MO SB867

Franchisors are prohibited from owning or operating new motor vehicle dealerships in Missouri, with limited exceptions for temporary sales (up to 24 months, extendable 12 additional months) and bona fide relationships with independent operators expected to acquire full ownership.

Franchisors may own up to 45 percent minority interest in entities owning same line-make dealerships if eight conditions are met, including that at least 75 percent of franchisees own multiple dealership facilities and the factory had no more than ten dealerships of that line-make licensed in Missouri as of January 1, 2001.

Franchisors must specify in writing franchisees' obligations for vehicle preparation, delivery, and warranty service, and provide fair and reasonable compensation including written schedules for parts, labor, and service with adequate time allowances.

For trucks with licensed gross weight of 18,000 pounds or more, parts compensation shall equal the dealer's cost multiplied by the dealer's average percentage markup over dealer cost for parts.

Franchisors must approve or disapprove warranty and promotional claims within 30 days, with unapproved claims deemed approved; franchisees can audit claims only within 12 months of payment (or 24 months for suspected fraud) and must provide 30 days written notice before chargebacks.