Iowa Code

Iowa Code § 322A.15 (2026)

Guidelines

✓ current as of July 2026

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1. In determining whether good cause has been established for terminating or not continuing a franchise, the department of inspections, appeals, and licensing shall take into consideration the existing circumstances, including, but not limited to:

a. Amount of business transacted by the franchisee.

b. Investment necessarily made and obligations incurred by the franchisee in the performance of the franchisee’s part of the franchise.

c. Permanency of the investment.

d. Whether it is injurious to the public welfare for the business of the franchisee to be disrupted.

e. Whether the franchisee has adequate motor vehicle service facilities, equipment, parts and qualified service personnel to reasonably provide consumer care for the motor vehicles sold at retail by the franchisee and any other motor vehicles of the same line-make.

f. Whether the franchisee refuses to honor warranties of the franchiser to be performed by the franchisee, provided that the franchiser reimburses the franchisee for such warranty work performed by the franchisee.

g. Except as provided in section 322A.11, failure by the franchisee to substantially comply with those requirements of the franchise which are determined by the department of inspections, appeals, and licensing to be reasonable and material.

h. Except as provided in section 322A.11, bad faith by the franchisee in complying with those terms of the franchise which are determined by the department of inspections, appeals, and licensing to be reasonable and material.

2. Good cause does not include a realignment, relocation, or reduction of dealerships. [C71, 73, 75, 77, 79, 81, §322A.15; 81 Acts, ch 22, §22] 97 Acts, ch 108, §40; 2010 Acts, ch 1061, §180; 2023 Acts, ch 19, §1978, 1979\n\nTue Dec 09 22:15:43 2025 Iowa Code 2026, Chapter 322A (27, 0) §322A.16, MOTOR VEHICLE FRANCHISERS 8 \n

Notes of Decisions

Cited in 4 cases, 1997–2002 · 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 32× “§ 322A.15. In addition, the legislature has included a list of circumstances that do not constitute good cause.”

Craig Foster Ford, Inc. v. Iowa Dep't of Transp., 562 N.W.2d 618 (Iowa 1997). · cites it 14× “Iowa Code § 322A.15. During a three-day hearing, Foster developed a strong and favorable record concerning factors (1) through (6).”

Larken, Inc. v. Larken Iowa City Ltd. P'ship, 589 N.W.2d 700 (Iowa 1998). · cites it 6× “2 provides" that a franchise for a motor vehicle dealership may be terminated only for “good cause,” In turn, section 322A.15 provides eight guidelines to be used in determining whether good cause exists.”

Chrysler Corp. v. Lee Janssen Motor Co., 619 N.W.2d 78 (Neb. Ct. App. 2000). “At the agency hearing, the dealer, like Janssen, developed a strong showing and favorable record as to the first six factors of Iowa’s good cause statute, Iowa Code § 322A.15 (1997), which are virtually identical to the first six factors of Nebraska’s § 60-1433.”

— Iowa Code § 322A.15(8) — 1 case

Larken, Inc. v. Larken Iowa City Ltd. P'ship, 589 N.W.2d 700 (Iowa 1998). “2 provides" that a franchise for a motor vehicle dealership may be terminated only for “good cause,” In turn, section 322A.15 provides eight guidelines to be used in determining whether good cause exists.”

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