for or compensate the dealership for the sign.
407.824. Facility improvements and other changes not required by , when. — 1. As used in this section, the following terms mean:
(1) "Goods", the same meaning as is ascribed to such term under section 400.2-105, except that such term shall not include moveable displays, brochures, and promotional s containing material subject to the of a or ;
(2) "", a in an amount equal to or greater than the cost of the savings that would result if the franchisee were to utilize a of the franchisee's own selection instead of using the vendor identified by the manufacturer or franchisor.
2. No manufacturer or franchisor shall or otherwise require any franchisee to construct improvements to facilities or install new s or other that replace or substantially alter improvements, signs, or elements completed within the last ten years that were required and approved by the manufacturer or franchisee. For purposes of this , the term "substantially alter" shall not include routine that is reasonably necessary to keep a franchisee's facility in a safe and attractive condition.
3. Unless the manufacturer or franchisor provides substantial reimbursement for the goods or services, no manufacturer or franchisor shall require a franchisee to purchase goods or services to make improvements to the franchisee's facilities from a vendor selected, identified, or by the manufacturer or franchisor by agreement, program, , bulletin, or otherwise, without allowing or making available to the franchisee the option to obtain goods or services of grade, kind, quality, and overall design and the same materials and characteristics from a vendor chosen by the franchisee and approved by the manufacturer or franchisor. Approval by a manufacturer or franchisor shall not be unreasonably withheld. This subsection shall not be to eliminate, impair, damage, or otherwise limit a manufacturer's or franchisor's intellectual property rights in any way.
4. The ten-year period set forth in this section shall commence for a franchisee, including such franchisee's , on the date that the manufacturer or franchisor gave written approval of the facility, facility improvements, or installation of signs or other franchise or image elements or on the date that the franchisee receives a for the improved facility, whichever is later.
5. Nothing in this section shall prohibit a manufacturer or franchisor from requiring changes or updates to signs that contain the manufacturer's* or franchisor's brand, logo, or other protected by federal intellectual property law more frequently than every ten years, provided that the manufacturer or franchisor shall offer the franchisee for the sign or pay for the sign if sign changes are required less than five years apart.
Tap any gold-underlined word to see what it means.
Source & history notes
(L. 2019 H.B. 959) *Word "manufacturer" appears in original rolls.
Legal information, not legal advice. Always confirm with the official source at revisor.mo.gov.