Iowa Code

Iowa Code § 322A.11 (2026)

Condition barring change in franchise

✓ current as of July 2026

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Notwithstanding the terms, provisions, or conditions of any agreement or franchise, the following shall not be considered facts supporting a finding of good cause for the termination or noncontinuation of a franchise, or for entering into a franchise for the establishment of an additional dealership in a community for the same line-make: 1. The sole fact that franchiser desires further penetration of the market. 2. The change of ownership of the franchisee’s dealership or the change of executive management of the franchisee’s dealership, unless the franchiser, having the burden of proof, proves that such change of ownership or executive management will be substantially detrimental to the distribution of the franchiser’s motor vehicles in the community and that good cause for the termination or noncontinuation of the franchise or for the establishment of an additional dealership otherwise exists. 3. The fact that the franchisee refused to purchase or accept delivery of any motor vehicle or vehicles, parts, accessories or any other commodity or service not ordered by the franchisee. 4. The fact that the dealership moved to another facility and location within the dealership’s community which are equal to or superior to the dealership’s former location and facility or the fact that the dealership added an additional line-make to the dealership if the dealership’s facility is adequate to accommodate the additional line-make. 5. The fact that the dealership does not meet an index or standard established by the franchiser, unless the franchiser proves that the failure of the dealership to meet the index or standard will be substantially detrimental to the distribution of the franchiser’s motor vehicles in the community and that good cause for the termination or noncontinuation of the franchise or for the establishment of an additional dealership otherwise exists. [C71, 73, 75, 77, 79, 81, §322A.11] 98 Acts, ch 1075, §27; 2000 Acts, ch 1232, §26; 2001 Acts, ch 32, §36, 37, 40 Referred to in §322A.12, 322A.15, 322A.22

Notes of Decisions

Cited in 4 cases (1 in the last 5 years), 1985–2022 · leading case: Midwest Auto. III, LLC v. Iowa Dep't of Transp., 646 N.W.2d 417 (Iowa 2002).

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Midwest Auto. III, LLC v. Iowa Dep't of Transp., 646 N.W.2d 417 (Iowa 2002). · cites it 128× “" Iowa Code § 322A.11 (1999). This decision was affirmed by the district court.”

Bob Zimmerman Ford, Inc. v. Midwest Auto. I, L.L.C., 679 N.W.2d 606 (Iowa 2004). · cites it 6× “Among the statutory protections afforded a franchisee in Zimmerman’s position at the time of the challenged transaction was the following: Notwithstanding the terms, provisions or conditions of any agreement or franchise, subject to the provisions of subsection 2 of section…”

Beckman v. Carson, 372 N.W.2d 203 (Iowa 1985). · cites it 2× “That statute provides: Notwithstanding the terms, provisions, or conditions of any agreement or franchise, subject to the provisions of subsection 2 of section 322A.11, in the event of the sale or transfer of ownership of the franchisee’s dealership by sale or transfer of the…”

Sioux City Truck Sales, Inc. v. Iowa Dep't of Transp. & Peterbilt Motors Co., & Allstate Peterbilt of Clear Lake (Iowa 2022). · cites it 2× “) Additionally, Iowa Code section 322A.11 provides that certain factors cannot be considered in determining good cause for establishing an additional dealership in a community for the same line-make: 1.”

— Iowa Code § 322A.11(2) — 1 case

Midwest Auto. III, LLC v. Iowa Dep't of Transp., 646 N.W.2d 417 (Iowa 2002). “" Iowa Code § 322A.11 (1999). This decision was affirmed by the district court.”

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