Texas Codes

Tex. Occ. Code § 2301.652 (2026)

Denial Of License Application: Dealership

✓ current as of May 2026

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Sec. 2301.652. DENIAL OF LICENSE APPLICATION: DEALERSHIP. (a) The board may deny an application for a license to establish a dealership if, following a protest, the applicant fails to establish good cause for establishing the dealership. In determining good cause, the board shall consider:

(1) whether the manufacturer or distributor of the same line-make of new motor vehicle is being adequately represented as to sales and service;

(2) whether the protesting franchised dealer representing the same line-make of new motor vehicle is in substantial compliance with the dealer's franchise, to the extent that the franchise is not in conflict with this chapter;

(3) the desirability of a competitive marketplace;

(4) any harm to the protesting franchised dealer;

(5) the public interest;

(6) any harm to the applicant; and

(7) current and reasonably foreseeable projections of economic conditions, financial expectations, and the market for new motor vehicles in the relevant market area.

(b) Except as provided by Subsection (c) and Sections 2301.6521 and 2301.6522, a person has standing under this section to protest an application to establish or relocate a dealership if the person filing the protest is a franchised dealer of the same line-make whose dealership is located:

(1) in the county in which the proposed dealership is to be located; or

(2) within a 15-mile radius of the proposed dealership.

(c) A franchised dealer may not protest an application to relocate a dealership under this section if the proposed relocation site is not:

(1) more than two miles from the site where the dealership is currently located; or

(2) closer to the franchised dealer than the site from which the dealership is being relocated.

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

Amended by:

Acts 2009, 81st Leg., R.S., Ch. 684 (H.B. 2640), Sec. 9, eff. September 1, 2009.

Acts 2011, 82nd Leg., R.S., Ch. 137 (S.B. 529), Sec. 13, eff. September 1, 2011.

Notes of Decisions

Cited in 16 cases (2 in the last 5 years), 2006–2023 · leading case: Austin Chevrolet, Inc. v. Motor Veh. Bd. & Motor Veh. Div. of the Texas Dep't of Transp., 212 S.W.3d 425 (Tex. App. 2006).

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Austin Chevrolet, Inc. v. Motor Veh. Bd. & Motor Veh. Div. of the Texas Dep't of Transp., 212 S.W.3d 425 (Tex. App. 2006). · cites it 4× “Because the Board’s holding is consistent with its previous decisions and its statutory duty to consider “any harm to the protesting franchise dealer,” see Tex. Occ.Code Ann. § 2301.652(4) (emphasis added), we overrule GM/Munday’s third issue.”

DaimlerChrysler Motors Co., LLC v. Manuel, 362 S.W.3d 160 (Tex. App. 2012). “See Tex. Occ.Code Ann. § 2301.652 (West Supp.”

In Re Gen. Motors Corp., 296 S.W.3d 813 (Tex. App. 2009). “Laws 4570 , 5020 (current version at Tex. Occ.Code Ann. § 2301.652(c)(1) (West 2004)).”

Cont'l Imports, Inc., D/B/A Mercedes-Benz of Austin v. Mercedes-Benz USA, LLC Bd. of the Texas Dep't of Motor Vehs., Whitney Brewster, in Her Off. Capacity as Exec. Dir. of the Texas Dep't of Motor Vehs. & Swickard Austin, LLC D/B/aMercedes-Benz of South Austin (Tex. App. 2023). · cites it 7× “See Tex. Occ. Code § 2301.652(a) (“The board may deny an application for a license to establish a dealership if, following a protest, the applicant fails to establish good cause for establishing the dealership.”

Grubbs Nissan Mid-Cities, Ltd. v. Nissan North Am., Inc. Brett Bray, in His Off. Capacity as Dir. of the Motor Veh. Div. of the Texas Dep't of Transp. & Don Davis Nissan Grapevine, Inc. (Tex. App. 2007). · cites it 6× “See Tex. Occ. Code Ann. § 2301.652 (West 2004).”

Grubbs Nissan Mid-Cities, Ltd. v. Nissan North Am., Inc. Brett Bray, in His Off. Capacity as Dir. of the Motor Veh. Div. of the Texas Dep't of Transp. & Don Davis Nissan Grapevine, Inc. (Tex. App. 2007). · cites it 5× “See Tex. Occ. Code Ann. § 2301.652 (West 2004).”

Austin Chevrolet, Inc. D/B/A Munday Chevrolet/Geo & Gen. Motors Corp. v. Motor Veh. Bd. & Motor Veh. Div. of the Texas Dep't of Transp. & Landmark Chevrolet Corp. (Tex. App. 2006). · cites it 4× “Because the Board's holding is consistent with its previous decisions and its statutory duty to consider " any harm to the protesting franchise dealer," see Tex. Occ. Code Ann. § 2301.652 (4) (emphasis added), we overrule GM/Munday's third issue.”

Sweeten Truck Ctr., L.C. v. Volvo Trucks North Am., a Div. of Volvo Grp. of North Am., LLC Texas Dep't of Motor Vehs. Bd. of the Texas Dep't of Motor Vehs. Laura Ryan, in Her Off. Capacity as Chair of the Bd. of the Texas Dep't (Tex. App. 2016). “” See Tex. Occ. Code § 2301.652(b). However, the Board considered Sweeten’s arguments about the possible dealership but concluded that they were mere speculation: Sweeten’s primary argument is that its existing investment will be adversely affected in the future by a new…”

Ahmad Zabihian, New World Car Nissan, Inc. D/B/A World Car Hyundai, & New World Car Imports - San Antonio, Inc. v. Hyundai Motor Am. & Roger Beasley Imports, Inc. D/B/A Roger Beasley Hyundai - New Braunfels (Tex. App. 2021). “See TEX. OCC. CODE ANN. § 2301.652(b) (stating that a franchised dealer may protest to the Texas Department of Motor Vehicles if an application is filed by a dealer “of the same line-make” to establish a dealership in the same county or within a fifteen-mile radius).”

the Allee Corp. D/B/A Rusty Wallis Honda v. Texas Dep't of Motor Vehs., Motor Veh. Div. Rockwall Imports, L.P. D/B/A Honda Cars of Rockwall & Am. Honda Motor Co., Inc. (Tex. App. 2014). “See Tex. Occ. Code § 2301.652 (governing denials of license applications for dealerships).”

in Re Gen. Motors Corp., Chevrolet Motor Div. & Austin Chevrolet, Inc. D/B/A Munday Chevrolet/Geo (Tex. App. 2009). “Laws 4570 , 5020 (current version at Tex. Occ. Code Ann. § 2301.652 (c)(1) (West 2004)).”

Show all 16 citing cases →

— Tex. Occ. Code § 2301.652(4) — 1 case

Austin Chevrolet, Inc. v. Motor Veh. Bd. & Motor Veh. Div. of the Texas Dep't of Transp., 212 S.W.3d 425 (Tex. App. 2006). “Because the Board’s holding is consistent with its previous decisions and its statutory duty to consider “any harm to the protesting franchise dealer,” see Tex. Occ.Code Ann. § 2301.652(4) (emphasis added), we overrule GM/Munday’s third issue.”

— Tex. Occ. Code § 2301.652(a) — 2 cases

Cont'l Imports, Inc., D/B/A Mercedes-Benz of Austin v. Mercedes-Benz USA, LLC Bd. of the Texas Dep't of Motor Vehs., Whitney Brewster, in Her Off. Capacity as Exec. Dir. of the Texas Dep't of Motor Vehs. & Swickard Austin, LLC D/B/aMercedes-Benz of South Austin (Tex. App. 2023). “See Tex. Occ. Code § 2301.652(a) (“The board may deny an application for a license to establish a dealership if, following a protest, the applicant fails to establish good cause for establishing the dealership.”

— Tex. Occ. Code § 2301.652(a)(5) — 1 case

Cont'l Imports, Inc., D/B/A Mercedes-Benz of Austin v. Mercedes-Benz USA, LLC Bd. of the Texas Dep't of Motor Vehs., Whitney Brewster, in Her Off. Capacity as Exec. Dir. of the Texas Dep't of Motor Vehs. & Swickard Austin, LLC D/B/aMercedes-Benz of South Austin (Tex. App. 2023). “See Tex. Occ. Code § 2301.652(a) (“The board may deny an application for a license to establish a dealership if, following a protest, the applicant fails to establish good cause for establishing the dealership.”

— Tex. Occ. Code § 2301.652(a)(6) — 1 case

Cont'l Imports, Inc., D/B/A Mercedes-Benz of Austin v. Mercedes-Benz USA, LLC Bd. of the Texas Dep't of Motor Vehs., Whitney Brewster, in Her Off. Capacity as Exec. Dir. of the Texas Dep't of Motor Vehs. & Swickard Austin, LLC D/B/aMercedes-Benz of South Austin (Tex. App. 2023). “See Tex. Occ. Code § 2301.652(a) (“The board may deny an application for a license to establish a dealership if, following a protest, the applicant fails to establish good cause for establishing the dealership.”

— Tex. Occ. Code § 2301.652(a)(7) — 1 case

Cont'l Imports, Inc., D/B/A Mercedes-Benz of Austin v. Mercedes-Benz USA, LLC Bd. of the Texas Dep't of Motor Vehs., Whitney Brewster, in Her Off. Capacity as Exec. Dir. of the Texas Dep't of Motor Vehs. & Swickard Austin, LLC D/B/aMercedes-Benz of South Austin (Tex. App. 2023). “See Tex. Occ. Code § 2301.652(a) (“The board may deny an application for a license to establish a dealership if, following a protest, the applicant fails to establish good cause for establishing the dealership.”

— Tex. Occ. Code § 2301.652(b) — 3 cases

Cont'l Imports, Inc., D/B/A Mercedes-Benz of Austin v. Mercedes-Benz USA, LLC Bd. of the Texas Dep't of Motor Vehs., Whitney Brewster, in Her Off. Capacity as Exec. Dir. of the Texas Dep't of Motor Vehs. & Swickard Austin, LLC D/B/aMercedes-Benz of South Austin (Tex. App. 2023). “See Tex. Occ. Code § 2301.652(a) (“The board may deny an application for a license to establish a dealership if, following a protest, the applicant fails to establish good cause for establishing the dealership.”

— Tex. Occ. Code § 2301.652(b)(2) — 1 case

— Tex. Occ. Code § 2301.652(c)(1) — 1 case

In Re Gen. Motors Corp., 296 S.W.3d 813 (Tex. App. 2009). “Laws 4570 , 5020 (current version at Tex. Occ.Code Ann. § 2301.652(c)(1) (West 2004)).”

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