Digital Dealer - June 2018 - 18
By Richard Sox, Esq.
Partner,
Bass Sox Mercer
// Ownership
A Little
Preventive
Maintenance
Goes a Long Way
in Protecting
Your Franchise
Investment
In the midst of the
constant threats to
dealers' franchise
investment, including new
OEM facility requirements, OEM vehicle
subscription programs,
OEM warranty and
incentive audits and
chargebacks, attorneys
general and FTC
advertising penalties,
consumer lawsuits, etc., it
is easy to lose sight of an
area of the manufacturer-dealer relationship that
can have a huge impact
on your franchise
investment - the various
agreements and paperwork that the manufacturer sends to the dealership. Despite the
common understanding
that the manufacturer
18
JUNE 2018
won't negotiate the terms
of these agreements, this
is an area ripe for
preventive maintenance.
There are many agreements and "program"
the manufacturer will
generally not change the
"standard provisions"
within the agreement,
there is typically a number of addenda attached
DEALERS WHO
ACCEPT THOSE
REQUIREMENTS AT
FACE VALUE WILL FIND
IT VERY DIFFICULT TO
AVOID THEM IN THE
FUTURE."
details/manuals sent to
dealerships on a periodic
basis that dealers simply
accept at face value.
The most impactful of
these is the Sales and
Service Agreement itself.
Although it is true that
D I G I TA L D E A L E R . C O M
to those standard provisions, which are specific
to the dealership. In many
cases, these addenda include sales performance
or facility requirements
that go well beyond those
contained in the standard
provisions.
These more specific
requirements are in fact
negotiable, and dealers who accept those
requirements at face
value will find it very
difficult to avoid them in
the future even with the
assistance of state franchise protections. The
leverage a dealer has in
negotiating the terms of
the Sales and Service
Agreement addenda is
that the Sales and Service Agreement does not
expire until a new Sales
and Service Agreement
is agreed upon notwithstanding the expiration
date contained in the
agreement. Dealers receiving proposed sales,
facility or other performance requirements
should not agree to any
term with which they do
not expect to be able to
comply. Instead, dealers
should negotiate those
terms down to a performance level that can
practically be met under
the dealership's specific
market circumstances.
If the negotiations
are unsuccessful, the
dealer has the option of
continuing to operate
under the terms of the
prior Sales and Service
Agreement. However, if
the objectionable terms
are ultimately agreed to
those terms are much
more likely to be enforced by an arbitrator,
hearing officer or judge.
This is true even if the
http://www.DIGITALDEALER.COM
Table of Contents for the Digital Edition of Digital Dealer - June 2018
Digital Dealer - June 2018
Contents
Letter from the Show Director
The Power of Bear’s a “Little Bit Extra”
Sustained Legacy for Greatness - So Many Layers of Benefits to Be Derived
Innovate & Adapt
Subscribe & Drive
A Little Preventive Maintenance Goes a Long Way in Protecting Your Franchise Investment
A Metric That Merits More Attention— Your Used/New Sales Ratio
The Law of Attraction
How to Tailor the Brand Experience for the Decision Maker
The Power of Internal Marketing!
Andrew Walser Walser Automotive Group
The Perfect Dealership: Mastering the Basics
Wanna Hurt or Maim Someone? Use Their Vehicle!
Fixed Ops BFF
Broken Links Lead to Broken Relationships
5 Ways to Immediately Improve Your Social Media Strategy
Don’t Be Shy – The Tough Questions You Should Be Asking Vendors
4 Ways F&I Managers Can Win Over the Sales Team
The Consultative Approach to Selling
Digital Dealer - June 2018 - CT1
Digital Dealer - June 2018 - CT2
Digital Dealer - June 2018 - Digital Dealer - June 2018
Digital Dealer - June 2018 - Cover2
Digital Dealer - June 2018 - 1
Digital Dealer - June 2018 - Contents
Digital Dealer - June 2018 - 3
Digital Dealer - June 2018 - Letter from the Show Director
Digital Dealer - June 2018 - 5
Digital Dealer - June 2018 - The Power of Bear’s a “Little Bit Extra”
Digital Dealer - June 2018 - 7
Digital Dealer - June 2018 - Sustained Legacy for Greatness - So Many Layers of Benefits to Be Derived
Digital Dealer - June 2018 - 9
Digital Dealer - June 2018 - 10
Digital Dealer - June 2018 - 11
Digital Dealer - June 2018 - Innovate & Adapt
Digital Dealer - June 2018 - 13
Digital Dealer - June 2018 - 14
Digital Dealer - June 2018 - 15
Digital Dealer - June 2018 - Subscribe & Drive
Digital Dealer - June 2018 - 17
Digital Dealer - June 2018 - A Little Preventive Maintenance Goes a Long Way in Protecting Your Franchise Investment
Digital Dealer - June 2018 - 19
Digital Dealer - June 2018 - A Metric That Merits More Attention— Your Used/New Sales Ratio
Digital Dealer - June 2018 - 21
Digital Dealer - June 2018 - The Law of Attraction
Digital Dealer - June 2018 - 23
Digital Dealer - June 2018 - How to Tailor the Brand Experience for the Decision Maker
Digital Dealer - June 2018 - 25
Digital Dealer - June 2018 - The Power of Internal Marketing!
Digital Dealer - June 2018 - 27
Digital Dealer - June 2018 - Andrew Walser Walser Automotive Group
Digital Dealer - June 2018 - 29
Digital Dealer - June 2018 - 30
Digital Dealer - June 2018 - 31
Digital Dealer - June 2018 - 32
Digital Dealer - June 2018 - 33
Digital Dealer - June 2018 - The Perfect Dealership: Mastering the Basics
Digital Dealer - June 2018 - 35
Digital Dealer - June 2018 - Wanna Hurt or Maim Someone? Use Their Vehicle!
Digital Dealer - June 2018 - 37
Digital Dealer - June 2018 - Fixed Ops BFF
Digital Dealer - June 2018 - 39
Digital Dealer - June 2018 - Broken Links Lead to Broken Relationships
Digital Dealer - June 2018 - 41
Digital Dealer - June 2018 - 5 Ways to Immediately Improve Your Social Media Strategy
Digital Dealer - June 2018 - 43
Digital Dealer - June 2018 - Don’t Be Shy – The Tough Questions You Should Be Asking Vendors
Digital Dealer - June 2018 - 45
Digital Dealer - June 2018 - 4 Ways F&I Managers Can Win Over the Sales Team
Digital Dealer - June 2018 - 47
Digital Dealer - June 2018 - The Consultative Approach to Selling
Digital Dealer - June 2018 - Cover3
Digital Dealer - June 2018 - Cover4
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