Determination of cause for additional franchises of same line/make

SDCL § 32-6E-5 — under REGULATION OF SNOWMOBILE FRANCHISING AGREEMENTS.

SDCL § 32-6E-5

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 , § 5.