Current through the 2024 Fourth Special Session
Section 13-14-308 - Private right of action(1) A franchisee has a private right of action for actual damages and reasonable attorney fees against a franchisor for a violation of this chapter that results in damage to the franchisee.(2)(a) As used in this Subsection (2): (i) "New franchisor" has the same meaning as defined in Section 13-14-302.5.(ii) "Reinstated franchise" has the same meaning as defined in Section 13-14-302.5.(iii) "Reinstated franchisee" has the same meaning as defined in Section 13-14-302.5.(b) A reinstated franchisee has a private right of action for actual damages and reasonable attorney fees against a new franchisor if: (i) the new franchisor: (A) establishes a new franchisee of the same line-make as a line-make of the reinstated franchisee within the relevant market area of the reinstated franchisee; or(B) adds a line-make to another franchisor's existing franchisee within the relevant market area of the reinstated franchisee that is the same line-make as a line-make of the reinstated franchisee; and(ii) the franchisor's action under Subsection (2)(b)(i) causes a substantial diminution in value of the reinstated franchisee's reinstated franchise.(c) A new franchisor may not be held liable under Subsection (2)(b) based on a franchisee's purchase of another existing franchise, both of which are within the relevant market area of a reinstated franchisee, for the purpose of combining the purchased franchise with the franchise of the purchasing franchisee.Amended by Chapter 41, 2010 General Session .