Compensation agreements between franchisors and franchiseesengaged in sale of motorcycles and ATVs.
407.1047. 1. The provisions of this section shall apply to franchisorsand franchisees engaged in the sale of motorcycles and all-terrain vehicles.
2. Each franchisor shall specify in writing to each of its franchiseesin this state the franchisee's obligations for preparation, delivery, andwarranty service on its products. The franchisor shall compensate thefranchisee for warranty service required of the franchisee by the franchisor.
3. The franchisor shall provide the franchisee with the schedule ofcompensation to be paid to the franchisee for parts, work, and service, andthe time allowance for the performance of the work and service. The scheduleof compensation shall include reasonable compensation for diagnostic work, aswell as repair service and labor. Time allowances for the diagnosis andperformance of warranty work and service shall be reasonable and adequate forthe work performed. In the determination of what constitutes reasonablecompensation under this section, the principal factor to be givenconsideration shall be the prevailing wage rates being paid by the franchiseesin the community in which the franchisee is doing business, and in no eventshall the compensation of a franchisee for warranty labor be less than therates charged by the franchisee for like service to retail customers fornonwarranty service and repairs, provided that such rates are reasonable.
4. A franchisor shall not:
(1) Fail to perform any warranty obligation;
(2) Fail to include in written notices of franchisor recalls to ownersof new motorcycles and all-terrain vehicles the expected date by whichnecessary parts and equipment will be available to franchisees for thecorrection of the defects; or
(3) Fail to compensate any of the franchisees in this state for repairseffected by the recall.
5. All claims made by a franchisee pursuant to this section for laborand parts shall be paid within thirty days after their approval. All claimsshall be either approved or disapproved by the franchisor within thirty daysafter their receipt on a proper form generally used by the franchisor andcontaining the usually required information therein. Any claims notspecifically disapproved in writing within thirty days after the receipt ofthe form shall be considered to be approved and payment shall be made withinthirty days. A claim that has been approved and paid may not be charged backto the franchisee unless the franchisor can show that the claim wasfraudulent, false, or unsubstantiated, except that a charge back for false orfraudulent claims shall not be made more than two years after payment, and acharge back for unsubstantiated claims shall not be made more than fifteenmonths after payment. A franchisee shall maintain all records of warrantyrepairs, including the related time records of its employees, for at least twoyears following payment of any warranty claim.
6. A franchisor shall compensate the franchisee for franchisor-sponsoredsales or service promotion events, programs, or activities in accordance withestablished guidelines for such events, programs, or activities.
7. All claims made by a franchisee pursuant to subsection 5 of thissection for promotion events, programs, or activities shall be paid withintwenty-five days after their approval or program close, whichever comes later. All claims except those of the type set forth in subdivisions* (1) and (2) ofthis subsection shall be either approved or disapproved by the franchisorwithin thirty days after their receipt on a proper form generally used by thefranchisor and containing the usually required information therein. Any claimnot specifically disapproved in writing within thirty days after the receiptof this form shall be considered to be approved, and payment shall be madewithin thirty days. The franchisor has the right to charge back any claim fortwelve months after the later of either the close of the promotion event,program, or activity, or the date of the payment. The provisions of thissubsection shall not apply to:
(1) Claims related to holdbacks, retail sales bonuses, or similarprograms in which the franchisor accrues a certain portion of the vehiclesales price for the franchisee and then at a later point in time pays thatamount to the franchisee, in which event the franchisor shall compensate afranchisee no later than forty-five days following the payment date that thefranchisor specified in the program;
(2) Claims related to franchisor's use of a "balance forward account" tomake reimbursement, in which event the franchisor shall compensate afranchisee no later than seventy-five days following the date that thefranchisee properly registered the manufacturer's limited warranty for thevehicle.
Compensation agreements between franchisors and franchiseesengaged in sale of motorcycles and ATVs.
407.1047. 1. The provisions of this section shall apply to franchisorsand franchisees engaged in the sale of motorcycles and all-terrain vehicles.
2. Each franchisor shall specify in writing to each of its franchiseesin this state the franchisee's obligations for preparation, delivery, andwarranty service on its products. The franchisor shall compensate thefranchisee for warranty service required of the franchisee by the franchisor.
3. The franchisor shall provide the franchisee with the schedule ofcompensation to be paid to the franchisee for parts, work, and service, andthe time allowance for the performance of the work and service. The scheduleof compensation shall include reasonable compensation for diagnostic work, aswell as repair service and labor. Time allowances for the diagnosis andperformance of warranty work and service shall be reasonable and adequate forthe work performed. In the determination of what constitutes reasonablecompensation under this section, the principal factor to be givenconsideration shall be the prevailing wage rates being paid by the franchiseesin the community in which the franchisee is doing business, and in no eventshall the compensation of a franchisee for warranty labor be less than therates charged by the franchisee for like service to retail customers fornonwarranty service and repairs, provided that such rates are reasonable.
4. A franchisor shall not:
(1) Fail to perform any warranty obligation;
(2) Fail to include in written notices of franchisor recalls to ownersof new motorcycles and all-terrain vehicles the expected date by whichnecessary parts and equipment will be available to franchisees for thecorrection of the defects; or
(3) Fail to compensate any of the franchisees in this state for repairseffected by the recall.
5. All claims made by a franchisee pursuant to this section for laborand parts shall be paid within thirty days after their approval. All claimsshall be either approved or disapproved by the franchisor within thirty daysafter their receipt on a proper form generally used by the franchisor andcontaining the usually required information therein. Any claims notspecifically disapproved in writing within thirty days after the receipt ofthe form shall be considered to be approved and payment shall be made withinthirty days. A claim that has been approved and paid may not be charged backto the franchisee unless the franchisor can show that the claim wasfraudulent, false, or unsubstantiated, except that a charge back for false orfraudulent claims shall not be made more than two years after payment, and acharge back for unsubstantiated claims shall not be made more than fifteenmonths after payment. A franchisee shall maintain all records of warrantyrepairs, including the related time records of its employees, for at least twoyears following payment of any warranty claim.
6. A franchisor shall compensate the franchisee for franchisor-sponsoredsales or service promotion events, programs, or activities in accordance withestablished guidelines for such events, programs, or activities.
7. All claims made by a franchisee pursuant to subsection 5 of thissection for promotion events, programs, or activities shall be paid withintwenty-five days after their approval or program close, whichever comes later. All claims except those of the type set forth in subdivisions* (1) and (2) ofthis subsection shall be either approved or disapproved by the franchisorwithin thirty days after their receipt on a proper form generally used by thefranchisor and containing the usually required information therein. Any claimnot specifically disapproved in writing within thirty days after the receiptof this form shall be considered to be approved, and payment shall be madewithin thirty days. The franchisor has the right to charge back any claim fortwelve months after the later of either the close of the promotion event,program, or activity, or the date of the payment. The provisions of thissubsection shall not apply to:
(1) Claims related to holdbacks, retail sales bonuses, or similarprograms in which the franchisor accrues a certain portion of the vehiclesales price for the franchisee and then at a later point in time pays thatamount to the franchisee, in which event the franchisor shall compensate afranchisee no later than forty-five days following the payment date that thefranchisor specified in the program;
(2) Claims related to franchisor's use of a "balance forward account" tomake reimbursement, in which event the franchisor shall compensate afranchisee no later than seventy-five days following the date that thefranchisee properly registered the manufacturer's limited warranty for thevehicle.
Compensation agreements between franchisors and franchiseesengaged in sale of motorcycles and ATVs.
407.1047. 1. The provisions of this section shall apply to franchisorsand franchisees engaged in the sale of motorcycles and all-terrain vehicles.
2. Each franchisor shall specify in writing to each of its franchiseesin this state the franchisee's obligations for preparation, delivery, andwarranty service on its products. The franchisor shall compensate thefranchisee for warranty service required of the franchisee by the franchisor.
3. The franchisor shall provide the franchisee with the schedule ofcompensation to be paid to the franchisee for parts, work, and service, andthe time allowance for the performance of the work and service. The scheduleof compensation shall include reasonable compensation for diagnostic work, aswell as repair service and labor. Time allowances for the diagnosis andperformance of warranty work and service shall be reasonable and adequate forthe work performed. In the determination of what constitutes reasonablecompensation under this section, the principal factor to be givenconsideration shall be the prevailing wage rates being paid by the franchiseesin the community in which the franchisee is doing business, and in no eventshall the compensation of a franchisee for warranty labor be less than therates charged by the franchisee for like service to retail customers fornonwarranty service and repairs, provided that such rates are reasonable.
4. A franchisor shall not:
(1) Fail to perform any warranty obligation;
(2) Fail to include in written notices of franchisor recalls to ownersof new motorcycles and all-terrain vehicles the expected date by whichnecessary parts and equipment will be available to franchisees for thecorrection of the defects; or
(3) Fail to compensate any of the franchisees in this state for repairseffected by the recall.
5. All claims made by a franchisee pursuant to this section for laborand parts shall be paid within thirty days after their approval. All claimsshall be either approved or disapproved by the franchisor within thirty daysafter their receipt on a proper form generally used by the franchisor andcontaining the usually required information therein. Any claims notspecifically disapproved in writing within thirty days after the receipt ofthe form shall be considered to be approved and payment shall be made withinthirty days. A claim that has been approved and paid may not be charged backto the franchisee unless the franchisor can show that the claim wasfraudulent, false, or unsubstantiated, except that a charge back for false orfraudulent claims shall not be made more than two years after payment, and acharge back for unsubstantiated claims shall not be made more than fifteenmonths after payment. A franchisee shall maintain all records of warrantyrepairs, including the related time records of its employees, for at least twoyears following payment of any warranty claim.
6. A franchisor shall compensate the franchisee for franchisor-sponsoredsales or service promotion events, programs, or activities in accordance withestablished guidelines for such events, programs, or activities.
7. All claims made by a franchisee pursuant to subsection 5 of thissection for promotion events, programs, or activities shall be paid withintwenty-five days after their approval or program close, whichever comes later. All claims except those of the type set forth in subdivisions* (1) and (2) ofthis subsection shall be either approved or disapproved by the franchisorwithin thirty days after their receipt on a proper form generally used by thefranchisor and containing the usually required information therein. Any claimnot specifically disapproved in writing within thirty days after the receiptof this form shall be considered to be approved, and payment shall be madewithin thirty days. The franchisor has the right to charge back any claim fortwelve months after the later of either the close of the promotion event,program, or activity, or the date of the payment. The provisions of thissubsection shall not apply to:
(1) Claims related to holdbacks, retail sales bonuses, or similarprograms in which the franchisor accrues a certain portion of the vehiclesales price for the franchisee and then at a later point in time pays thatamount to the franchisee, in which event the franchisor shall compensate afranchisee no later than forty-five days following the payment date that thefranchisor specified in the program;
(2) Claims related to franchisor's use of a "balance forward account" tomake reimbursement, in which event the franchisor shall compensate afranchisee no later than seventy-five days following the date that thefranchisee properly registered the manufacturer's limited warranty for thevehicle.
