§ 756. Sale or transfer by wholesale dealer
(a)(1) In the absence of a provision of the franchise to the contrary, a wholesale dealer
wishing to sell or otherwise transfer its interests in a franchise shall give at least
90 days’ written notice of the proposed sale or transfer to the certificate of approval
holder or manufacturer.
(2) The notice of intended sale or transfer shall give the full name and address of the
proposed transferee, along with full details outlining the qualifications of the proposed
transferee that, in the opinion of the wholesale dealer, make the proposed transferee
competent to operate the franchise.
(b) If the certificate of approval holder or manufacturer opposes the proposed sale or
transfer to the proposed transferee, the certificate of approval holder or manufacturer
may either:
(1) prevent the proposed sale or transfer from occurring by paying compensation for the
wholesale dealer’s interest in the franchise in the same manner as if the franchise
were being terminated for no cause pursuant to section 755 of this subchapter; or
(2) not less than 60 days before the date of the proposed sale or transfer, file a petition
with the Superior Court that clearly states the certificate of approval holder’s or
manufacturer’s reasons for resisting the proposed sale or transfer.
(c)(1) Upon receipt of a petition pursuant to subdivision (b)(2) of this section, the Superior
Court shall hold a hearing on the proposed transfer or sale. The court shall make
a full inquiry into the qualifications of the proposed transferee and shall determine
whether or not the proposed transferee is in a position to continue substantially
the operations of the franchise, to assume the obligations of the franchise holder,
and to conduct the business in a manner that will protect the legitimate interests
of the certificate of approval holder or manufacturer.
(2) If the Superior Court finds the proposed transferee is qualified to operate the franchise,
it shall approve the transfer of the franchise to the proposed transferee.
(d) The provisions of subsections (b) and (c) of this section shall not apply to the sale
or transfer of a franchise to the spouse, child, grandchild, sibling, parent, foster
child, child-in-law, sibling-in-law, niece, or nephew of the owner of the wholesale
dealer. (Added 2017, No. 145 (Adj. Sess.), § 5, eff. Jan. 1, 2019; amended 2017, No. 145 (Adj. Sess.), § 9, eff. July 1, 2022.)