Section 2301.481 - Property Use Agreement(a) A manufacturer, distributor, or representative may not require that a dealer enter into a property use agreement as a condition of the manufacturer, distributor, or representative:(1) entering into a franchise;(2) approving a franchised dealer's application to add a line-make;(3) approving a franchised dealer's application to relocate a franchise; or(4) approving a sale or transfer of a dealer, dealership, or franchise.(b) The following provisions in a property use agreement are void and unenforceable:(1) a limitation on the franchised dealer's ability to add a line-make; or(2) a provision that binds a franchised dealer's successor.(c) A property use agreement expires on the earlier of:(1) the date provided by the property use agreement; or(2) the termination of the franchise between the parties to the property use agreement.(d) This section applies to a subsidiary of, or a person controlled by, a manufacturer, distributor, or representative.Tex. Occ. Code § 2301.481
Added by Acts 2011, 82nd Leg., R.S., Ch. 137, Sec. 11, eff. 9/1/2011.