HF1157 Summary

• Establishes new chapter 80G regulating franchise agreements for outdoor sport equipment (snowmobiles, all-terrain vehicles, personal watercraft, watercraft, off-highway motorcycles) between manufacturers/distributors and dealers.

• Requires written dealership agreements between manufacturers and dealers, with mandatory terms including territory, duration, performance standards, termination notice provisions, warranty obligations, and dispute resolution procedures.

• Prohibits manufacturers from unreasonably withholding consent to sale or transfer of dealerships to qualified buyers, with 60-day deemed consent if no response provided.

• Establishes "good cause" grounds for manufacturer termination including dealer non-compliance with essential requirements, substantial agreement breaches, bankruptcy, business abandonment, felony convictions, and failure to meet market penetration standards; requires burden of proof on manufacturer.

• Requires manufacturers to repurchase dealer inventory at cost upon termination (except for good cause), establish warranty claim approval/payment timelines (30 days), and compensate dealers for warranty work at established hourly rates plus 35% markup for parts and business costs.