New Jersey Statutes

N.J. Stat. § 56:10-6 (2026)

Transfer of franchise; notice; approval; agreement of compliance

✓ current as of May 2026

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It shall be a violation of this act for any franchisee to transfer, assign or sell a franchise or interest therein to another person unless the franchisee shall first notify the franchisor of such intention by written notice setting forth in the notice of intent the prospective transferee's name, address, statement of financial qualification and business experience during the previous 5 years. The franchisor shall within 60 days after receipt of such notice either approve in writing to the franchisee such sale to proposed transferee or by written notice advise the franchisee of the unacceptability of the proposed transferee setting forth material reasons relating to the character, financial ability or business experience of the proposed transferee. If the franchisor does not reply within the specified 60 days, his approval is deemed granted. No such transfer, assignment or sale hereunder shall be valid unless the transferee agrees in writing to comply with all the requirements of the franchise then in effect.

Notes of Decisions

Cited in 7 cases (1 in the last 5 years), 1976–2021 · leading case: Carlo C. Gelardi Corp. v. Miller Brewing Co., 421 F. Supp. 237 (D.N.J. 1976).

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Carlo C. Gelardi Corp. v. Miller Brewing Co., 421 F. Supp. 237 (D.N.J. 1976). · cites it 2× “§ 56:10-6: It shall be a violation of this act for any franchisee to transfer, assign or sell a franchise or interest therein to another person unless the franchisee shall first notify the franchisor of such intention by written notice setting forth in the notice of intent the…”

Nicholas Crivelli Nicholas Crivelli Chevrolet, Inc. Nicholas Crivelli & Orland Crivelli, T/d/b/a Crivelli Enter. v. Gen. Motors Corp., 215 F.3d 386 (3rd Cir. 2000). “” N.J. Stat. Ann. § 56:10-6 (West 1989). GM exercised its contractual right of first approval when a bankrupt GM dealer sought its consent to transfer the dealership.”

Mercedes-Benz of Na v. Dept. of Mv, 455 So. 2d 404 (Fla. 2d DCA 1984). · cites it 2× “In doing so, the court explained: "The court agrees that the language of N.J.Stat. § 56:10-6 is clear, unequivocal, and self-executing if the franchisor does not reply within the specified 60 days his approval is deemed granted.”

Maple Shade Motor Corp. v. Kia Motors Am., Inc., 260 F. App'x 517 (3rd Cir. 2008). · cites it 2× “See N.J. Stat. Ann. § 56:10-6 . In this case, KMA’s rejection of the proposed transfer was proper.”

Gager v. Mobil Oil Corp., 547 F. Supp. 854 (D. Conn. 1982). “” N.J.Stat.Ann. § 56:10-6 (West 1981-1982 Supp.”

Bank United, Na. v. First Chatham Bank (D.N.J. 2019). · cites it 4× “5 5 Plaintiffs alternatively assert that the Assignment Agreement “is illegal in its form pursuant to N.”

Mall Chevrolet, Inc. v. Gen. Motors LLC (D.N.J. 2021). “June 23, 2014) (applying § 56:10-9 to failure to approve transfer claim pursuant to NJFPA § 56:10-6); Mercedes-Benz, U.S.A. LLC v. Coast Auto.”

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