Florida Statute 320.641 | Lawyer Caselaw & Research

The 2024 Florida Statutes

Title XXIII
MOTOR VEHICLES

Chapter 320
MOTOR VEHICLE LICENSES

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F.S. 320.641

320.641 Discontinuations, cancellations, nonrenewals, modifications, and replacement of franchise agreements.—

(1)(a) An applicant or licensee shall give written notice to the motor vehicle dealer and the department of the licensee’s intention to discontinue, cancel, or fail to renew a franchise agreement or of the licensee’s intention to modify a franchise or replace a franchise with a succeeding franchise, which modification or replacement will adversely alter the rights or obligations of a motor vehicle dealer under an existing franchise agreement or will substantially impair the sales, service obligations, or investment of the motor vehicle dealer, at least 90 days before the effective date thereof, together with the specific grounds for such action.

(b) The failure by the licensee to comply with the 90-day notice period and procedure prescribed herein shall render voidable, at the option of the motor vehicle dealer, any discontinuation, cancellation, nonrenewal, modification, or replacement of any franchise agreement. Designation of a franchise agreement at a specific location as a “nondesignated point” shall be deemed an evasion of this section and constitutes an unfair cancellation.

(2) Franchise agreements are deemed to be continuing unless the applicant or licensee has notified the department of the discontinuation of, cancellation of, failure to renew, modification of, or replacement of the agreement of any of its motor vehicle dealers; and annual renewal of the license provided for under ss. 320.60-320.70 is not necessary for any cause of action against the licensee.

(3) Any motor vehicle dealer who receives a notice of intent to discontinue, cancel, not renew, modify, or replace may, within the 90-day notice period, file a petition or complaint for a determination of whether such action is an unfair or prohibited discontinuation, cancellation, nonrenewal, modification, or replacement. Agreements and certificates of appointment shall continue in effect until final determination of the issues raised in such petition or complaint by the motor vehicle dealer. A discontinuation, cancellation, or nonrenewal of a franchise agreement is unfair if it is not clearly permitted by the franchise agreement; is not undertaken in good faith; is not undertaken for good cause; or is based on an alleged breach of the franchise agreement which is not in fact a material and substantial breach; or, if the grounds relied upon for termination, cancellation, or nonrenewal have not been applied in a uniform and consistent manner by the licensee. If the notice of discontinuation, cancellation, or nonrenewal relates to an alleged failure of the new motor vehicle dealer’s sales or service performance obligations under the franchise agreement, the new motor vehicle dealer must first be provided with at least 180 days to correct the alleged failure before a licensee may send the notice of discontinuation, cancellation, or nonrenewal. A modification or replacement is unfair if it is not clearly permitted by the franchise agreement; is not undertaken in good faith; or is not undertaken for good cause. The applicant or licensee shall have the burden of proof that such action is fair and not prohibited.

(4) Notwithstanding any other provision of this section, the failure of a motor vehicle dealer to be engaged in business with the public for 10 consecutive business days constitutes abandonment by the dealer of his or her franchise agreement. If any motor vehicle dealer abandons his or her franchise agreement, he or she has no cause of action under this section. For the purpose of this section, a dealer shall be considered to be engaged in business with the public if a sales and service facility is open and is performing such services 8 hours a day, 5 days a week, excluding holidays. However, it will not be considered abandonment if such failure to engage in business is due to an act of God, a work stoppage, or a delay due to a strike or labor difficulty, a freight embargo, or other cause over which the motor vehicle dealer has no control, including any violation of ss. 320.60-320.70.

(5) Notwithstanding any other provision of this section, if a motor vehicle dealer has abandoned his or her franchise agreement as provided in subsection (4), the licensee may give written notice to the dealer and the department of the licensee’s intention to discontinue, cancel, or fail to renew the franchise agreement with the dealer at least 15 days before the effective date thereof, specifying the grounds for such action. A motor vehicle dealer receiving such notice may file a petition or complaint for determination of whether in fact there has been an abandonment of the franchise.

(6) If the complainant motor vehicle dealer prevails, he or she shall have a cause of action against the licensee for reasonable attorneys’ fees and costs incurred by him or her in such proceeding, and he or she shall have a cause of action under s. 320.697.

(7) Except as provided in s. 320.643, no replacement motor vehicle dealer shall be named for this point or location to engage in business and the franchise agreement shall remain in effect until a final judgment is entered after all appeals are exhausted, provided that, when a motor vehicle dealer appeals a decision upholding a discontinuation, cancellation, or nonrenewal based upon abandonment or revocation of the dealer’s license pursuant to s. 320.27, as lawful reasons for such discontinuation, cancellation, or nonrenewal, the franchise agreement shall remain in effect pending exhaustion of all appeals only if the motor vehicle dealer establishes a likelihood of success on appeal and that the public interest will not be harmed by keeping the franchise agreement in effect pending entry of final judgment after such appeal.

(8) If a transfer is proposed pursuant to s. 320.643(1) or (2) after a notice of intent to discontinue, cancel, or not renew a franchise agreement is received but, prior to the final determination, including exhaustion of all appellate remedies of a motor vehicle dealer’s complaint or petition contesting such action, the termination proceedings shall be stayed, without bond, during the period that the transfer is being reviewed by the licensee pursuant to s. 320.643. During the period that the transfer is being reviewed by the licensee, pursuant to s. 320.643, the franchise agreement shall remain in full force and effect, and the motor vehicle dealer shall retain all rights and remedies pursuant to the terms and conditions of the franchise agreement and applicable law, including all rights of transfer until such time as the licensee has accepted or rejected the proposed transfer. If the proposed transfer is rejected, the motor vehicle dealer shall retain all of its rights pursuant to s. 320.643 to an administrative determination as to whether the licensee’s rejection is in compliance with the provisions of s. 320.643, and during the pendency of any such administrative proceeding, and any related appellate proceedings, the termination proceedings shall remain stayed without bond, the franchise agreement shall remain in full force and effect, and the motor vehicle dealer shall retain all rights and remedies pursuant to the terms and conditions of the franchise agreement and applicable law, including all rights of transfer. If a transfer is approved by the licensee or mandated by law, the termination proceedings shall be dismissed with prejudice as moot. This subsection applies only to the first two proposed transfers pursuant to s. 320.643(1) or (2) after notice of intent to discontinue, cancel, or not renew is received.

History.—s. 9, ch. 70-424; s. 1, ch. 70-439; s. 3, ch. 76-168; s. 1, ch. 77-457; ss. 6, 16, 17, ch. 80-217; ss. 2, 3, ch. 81-318; s. 6, ch. 84-69; ss. 11, 20, 21, ch. 88-395; s. 4, ch. 91-429; s. 373, ch. 95-148; s. 22, ch. 2001-196; s. 2, ch. 2007-195; s. 3, ch. 2017-187.

F.S. 320.641 on Google Scholar

F.S. 320.641 on Casetext

Amendments to 320.641

Arrestable Offenses / Crimes under Fla. Stat. 320.641

Level: Degree
Misdemeanor/Felony: First/Second/Third

Current data shows no reason an arrest or criminal charge should have occurred directly under Florida Statute 320.641.

Annotations, Discussions, Cases:

Cases Citing Statute 320.641

Total Results: 20

PORSCHE CARS NORTH AMERICA, INC. v. COPANS MOTORS, INC., d/b/a CHAMPION PORSCHE

Court: District Court of Appeal of Florida | Date Filed: 2022-05-04

Snippet: procedures set forth in Florida Statute §320.641. [The dealer] seeks a declaration that [it]

PORSCHE CARS NORTH AMERICA, INC. v. COPANS MOTORS, INC., d/b/a CHAMPION PORSCHE

Court: District Court of Appeal of Florida | Date Filed: 2022-04-20

Snippet: procedures set forth in Florida Statute §320.641. [The dealer] seeks a declaration that [it]

RECOVERY RACING, LLC d/b/a MASERATI OF FT. LAUDERDALE v. MASERATI NORTH AMERICA, INC.

Court: District Court of Appeal of Florida | Date Filed: 2019-01-09

Citation: 261 So. 3d 600

Snippet: determination that the dealers were entitled to section 320.641 fairness hearings on the challenged policies; we

Winter Park Imports, Inc. v. JM Family Enterprises

Court: District Court of Appeal of Florida | Date Filed: 2011-07-01

Citation: 66 So. 3d 336, 2011 Fla. App. LEXIS 10379, 2011 WL 2581758

Snippet: final determination by the department under s. 320.641(3). [2] Section 320.697 Civil damages.Any person

Palmetto Ford Truck Sales, Inc. v. Sterling Truck Corp.

Court: District Court of Appeal of Florida | Date Filed: 2010-06-09

Citation: 38 So. 3d 205, 2010 Fla. App. LEXIS 8178, 2010 WL 2292933

Snippet: an administrative hearing pursuant to section 320.641(3), Florida Statutes (2008), which provides: "Any

Beckford v. General Motors Corp.

Court: District Court of Appeal of Florida | Date Filed: 2006-01-18

Citation: 919 So. 2d 612, 2006 Fla. App. LEXIS 291, 2006 WL 120179

Snippet: Vehicle Licensing Act ("FMVLA"), sections 320.60-320.641, Florida Statutes (2002), which were not raised

Brooks v. St. John's Motor Sales, Inc.

Court: District Court of Appeal of Florida | Date Filed: 2002-05-03

Citation: 814 So. 2d 1237, 2002 Fla. App. LEXIS 6032, 2002 WL 851242

Snippet: Complaint, the Plaintiff alleges violation of § 320.641 and § 320.645, Fla. Stat., and has asked that the

Chrysler v. FLA. DEPT. OF HIGHWAY SAFETY

Court: District Court of Appeal of Florida | Date Filed: 1998-09-28

Citation: 720 So. 2d 563

Snippet: challenge to the facial constitutionality of section 320.641(3), Florida Statutes (1995). Key Haven Associated

Pearson v. Ford Motor Co.

Court: District Court of Appeal of Florida | Date Filed: 1997-04-14

Citation: 694 So. 2d 61, 1997 WL 174345

Snippet: Florida ADDA. Appellant alleges violation of section 320.641, unfair cancellation of franchise agreements; section

Aero Products Corp. v. Department of Highway Safety & Motor Vehicles

Court: District Court of Appeal of Florida | Date Filed: 1996-06-14

Citation: 675 So. 2d 661, 1996 Fla. App. LEXIS 6303, 1996 WL 324665

Snippet: limited class of dealers protected by section 320.641, Florida Statutes (1993). The Department of Highway

Ferrari North America, Inc. v. Crown Auto Dealerships, Inc.

Court: District Court of Appeal of Florida | Date Filed: 1995-08-10

Citation: 658 So. 2d 1187, 1995 Fla. App. LEXIS 8488, 1995 WL 469641

Snippet: Dealerships, Inc. (Crown) pursuant to section 320.641, Florida Statutes (1993). We affirm. Ferrari and

Gus Machado Buick-GMC Truck, Inc. v. General Motors Corp.

Court: District Court of Appeal of Florida | Date Filed: 1993-08-30

Citation: 623 So. 2d 810, 1993 Fla. App. LEXIS 8937, 1993 WL 328485

Snippet: 1991, GM notified Machado, pursuant to Sections 320.641(4) and (5), Florida Statutes (1989), that it was

Barry Cook Ford, Inc. v. Ford Motor Co.

Court: District Court of Appeal of Florida | Date Filed: 1993-03-18

Citation: 616 So. 2d 512, 1993 Fla. App. LEXIS 3213, 1993 WL 74951

Snippet: Motor Vehicles (DHSMV) on the authority of section 320.641, Florida Statutes (1987), seeking a determination

General Motors Corp. v. Gus Machado Buick-GMC, Inc.

Court: District Court of Appeal of Florida | Date Filed: 1991-06-12

Citation: 581 So. 2d 637, 1991 Fla. App. LEXIS 5638, 1991 WL 103480

Snippet: remedy is expressly provided for in subsections 320.641(4) and (5), Florida Statutes (1989). The notice

MERCEDES-BENZ OF NA v. Mike Smith Pontiac GMC, Inc.

Court: District Court of Appeal of Florida | Date Filed: 1990-05-03

Citation: 561 So. 2d 620

Snippet: complaint with the Department pursuant to section 320.641, Florida Statutes (1985), alleging unfair termination

Mercedes-Benz of Na v. Dept. of Mv

Court: District Court of Appeal of Florida | Date Filed: 1984-07-11

Citation: 455 So. 2d 404

Snippet: the 1980 amendment, reasoning that under section 320.641(3), Florida Statutes (1971), all beneficial changes

J. R. Furlong, Inc. v. Chrysler Corp.

Court: District Court of Appeal of Florida | Date Filed: 1982-09-14

Citation: 419 So. 2d 385, 1982 Fla. App. LEXIS 21166

Snippet: for attorneys’ fees filed pursuant to Section 320.-641(5), Florida Statutes (1981). The basis for the

Fiat Motors of North America, Inc. v. Calvin

Court: District Court of Appeal of Florida | Date Filed: 1978-03-28

Citation: 356 So. 2d 908, 1978 Fla. App. LEXIS 15561

Snippet: dealership franchise of Alpine Motors, Inc. Section 320.641(3), Florida Statutes (1977), provides: *909(3)

FIAT MOTORS OF NORTH AM., INC. v. Calvin

Court: District Court of Appeal of Florida | Date Filed: 1978-03-28

Citation: 356 So. 2d 908

Snippet: dealership franchise of Alpine Motors, Inc. Section 320.641(3), Florida Statutes (1977), provides: *909 (3)

International Harvester Co. v. Calvin

Court: District Court of Appeal of Florida | Date Filed: 1977-11-29

Citation: 353 So. 2d 144

Snippet: Motors. The Director has so acted under Section 320.641, Florida Statutes (1975), which allows him to find