A new dealership protection law in Florida prohibits manufacturers from telling dealers to renovate facilities more than once every 10 years. It also prevents automakers from enforcing certain sales standards for their franchised dealerships in the state.
The new law creates the state's first finite period for dealers to have to comply with a facilities program, and crafts new provisions for how incentives can be allocated to dealers during the 10 years after a manufacturer-ordered renovation. The bill, signed into law Monday by Florida Gov. Rick Scott, passed unanimously in the Senate, and was approved 104-12 in the House.
"We saw it as a pro-dealer piece of legislation. So we looked at the language and we endorsed it," said Ted Smith, president of the Florida Automobile Dealers Association.
The law's core provision says that if a dealership has completed a facilities renovation and complies with the franchise's standards, that dealership cannot be required to undergo another renovation within 10 years.