IC 9-23-5
    Chapter 5. Succession to Franchise by Designated FamilyMembers

IC 9-23-5-1
Application of chapter
    Sec. 1. This chapter does not apply to a franchise if:
        (1) the franchise is granted to a dealer other than a new motorvehicle dealer; and
        (2) the franchise or other written document filed with thefranchisor includes the franchisee's designation of a successorto the franchise who is not the:
            (A) franchisee's spouse;
            (B) child of the franchisee;
            (C) grandchild of the franchisee;
            (D) spouse of a:
                (i) child; or
                (ii) grandchild;
            of the franchisee;
            (E) parent of the franchisee; or
            (F) sibling of the franchisee.
As added by P.L.2-1991, SEC.11. Amended by P.L.118-2001, SEC.5;P.L.1-2002, SEC.43.

IC 9-23-5-2
Prerequisites for succession to franchise
    Sec. 2. A designated family member of a deceased orincapacitated franchisee may succeed the franchisee under theexisting franchise if:
        (1) the manufacturer or distributor determines, subject tosection 3 of this chapter, that the existing franchise should behonored; and
        (2) the designated family member complies with section 4 ofthis chapter.
As added by P.L.2-1991, SEC.11.

IC 9-23-5-3
Good cause refusal to honor franchise
    Sec. 3. A manufacturer or distributor may refuse to honor theexisting franchise for a designated family member only for goodcause.
As added by P.L.2-1991, SEC.11.

IC 9-23-5-4
Qualification of designated family member to succeed franchise
    Sec. 4. To qualify to succeed the franchisee under the existingfranchise, a designated family member must do all of the following:
        (1) Within one hundred twenty (120) days after the franchisee'sdeath or disability, give the manufacturer or distributor writtennotice of the designated family member's intention to succeed

to the franchise.
        (2) Agree to be bound by all terms and conditions of theexisting franchise.
        (3) Meet the criteria generally applied at the time of thefranchisee's death or incapacity by the manufacturer ordistributor in qualifying new motor vehicle dealers asfranchisees.
        (4) If requested by the manufacturer or distributor, supplypromptly personal and financial data that is reasonablynecessary for the manufacturer or distributor to determine if theexisting franchise should be honored.
As added by P.L.2-1991, SEC.11.

IC 9-23-5-5
Notice of refusal to honor franchise; service
    Sec. 5. Within sixty (60) days after receipt of:
        (1) the notice from a designated family member under section4(1) of this chapter; or
        (2) requested personal or financial data under section 4(4) ofthis chapter;
a manufacturer or distributor who determines that good cause existsfor refusing to honor the existing franchise shall serve notice uponthe designated family member of the determination.
As added by P.L.2-1991, SEC.11.

IC 9-23-5-6
Notice of refusal to honor franchise; contents
    Sec. 6. The notice required under section 5 of this chapter muststate the following:
        (1) The specific grounds for the manufacturer's or distributor'sdetermination.
        (2) The date on which the existing franchise will bediscontinued.
As added by P.L.2-1991, SEC.11.

IC 9-23-5-7
Date for discontinuance
    Sec. 7. The date for discontinuance under section 6 of this chaptermust not be earlier than ninety (90) days after the date the notice isserved.
As added by P.L.2-1991, SEC.11.

IC 9-23-5-8
Untimely or noncomplying notice; continuance of franchise
    Sec. 8. If notice of the manufacturer's determination is not servedwithin the time periods specified in section 5 of this chapter and doesnot comply with section 6 of this chapter, the franchise must behonored and is not subject to discontinuance under this chapter.
As added by P.L.2-1991, SEC.11.