HB 364 Summary

• Franchisors must provide 180 days written notice before terminating or canceling most franchises, or 90 days for insolvency, unlawful practices, or business closure; new 12-month notice requirement applies to terminations based on ownership changes, business cessation, or product line discontinuation

• Manufacturers must pay fair and reasonable compensation upon franchise termination, including vehicle inventory, parts, equipment, special tools, facility assistance, and the fair market value of the franchise itself

• Prohibits franchisors from denying franchises based on distribution system changes, ownership changes, product line discontinuation, loss of trust without material breach, or failure to maintain floor plan credit for less than 120 days

• Establishes prohibited franchisor practices including unfair competition with dealers, requiring unordered inventory or facility improvements, discriminatory vehicle allocation, and restricting multi-location or multi-brand operations

• Enhances dealer protections regarding warranty/recall compensation at retail rates, warranty claim processing within 45 days, payment within 30 days, and prevents chargebacks without audit or dealer appeal opportunity