OEM Dispute Services

Enforcing Your Franchisee Rights

OEM Dispute Resolution Services for Car Dealerships

Disputes with manufacturers (OEMs) can threaten the stability and profitability of your dealership. At Dealership Law Solutions, we specialize in resolving conflicts between car dealerships and their OEM partners. Whether you are dealing with unreasonable performance demands, franchise agreement violations, or disputes over allocation and territory, our legal team provides strategic representation to protect your rights and secure favorable outcomes. With years of experience in dealership law, we understand the complexities of franchise relationships and the power dynamics between manufacturers and dealers. We work tirelessly to level the playing field and ensure your dealership’s success.

OEM disputes arise when a car dealership and its manufacturer disagree on issues related to the franchise agreement, operations, or compliance. These disputes can be complex due to the heavily regulated nature of franchise relationships and the significant influence manufacturers wield over dealerships. Common OEM disputes include:

Franchise Agreement Terminations: Threats to terminate the dealership agreement due to alleged performance issues or violations.

Sales and Performance Standards: Unfair or unrealistic sales goals, customer satisfaction benchmarks, or performance requirements.

Territory and Market Allocation: Disputes over exclusive market areas or unfair allocation of vehicles and incentives.

Inventory and Allocation Issues: Unreasonable demands for inventory purchases or inadequate allocation of in-demand vehicles.

Facility Upgrade Requirements: Pressure to make costly renovations or meet facility image standards without reasonable justification.

What Are OEM Disputes?

  • Your dealership’s franchise agreement governs the relationship with your manufacturer. We:

    • Analyze the agreement to identify the rights and obligations of both parties.

    • Advise on how to enforce your rights under the agreement.

    • Challenge unfair or overreaching provisions in court or through negotiation.

  • Manufacturers often impose sales quotas or customer satisfaction benchmarks that are difficult to meet. We help dealerships:

    • Evaluate whether performance requirements are reasonable and enforceable under state franchise laws.

    • Negotiate with OEMs to adjust quotas or benchmarks based on market conditions.

    • Defend against allegations of non-performance to prevent franchise agreement termination.

  • Disputes over inventory allocation and territory rights can severely impact your dealership’s profitability. We assist with:

    • Challenging unfair vehicle allocations or incentive programs.

    • Protecting your dealership’s rights to exclusive market territories.

    • Negotiating fair distribution of high-demand inventory.

  • Manufacturers often pressure dealerships to invest in costly facility upgrades or renovations. We:

    • Determine whether facility demands are enforceable under franchise laws.

    • Negotiate reasonable timelines or alternatives to costly upgrades.

    • Challenge unreasonable facility requirements that do not provide a fair return on investment.

  • A manufacturer’s attempt to terminate your franchise agreement can jeopardize your business. We defend dealerships against termination by:

    • Analyzing termination notices for compliance with franchise laws.

    • Challenging termination decisions through arbitration, litigation, or state regulatory proceedings.

    • Negotiating reinstatement or settlement agreements to preserve your dealership’s operations.

  • When disputes cannot be resolved through negotiation, we provide aggressive representation in:

    Litigation: Pursuing or defending claims in state and federal courts.

    Arbitration: Representing dealerships in arbitration proceedings mandated by franchise agreements.

Comprehensive OEM Dispute Services

The OEM Dispute Resolution Process

  • Initial Case Assessment

    We begin by thoroughly reviewing the franchise agreement, correspondence, and relevant documentation to understand the scope of the dispute.

  • Strategic Planning

    Our team develops a tailored legal strategy to achieve your goals, whether it’s preserving your franchise rights, securing better allocation terms, or defending against termination.

  • Negotiation

    We negotiate directly with OEM representatives to seek resolutions that protect your dealership’s interests while maintaining a working relationship with the manufacturer.

  • Regulatory Advocacy

    For disputes involving state franchise laws, we advocate on your behalf before state motor vehicle boards or other regulatory agencies.

  • Litigation or Arbitration

    If negotiation fails, we aggressively represent your dealership in court or arbitration to enforce your rights under the franchise agreement and applicable laws.

Common Manufacturer Disputes for Dealerships

    • Unrealistic performance metrics can jeopardize your dealership’s standing. We challenge unfair benchmarks and negotiate reasonable alternatives.

    • Costly and unnecessary facility demands can drain your resources. We defend dealerships against undue pressure to renovate or upgrade.

    • Franchise terminations can devastate your business. We aggressively defend against termination efforts to keep your dealership operational.

    • Unequal inventory distribution or exclusion from incentive programs can hurt your dealership’s profitability. We ensure fair treatment in allocation and distribution.Unequal inventory distribution or exclusion from incentive programs can hurt your dealership’s profitability. We ensure fair treatment in allocation and distribution.

Why Dealership Law Solutions for OEM Disputes?

  1. Manufacturer Relationships Expertise

    • We understand the complexities of dealer-OEM relationships and the power dynamics involved, giving us an edge in negotiating and litigating disputes.

  2. Proven Litigation and Negotiation Skills

    • Our attorneys are skilled in both courtroom advocacy and out-of-court negotiations, ensuring your dealership is protected no matter how the dispute unfolds.

  3. Knowledge of State Franchise Laws

    • We leverage state-specific franchise protections to challenge unfair manufacturer practices and enforce your rights.

  4. Tailored Strategies for Long-Term Success

    • We develop solutions that not only resolve immediate disputes but also preserve your dealership’s future profitability and operational stability.

Contact Us Today

When disputes with your manufacturer threaten your dealership’s operations, you need experienced legal counsel to protect your rights. At Dealership Law Solutions, we specialize in resolving OEM disputes efficiently and effectively, ensuring your dealership remains competitive and compliant. Let us help you navigate the complexities of OEM disputes and safeguard your dealership’s future.

Email: info@dealershiplawsolutions.com
Phone: ‪(330) 203-1109
Phone: ‪(330) 456-3641

Canton Address
213 Market Avenue N., Suite 300
Canton, Ohio 44702

Minerva Address
200 N. Main Street
Minerva, Ohio 446572

Hours
Monday–Friday
9am–5pm EST

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Empower Your Dealership