32-6E-5. Determination of cause for additional franchises of same line/make.
In determining whether cause is established for entering into an additional franchise for the same line/make, the department shall consider the existing circumstances:
(1)The amount of business transacted by existing franchisee's of the same line/make in that community;
(2)Whether the franchisee's of the same line/make in that community are making a good faith effort to sell the franchisor's product;
(3)Investment necessarily made and obligations incurred by existing franchisee's of the same line/make in the community in the performance of their part of their franchises;
(4)The effect on the retail snowmobile business as a whole in that community;
(5)The general quality and reputation of existing franchises in the community and their ability to provide consumer care and service; and
(6)Whether it is injurious to the public interest for an additional franchise to be established.
Source: SL 1994, ch 248, ยง5.
Structure South Dakota Codified Laws
Chapter 06E - Regulation Of Snowmobile Franchising Agreements
Section 32-6E-1 - Definition of terms.
Section 32-6E-2 - Termination of franchise--Hearing.
Section 32-6E-3 - Determination of cause for termination of franchise.
Section 32-6E-4 - Additional franchises of same line/make--Public interest--Hearing.
Section 32-6E-5 - Determination of cause for additional franchises of same line/make.
Section 32-6E-7 - Impermissible conditions of franchise.
Section 32-6E-9 - Notice to franchisee--Interested parties.
Section 32-6E-10 - Objection to approval of notice.
Section 32-6E-11 - Hearing on timely objection to approval of notice.
Section 32-6E-12 - Hearing on objection to notice--Franchisor's burden of proof.
Section 32-6E-13 - Hearing to determine change in circumstances sufficient to support dealership.