Tex. Codes » Occupations Code · TITLE 14. REGULATION OF MOTOR VEHICLES AND TRANSPORTATION · SUBTITLE A. REGULATIONS RELATED TO MOTOR VEHICLES · CHAPTER 2301. SALE OR LEASE OF MOTOR VEHICLES
Texas Codes

Tex. Occ. Code § 2301.455 (2026)

Determination Of Good Cause For Termination, Discontinuance, Modification, Or Replacement

✓ current as of May 2026
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Sec. 2301.455. DETERMINATION OF GOOD CAUSE FOR TERMINATION, DISCONTINUANCE, MODIFICATION, OR REPLACEMENT. (a) Notwithstanding the terms of any franchise, in determining whether good cause has been established under Section 2301.453 or 2301.454, the board shall consider all existing circumstances, including:

(1) the dealer's sales in relation to the sales in the market;

(2) the dealer's investment and obligations;

(3) injury or benefit to the public;

(4) the adequacy of the dealer's service facilities, equipment, parts, and personnel in relation to those of other dealers of new motor vehicles of the same line-make;

(5) whether warranties are being honored by the dealer;

(6) the parties' compliance with the franchise, except to the extent that the franchise conflicts with this chapter; and

(7) the enforceability of the franchise from a public policy standpoint, including issues of the reasonableness of the franchise's terms, oppression, adhesion, and the parties' relative bargaining power.

(b) The desire of a manufacturer, distributor, or representative for market penetration does not by itself constitute good cause.

Added by Acts 2001, 77th Leg., ch. 1421, Sec. 5, eff. June 1, 2003.

Notes of Decisions
Cited in 11 cases (1 in the last 5 years), 2005–2025 · leading case: Lee C. Ritchie v. Ann Caldwell Rupe, as Tr. for the Dallas Gordon Rupe, III 1995 Fam. Trust, 443 S.W.3d 856 (Tex. 2014).
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Lee C. Ritchie v. Ann Caldwell Rupe, as Tr. for the Dallas Gordon Rupe, III 1995 Fam. Trust, 443 S.W.3d 856 (Tex. 2014). “052(4) (public officers may be removed for "oppression in office”); Tex. Occ.Code § 2301.455 (auto dealer’s franchise agreement may be terminated considering, inter alia, “oppression, adhesion, and the parties’ relative bargaining power”); Tex.”
Gen. Motors Corp. v. Bray, 243 S.W.3d 678 (Tex. App. 2008). “” Tex. Occ.Code Ann. § 2301.455 (West 2004).”
Freightliner Corp. v. Motor Veh. Bd. of Texas Dep't of Transp., 255 S.W.3d 356 (Tex. App. 2008). “See Tex. Occ.Code Ann. § 2301.455 (West 2004) (non-exclusive list of circumstances to consider).”
Nissan North Am., Inc. v. Texas Dep't of Motor Vehs. (Tex. App. 2019). · cites it 6× “See TEX. OCC. CODE ANN. § 2301.455(a). On the contrary, Texas cases considering “all existing circumstances” support the Board’s interpretation of the phrase in this case.”
Subaru of Am., Inc. v. Bd. of the Texas Dep't of Motor Vehs.; Daniel Avitia, in His Off. Capacity as Exec. Dir. of the Texas Dep't of Motor Vehs.; & McAllen Jeep, Inc. D/B/A Bert Ogden Subaru (Tex. App. 2025). · cites it 2× “Injury or benefit to the public We begin by considering Subaru’s issues concerning the Board’s conclusion that the third factor, the “injury or benefit to the public,” Tex. Occ. Code § 2301.455(a)(3), “weighs strongly against termination.”
Buddy Gregg Motor Homes, Inc.//Cross-Appellant, Liberty Coach, Inc. v. Motor Veh. Bd. of the Texas Dep't of Transp. & Liberty Coach, Inc.//Cross-Appellee, Buddy Gregg Motor Homes, Inc. (Tex. App. 2005). “See Tex. Occ. Code Ann. § 2301.455 (b) (West 2004).”
Buddy Gregg Motor Homes, Inc.//Cross-Appellant, Liberty Coach, Inc. v. Motor Veh. Bd. of the Texas Dep't of Transp. & Liberty Coach, Inc.//Cross-Appellee, Buddy Gregg Motor Homes, Inc. (Tex. App. 2005). “See Tex. Occ. Code Ann. § 2301.455 (b) (West 2004).”
Gen. Motors Corp. v. Brett Bray, in His Off. Capacity as Dir. of the Motor Veh. Div. of the Texas Dep't of Transp. Charles E. Elliott & Eaton Motor Co., Inc. (Tex. App. 2007). “" Tex. Occ. Code Ann. § 2301.455 (West 2004).”
Gen. Motors Corp. v. Brett Bray, in His Off. Capacity as Dir. of the Motor Veh. Div. of the Texas Dep't of Transp. Charles E. Elliott & Eaton Motor Co., Inc. (Tex. App. 2007). “” Tex. Occ. Code Ann. § 2301.455 (West 2004).”
Freightliner Corp. & Ford Motor Co. v. Motor Veh. Bd. of the Texas Dep't of Transp. & Metro Ford Truck Sales, Inc. (Tex. App. 2008). “See Tex. Occ. Code Ann. § 2301.455 (West 2004) (non-exclusive list of circumstances to consider).”
Freightliner Corp. & Ford Motor Co. v. Motor Veh. Bd. of the Texas Dep't of Transp. & Metro Ford Truck Sales, Inc. (Tex. App. 2008). “See Tex. Occ. Code Ann. § 2301.455 (West 2004) (non-exclusive list of circumstances to consider).”
— Tex. Occ. Code § 2301.455(a) — 1 case
Nissan North Am., Inc. v. Texas Dep't of Motor Vehs. (Tex. App. 2019). “See TEX. OCC. CODE ANN. § 2301.455(a). On the contrary, Texas cases considering “all existing circumstances” support the Board’s interpretation of the phrase in this case.”
— Tex. Occ. Code § 2301.455(a)(1) — 1 case
Nissan North Am., Inc. v. Texas Dep't of Motor Vehs. (Tex. App. 2019). “See TEX. OCC. CODE ANN. § 2301.455(a). On the contrary, Texas cases considering “all existing circumstances” support the Board’s interpretation of the phrase in this case.”
— Tex. Occ. Code § 2301.455(a)(3) — 1 case
Subaru of Am., Inc. v. Bd. of the Texas Dep't of Motor Vehs.; Daniel Avitia, in His Off. Capacity as Exec. Dir. of the Texas Dep't of Motor Vehs.; & McAllen Jeep, Inc. D/B/A Bert Ogden Subaru (Tex. App. 2025). “Injury or benefit to the public We begin by considering Subaru’s issues concerning the Board’s conclusion that the third factor, the “injury or benefit to the public,” Tex. Occ. Code § 2301.455(a)(3), “weighs strongly against termination.”
— Tex. Occ. Code § 2301.455(a)(4) — 1 case
Subaru of Am., Inc. v. Bd. of the Texas Dep't of Motor Vehs.; Daniel Avitia, in His Off. Capacity as Exec. Dir. of the Texas Dep't of Motor Vehs.; & McAllen Jeep, Inc. D/B/A Bert Ogden Subaru (Tex. App. 2025). “Injury or benefit to the public We begin by considering Subaru’s issues concerning the Board’s conclusion that the third factor, the “injury or benefit to the public,” Tex. Occ. Code § 2301.455(a)(3), “weighs strongly against termination.”
— Tex. Occ. Code § 2301.455(a)(6) — 1 case
Nissan North Am., Inc. v. Texas Dep't of Motor Vehs. (Tex. App. 2019). “See TEX. OCC. CODE ANN. § 2301.455(a). On the contrary, Texas cases considering “all existing circumstances” support the Board’s interpretation of the phrase in this case.”
— Tex. Occ. Code § 2301.455(b) — 1 case
Nissan North Am., Inc. v. Texas Dep't of Motor Vehs. (Tex. App. 2019). “See TEX. OCC. CODE ANN. § 2301.455(a). On the contrary, Texas cases considering “all existing circumstances” support the Board’s interpretation of the phrase in this case.”
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