Attorneys at Scali Rasmussen have represented franchised businesses for over 15 years and have advised businesses on creating, maintaining and terminating franchises. Additionally, our attorneys have litigated franchise disputes from anti-trust disputes, to franchise terminations, additions and relocations, as well as, franchisor audit disputes.
Dealer advocates against the factory
We advocate and negotiate on behalf of dealers involving disputes with a franchisor or “factory.” If necessary, we prosecute or defend Protests and Petitions filed with the California New Motor Vehicle Board. These actions include relocations, “add points” and terminations, as well as actions in which the factory attempts to impose chargebacks after a warranty or incentive audit.
When factories attempt to impose unreasonable facility demands on dealers, including providing new or exclusive sales and service facilities, committing to new signage and remodeling and/or relocating the dealership to a larger, more visible location, we advise dealers on their rights and assist them in protecting their rights and investment.
When factories attempt to “build a record” of poor sales performance or below average CSI scores and attempt to impose an amendment or addendum to your agreement requiring you to meet minimum sales and/or CSI performance indices in a given period of time, we advise dealers on their rights and obligations to best position themselves and protect their interests.
When factories “notice the market” about a change in market representation, e.g., establishment of a new dealership of the same line-make in an area serviced by a dealer, and the new dealership may severely damage business, we advise dealers on their rights and the deadlines to respond.
When factories suggest that a dealer’s chosen successor or proposed buyer will not be approved, we advise our dealer clients on whether and how to challenge that decision and how to best position themselves.
When factories conduct warranty audits and state that they intend to charge back significant sums of money as a result of alleged discrepancies purportedly uncovered in the audit, we advise dealers on how to protect themselves against improper chargebacks.
When a dealer receives a notice of termination, we advise dealers on their rights and chances of success on a Protest of that action. Should a dealer decide to challenge the decision, we fight the factory with a specialized team tailored for the success of that case.
We advise dealers on their rights when the factory fails to provide adequate or reasonable allocation of vehicles or attempts to “dump” vehicles on a dealer.