Section 2301.454 - Modification or Replacement of Franchise(a) Notwithstanding the terms of any franchise, a manufacturer, distributor, or representative may not modify or replace a franchise if the modification or replacement would adversely affect to a substantial degree the dealer's sales, investment, or obligations to provide service to the public, unless: (1) the manufacturer, distributor, or representative provides written notice by registered or certified mail to each affected dealer and the department of the modification or replacement; and(2) if a protest is filed under this section, the board approves the modification or replacement.(b) The notice required by Subsection (a)(1) must:(1) be given not later than the 60th day before the date of the modification or replacement; and(2) contain on its first page a conspicuous statement that reads: "NOTICE TO DEALER: YOU MAY BE ENTITLED TO FILE A PROTEST WITH THE TEXAS DEPARTMENT OF MOTOR VEHICLES IN AUSTIN, TEXAS, AND HAVE A HEARING IN WHICH YOU MAY PROTEST THE PROPOSED MODIFICATION OR REPLACEMENT OF YOUR FRANCHISE UNDER THE TERMS OF CHAPTER 2301, OCCUPATIONS CODE, IF YOU OPPOSE THIS ACTION."(c) A franchised dealer may file a protest with the board of the modification or replacement not later than the latter of: (1) the 60th day after the date of the receipt of the notice; or(2) the time specified in the notice.(d) After a protest is filed, the board shall determine whether the manufacturer, distributor, or representative has established by a preponderance of the evidence that there is good cause for the proposed modification or replacement. The prior franchise continues in effect until the board resolves the protest.Tex. Occ. Code § 2301.454
Amended by Acts 2021, Texas Acts of the 87th Leg. - Regular Session, ch. 276,Sec. 4, eff. 9/1/2021.Amended By Acts 2011, 82nd Leg., R.S., Ch. 1290, Sec. 15, eff. 9/1/2011.Amended by Acts 2003, 78th Leg., ch. 1276, Sec. 14A.615, eff. 9/1/2003.Added by Acts 2001, 77th Leg., ch. 1421, Sec. 5, eff. 6/1/2003.