Iowa Code

Iowa Code § 322A.12 (2026)

Sale or transfer of ownership

✓ current as of July 2026

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1. Notwithstanding the terms, provisions, or conditions of an agreement or franchise, subject to the provisions of section 322A.11, subsection 2, in the event of the sale or transfer of ownership of a franchisee’s dealership by sale or transfer of the business or by stock transfer or in the event of a change in the executive management of a franchisee’s dealership, the franchiser shall give effect to the change in the franchise unless the transfer\n\nTue Dec 09 22:15:43 2025 Iowa Code 2026, Chapter 322A (27, 0) 7 MOTOR VEHICLE FRANCHISERS, §322A.15\n\nof the franchisee’s license under chapter 322 is denied or the new owner is unable to obtain a license under that chapter. 2. Notwithstanding the terms, provisions, or conditions of an agreement or franchise, the sale or transfer, or the proposed sale or transfer, of a franchisee’s dealership, or the change or proposed change in the executive management of a franchisee’s dealership shall not make applicable any right of first refusal of the franchiser. [C71, 73, 75, 77, 79, 81, §322A.12] 2002 Acts, ch 1063, §39

Notes of Decisions

Cited in 4 cases, 1984–2004 · leading case: Bob Zimmerman Ford, Inc. v. Midwest Auto. I, L.L.C., 679 N.W.2d 606 (Iowa 2004).

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Bob Zimmerman Ford, Inc. v. Midwest Auto. I, L.L.C., 679 N.W.2d 606 (Iowa 2004). · cites it 22× “Iowa Code § 322A.12. Also deemed important by the parties in the present action are the consequences of a 2002 amendment to the foregoing statute, which changed the words “shall give effect to such a change in the franchise” to “shall give effect to the change in the franchise,”…”

Midwest Auto. III, LLC v. Iowa Dep't of Transp., 646 N.W.2d 417 (Iowa 2002). · cites it 8× “Chapter 322A does, however, allow a franchiser to terminate a franchise agreement upon approval by the DOT.”

Beckman v. Carson, 372 N.W.2d 203 (Iowa 1985). · cites it 16× “Following a bench trial, the trial court first determined that Iowa Code section 322A.12 (1981) did not automatically transfer the GM franchise to Carson Motors, then concluded that Carson Motors was entitled to rescission because plaintiffs had substantially breached the…”

Buckwalter Motors, Inc. v. Gen. Motors Corp., 593 F. Supp. 628 (S.D. Iowa 1984). · cites it 22× “Iowa Code, § 322A.12 (1983). In this action plaintiffs seek an injunction compelling GM to comply with § 322A.”

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