THE FRANCHISE SYSTEM

A quote from Bill Powell

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Bill Powell, vice president of North American industry-dealer affairs, General Motors
 
September 25, 2006 - 12:01 am ET
(The franchise agreement) provides a level of protection and insurance to the dealer, and puts down in writing some agreements about what the brand stands for and what the expectations are. It's a personal service agreement. It makes the rules of engagement workable.

The franchise system has worked pretty well. Pretty much every manufacturer around the globe uses the franchise system. It would be a major change if we went away from that. There have been attempts to do that, but that has not come to fruition, and I don't think it will.

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