GM will require dealers to provide a disclosure form to certain customers, and failure to do so could lead to termination of the dealer's franchise agreement. All franchisees should be prepared for such an action by a franchisor.
Learn more about the new GM mandate and our Franchise Dispute Expense Insurance below.
Failure to use the disclosure form could lead to a $500 fine per-incident and prevent a dealer's eligibility for GM incentive programs. Moreover, non-compliance could prevent a dealer from buying another GM store or even lead to termination of the dealer's franchise agreement.
Dealership lawyers and associations are pushing back against the new disclosure process and penalties, claiming that GM may be violating its own franchise agreement. But how can a franchisee prepare in advance for this type of move by its franchisor?
Our Franchise Dispute Expense Insurance helps franchisees plan for these issues before they occur. Franchise Dispute Expense Insurance covers the legal costs and other expenses in proceedings related to the loss or adverse amendment of a franchise agreement.
Contact us today to learn more about Franchise Dispute Expense Insurance and how it can protect your franchise.