Tex. Occ. Code Section 2301.455
Determination of Good Cause for Termination, Discontinuance, Modification, or Replacement

(a)

Notwithstanding the terms of any franchise, in determining whether good cause has been established under Section 2301.453 (Termination or Discontinuance of Franchise) or 2301.454 (Modification or Replacement of Franchise), the board shall consider all existing circumstances, including:

(1)

the dealer’s sales in relation to the sales in the market;

(2)

the dealer’s investment and obligations;

(3)

injury or benefit to the public;

(4)

the adequacy of the dealer’s service facilities, equipment, parts, and personnel in relation to those of other dealers of new motor vehicles of the same line-make;

(5)

whether warranties are being honored by the dealer;

(6)

the parties’ compliance with the franchise, except to the extent that the franchise conflicts with this chapter; and

(7)

the enforceability of the franchise from a public policy standpoint, including issues of the reasonableness of the franchise’s terms, oppression, adhesion, and the parties’ relative bargaining power.

(b)

The desire of a manufacturer, distributor, or representative for market penetration does not by itself constitute good cause.
Added by Acts 2001, 77th Leg., ch. 1421, Sec. 5, eff. June 1, 2003.

Source: Section 2301.455 — Determination of Good Cause for Termination, Discontinuance, Modification, or Replacement, https://statutes.­capitol.­texas.­gov/Docs/OC/htm/OC.­2301.­htm#2301.­455 (accessed Jun. 5, 2024).

2301.001
Construction 2301.002
Definitions 2301.003
Effect on Agreements 2301.004
Chapter Exclusive 2301.005
Title Changes 2301.006
Brokers Prohibited 2301.007
Towing Vehicle by License Holder 2301.0045
Nonapplicability of Chapter to Assembled Vehicles and Hobbyist 2301.103
Personnel 2301.104
Hearings Examiners 2301.151
General Jurisdiction of Board 2301.152
General Duties of Board 2301.153
General Powers of Board 2301.154
Delegation of Powers 2301.155
Rules 2301.156
Deposit of Revenue 2301.160
Tolling of Time Limit During Mediation 2301.201
Public Interest Information 2301.202
Complaints 2301.203
Complaint Investigation and Disposition 2301.204
Complaint Concerning Vehicle Defect 2301.205
Notice of Complaint Procedure 2301.251
License Required: Generally 2301.252
License Required: Sale of New Motor Vehicles 2301.253
License Required: Vehicle Lease Facilitators 2301.254
License Not Required for Certain Vehicle Lessors or Vehicle Lease Facilitators 2301.255
Nonfranchised Dealers 2301.256
Review of New Applications 2301.257
Application for Dealer’s License 2301.258
General Requirements for Application for Manufacturer’s, Distributor’s, or Converter’s License 2301.259
Application for Manufacturer’s License 2301.260
Application for Distributor’s License 2301.261
Application for Vehicle Lessor’s License 2301.262
Application for Vehicle Lease Facilitator License 2301.263
License Issued Subject to New Law and Rules 2301.264
License Fees 2301.265
Service of Process on License Holder 2301.266
Duplicate License 2301.301
License Term and Renewal 2301.302
Notice of License Expiration 2301.303
Renewal of Dealer’s License 2301.304
Procedure for Renewal of Certain Licenses 2301.351
General Prohibition 2301.352
Prohibition: Requiring Additional Equipment After Retail Sale 2301.353
Prohibition: Performance of Obligation Under Agreement with Manufacturer 2301.354
Use of Signs 2301.355
Use of Multiple Locations 2301.356
Notice of Certain Proposed Changes 2301.357
Prohibited Fee 2301.358
Vehicle Show or Exhibition 2301.359
Transfer of Ownership by Dealer 2301.360
Review by Board Following Denial of Transfer 2301.361
Independent Mobility Motor Vehicle Dealer 2301.362
Offsite Sales 2301.363
Required Notice 2301.401
Warranty, Preparation, and Delivery Requirements 2301.402
Rate of Compensation 2301.403
Adjustment of Warranty Labor Rate 2301.404
Time for Payment 2301.405
Charge Back to Dealer 2301.406
Prohibited Requirements for Payment 2301.451
Prohibition: Items Not Ordered 2301.452
Delivery of Motor Vehicle or Part 2301.453
Termination or Discontinuance of Franchise 2301.454
Modification or Replacement of Franchise 2301.455
Determination of Good Cause for Termination, Discontinuance, Modification, or Replacement 2301.456
Use of Advertising 2301.457
Prohibition: Change of Franchised Dealer’s Capital Structure 2301.458
Prohibition: Change in Dealer Ownership 2301.459
Prohibition: Use of Promissory Note, Security Agreement, or Insurance Policy 2301.460
Warranty, Preparation, or Delivery Agreement Obligations 2301.461
Liability of Franchised Dealer 2301.462
Succession Following Death of Franchised Dealer 2301.463
Prohibition: Payment of Rebate by Franchised Dealer 2301.464
Relocation of Franchise 2301.465
Payment to Franchised Dealer Following Termination of Franchise 2301.466
Arbitration 2301.467
Prohibitions: Sales Standards, Relocations, Facility Changes, Purchase of Equipment 2301.468
Inequitable Treatment of Dealers or Franchisees 2301.469
Costs of Product Recall 2301.470
Prohibition: Conditions for Financing Motor Vehicle 2301.471
Use of Financing Subsidiary 2301.472
Addition of Line-make 2301.473
Models Within Line-make 2301.474
Payment of Costs for Administrative or Civil Proceeding 2301.475
Manufacturer or Distributor Incentive Programs: Audit or Chargeback 2301.476
Manufacturer or Distributor Ownership, Operation, or Control of Dealership 2301.477
Manufacturer Doing Business in This State 2301.478
Action on Franchise 2301.479
Adverse Action in Connection with Export of Vehicle 2301.480
Disclosure of Certain Information 2301.481
Property Use Agreement 2301.482
Certain Property Use Agreements 2301.483
Specific Use Agreements 2301.521
Definition 2301.522
Mediation Applicable 2301.523
Mediator 2301.524
Location and Schedule of Mediation 2301.525
Law Applicable 2301.526
Costs of Mediation 2301.527
Jurisdiction of Board 2301.528
Effect of Mediation on Chapter 2301.529
Outcome of Mediation 2301.551
Acceptance and Payment of Fees by Vehicle Lessor 2301.552
Appointment of Vehicle Lease Facilitator 2301.553
Disclosure of Fee Required 2301.554
Terms of Lease: Foreign Countries 2301.555
Limitations on Vehicle Lease Facilitator 2301.556
Use of Certain Terms 2301.601
Definitions 2301.602
Duty of Board 2301.603
Conformance with Warranty Required 2301.604
Replacement of or Refund for Vehicle 2301.605
Rebuttable Presumption--reasonable Number of Attempts 2301.606
Conduct of Proceedings 2301.607
Exhaustion of Administrative Remedies 2301.608
Assessment of Costs for Replacement or Refund 2301.609
Judicial Review 2301.610
Disclosure Statement 2301.611
Annual Report on Repurchased or Replaced Vehicles 2301.612
Open Records Exception 2301.613
Notice to Buyer 2301.651
Denial, Revocation, or Suspension Generally 2301.652
Denial of License Application: Dealership 2301.653
Revocation or Suspension of Manufacturer’s or Distributor’s License 2301.654
Probation 2301.701
Definition 2301.702
Conflict with Other Law 2301.703
Hearing Required in Contested Case 2301.704
Hearings Examiner 2301.705
Notice of Contested Case Hearing 2301.706
Notice of Rulemaking Hearing 2301.707
Contents of Hearing Notice 2301.708
Conduct of Hearing 2301.709
Review by Board 2301.710
Dismissal of Complaint 2301.711
Orders and Decisions 2301.712
Filing Fee 2301.713
Rehearing 2301.751
Judicial Review Generally 2301.752
Time for Filing 2301.753
Additional Evidence 2301.754
Dismissal for Failure to Prosecute 2301.755
Effect of Appeal on Order 2301.756
Review of Interlocutory Order 2301.801
Civil Penalty 2301.802
Cease and Desist Order 2301.803
Statutory Stay 2301.804
Suit for Injunctive Relief or Civil Penalty 2301.805
Relief Under Other Law 2301.806
Board Exempt from Filing Fee 2301.807
Refund 2301.851
Certain Charges Included in Customer Agreement 2301.852
Use or Retention of Salvage Motor Vehicle 2301.853
Criminal Penalty 2301.2575
Request for Dealer’s License Application Confidential 2301.4651
Additional Payment to Franchised Dealer in Certain Situations 2301.4671
Franchise Provision Establishing Restriction on Dealer’s Use of Dealership Property 2301.4749
Manufacturer or Distributor Incentive Programs: Payment to Dealer 2301.5555
Authority to Sign Vehicle Lease as Lessor 2301.6521
Right to Protest: Certain Relocations 2301.6522
Right to Protest: Economically Impaired Dealer 2301.7025
Limitations Period for Certain Causes of Action by License Holders
Green check means up to date. Up to date

Accessed:
Jun. 5, 2024

§ 2301.455’s source at texas​.gov