15C-7.004. Special Requirements for the Licensing of a Franchise Motor Vehicle Dealer

(1) Purpose and Scope. The purpose of this rule is to provide guidelines and standards for the filing of a notice of intent to establish an additional point franchise motor vehicle dealer license and to establish the requirements for filing a preliminary application for a franchise motor vehicle dealer license. The rule addresses the requirement for notifying potentially affected dealers of their rights and provides for the handling and disposition of advanced letters of commitment either protesting or not protesting the establishment of a dealership. The rule further provides time frames within which certain actions must occur, clarifies the conditions for licensing a supplemental location and for the relocation and reopening of existing dealerships. The rule also specifies the manner and time frames for the reporting of minority recruitment efforts.

(2) Definitions.

(a) The words or terms “Department”, “line-make”, “dealer”, and “minority dealer” as used in this rule shall have the meanings ascribed to them in Sections 320.60-.70, F.S.

(b) As used in this rule, the following words or terms shall have the meanings ascribed herein:

1. Applicant – means a business seeking a license as a franchise motor vehicle dealership.

2. Contiguous county – means a county having a point of common boundary with another county. Boundaries of counties which meet at a diagonal across the intersecting lines shall be deemed to be contiguous.

3. Licensee – means a motor vehicle manufacturer, importer or distributor.

4. The terms petition, complaint, notice of protest, and letter of protest are interchangeable.

5. Principal investor – means any person, firm or entity having a ten percent (10%) or more financial interest in a proposed dealership. In the case of a publicly held corporation, principal investor shall mean the individuals or entities who manage the corporation.

6. Specific location – means a sufficiently identified piece of property that can be described by a physical location address assigned by the United States Postal Service or by a legal description, or both. In those instances where an address is unavailable, the legal description shall refer to generally known public streets and highways, including the distance from the nearest major cross street, for example: “North side of U.S. Highway 301, 1.3 miles east of intersection with State Road 60.”

(3) Filing of Licensee’s Notice and Applicant’s Preliminary Application.

(a) Simultaneously with the filing of the notice by the licensee required by Section 320.642(1), F.S., the applicant, which is not currently a licensed dealer at the proposed location, may file a preliminary application for a franchised motor vehicle dealer license on form HSMV 84011, Application For A License As A Motor Vehicle, Mobile Home or Recreational Vehicle Dealer, which is hereby adopted by reference, furnished by the Department. The filing of a preliminary application is optional but if filed the application shall be completed in the same manner as a final application, except that the following items are not required at the time of the filing of the preliminary application:

1. The physical inspection report of the facility completed by the Department.

2. The surety bond or irrevocable letter of credit.

3. Evidence of garage liability insurance.

4. Evidence of completion by a dealership representative of the training offered by the Department.

5. Evidence of registration for sales and use tax purposes with the Department of Revenue.

6. A true copy of the lease of the property on which the dealership is to be located, if applicable.

7. Evidence that a Federal Employer’s Identification number has been applied for or obtained.

(b) The following items must accompany the completed preliminary application:

1. A copy of the articles of incorporation to show that the corporate name has been reserved (if the business is to operate as a corporation).

2. Fingerprint cards for all owners/partners/officers/directors whose names appear on the application.

3. The initial application fee.

(c) If the notice by the licensee proposes to add a line-make to a dealership not previously franchised for that line-make, the licensed dealer shall, simultaneously with the filing of the licensee’s notice, file an application on form HSMV 84011, Application For A License As A Motor Vehicle, Mobile Home or Recreational Vehicle Dealer, which is hereby adopted by reference, provided by the Department to amend its license to add that line-make to its license.

(d)1. If the notice by the licensee proposes a supplemental location to a currently licensed line-make dealership, the dealer shall, simultaneously with the filing of the licensee’s notice, file an application for a supplemental license on form HSMV 84011, Application For A License As A Motor Vehicle, Mobile Home or Recreational Vehicle Dealer, which is hereby adopted by reference, provided by the Department in accordance with Section 320.27(5), F.S.

2. A supplemental license shall not be required of a dealer who desires to add to or expand its dealership to a contiguous piece of real estate. For the purpose of determining whether a piece of real estate is “contiguous” with any other piece of real estate, as the term “contiguous” is used in Section 320.27(5), F.S., intervening streets, highways, utility easements, drainage and stormwater canals, retaining ponds, and other similar public ways, shall not be considered, provided the parcel of real estate on which the added or expanded place of business is to be located is not more than 200 feet from the existing and licensed place of business. Parcels of real estate separated by limited access highways, navigable waterways or privately owned real estate shall not be considered “contiguous” for purposes of this rule. A dealer who adds to or expands a business under these circumstances shall notify the dealer license section of the department, in writing, of such activity.

(e) A notice by the licensee may not be amended in any manner which alters the specific location of the proposed dealership, nor may a preliminary filing of an application be amended to be inconsistent with the specific location contained in the notice. Alteration of a specific location requires the filing of a new notice and a new preliminary application.

(4) Application for Reopening or Successor Dealership, or for Relocation of Existing Dealership.

(a) If the license of an existing franchised motor vehicle dealer is revoked for any reason, or surrendered, an application for a license to permit the reopening of the same dealer or a successor dealer within twelve months of the license revocation or surrender shall not be considered the establishment of an additional dealership if one of the conditions set forth in Section 320.642(5), F.S., is met by the proposed dealer.

(b) An application for change of address by an existing dealer under this section shall be filed on form HSMV 84712, Application For Change of Location (Address) Of Dealer In Motor Vehicles, Mobile Homes or Recreational Vehicles, which is hereby adopted by reference, provided by the Department. The dealer shall indicate which provision of Section 320.642(5), F.S., if any, it contends exempts the proposed location from consideration as an additional dealership.

(c) An application for a dealership intended as a successor dealership shall be accompanied by a letter from the licensee clearly stating that the applicant is intended as a successor dealership and shall identify the prior dealership to be replaced.

(5) Notice to Existing Dealers.

(a) The notice transmitted to existing dealers in accordance with Section 320.642(1), F.S., shall include a general description of the requirements and instructions for the filing of petitions, complaints or notice protesting the establishment or relocation of a dealership including the address of the agency clerk designated for this purpose; and the date on which the notice was published in the Florida Administrative Register.

(b) If the notice by the licensee proposes a relocation of an existing dealership or reopening of the same or of a successor dealership which does not qualify under one of the exemptions contained in Section 320.642(5), F.S., notice shall be published in the Florida Administrative Register and mailed to all licensed dealers in compliance with Section 320.642(1), F.S., and this rule.

(6) Filing of Petitions or Complaints by Existing Dealers.

(a) Petitions or complaints protesting the establishment or relocation of dealerships may be filed only after the publication of the notice required in Section 320.642(1), F.S.

(b) Petitions, complaints or notices protesting the establishment or relocation of a dealership must be filed with and received by the agency clerk not more than thirty calendar days from the date notice is published in the Florida Administrative Register.

(c) Any petitions or complaints, or correspondence indicating any intent to file or not to file a petition or complaint, which are filed prior to publication of the notice shall be returned to the sender.

(7) Hearing and Post-Hearing Procedures.

(a) Upon receipt of a petition, complaint or notice protesting the establishment or relocation of a dealership, the Department shall transmit the petition or complaint to the Division of Administrative Hearings within the time specified in Section 120.57(1)(b)3., F.S. The Department shall request that hearing, pursuant to the requirements of Section 120.57(1), F.S., or other proceedings necessary for the disposition of the petition or complaint, be conducted with respect to all issues contained in Section 320.642, F.S.

(b) Upon the issuance of a recommended order by the Division of Administrative Hearings, the parties shall have 20 days to file exceptions to the recommended order with the Department. Thereafter, the Department will issue a final order determining whether the proposed additional or relocated dealership shall be approved or rejected. If approved, the final order shall state that the license sought by the applicant shall be granted upon compliance with all other applicable provisions of Chapter 320, F.S. and this rule.

(c) The issuance of a final order with respect to the issues provided in Section 320.642, F.S., shall not constitute a finding by the Department that the applicant complies with the other requirements of Chapter 320, F.S.

(d) If the proposed additional or relocated dealership is approved, construction on the dealership shall begin within twelve months of the date of final order. The applicant must complete construction and finalize its preliminary application for license within twenty-four months of the date of the final order. This period may be extended by the Department for good cause.

(e) For the purposes of computation of the time limits imposed by this section, the filing of an appeal of the final order shall toll the running of the times provided until the final disposition of the appeal, including disposition of motions for rehearing or petitions for review to the Supreme Court of Florida. The filing of an appeal shall not interfere with the issuance of a license, if sought by the applicant, unless a stay is issued pursuant to applicable law.

(f) Finalization of the application shall consist of furnishing all information and documents not required to be filed with the preliminary application.

(8) Transfer, Assignment or Sale of Franchise Agreements.

(a) Subsequent to the notification by a dealer to a licensee of a proposed transfer of a franchise as required by Section 320.643, F.S., the proposed transferee may file a preliminary application with the Department.

(b) This preliminary application shall fulfill all requirements of the final application with the exception of the provision of a copy of the franchise agreement between the proposed transferee and the licensee, a forfeiture statement by the transferor, an acceptance statement by the transferee, and the surrender of the license of the selling dealer.

(c) The Department shall immediately commence processing the application and, upon completion of processing, shall indicate to the proposed transferee whether its license will be issued if the licensee approves the transfer and the transfer is consummated between the selling dealer and the transferee.

(d) If the application complies with all requirements of law, it shall be issued, upon the consummation of the transfer, and the provision to the Department of:

1. A copy of the transferee’s franchise with the licensee;

2. A forfeiture statement by the selling dealer;

3. An acceptance statement by the transferee; and

4. The license of the selling dealer.

(9) Computation of Sales. For the purpose of computing sales in compliance with Sections 320.642(3)(a)3. and 320.642(3)(b)2., F.S., the thirty-six month period shall be deemed to expire on the last day of the month preceding the month in which the notice of the licensee is published in the Florida Administrative Register.

(10) Minority Recruitment.

(a) At the time of applying for the renewal of a manufacturer, distributor or importer license, the licensee shall file an annual report with the Department of its efforts to add new minority dealer points. The report shall include a description of difficulties encountered in attempting to add new minority dealers under the provisions of Sections 320.60-320.70, F.S. The report shall be submitted on form HSMV 84020, Annual Report on Addition Of Minority Dealer Points, which is hereby adopted by reference, provided by the Department and shall accompany the application for renewal.

(b) No renewal application shall be processed nor any license issued unless and until the minority recruitment report is submitted to the Department in the form prescribed.

(11) Agency Clerk. The agency Clerk for the filing of all documents under Sections 320.60 through 320.70, F.S., shall be the supervisor of the Dealer License Section, Room A-312, Neil Kirkman Building, 2900 Apalachee Parkway, Tallahassee, Florida 32399-0635.

(12) Forms. All forms mentioned in or required by this rule may be obtained free of charge from the Department by contacting any License and Registration Inspector or any Regional Office of the Bureau of Licenses and Enforcement, Division of Motorist Services. Addresses and telephone numbers are available from the bureau, Room 308, 2900 Apalachee Parkway, Tallahassee, Florida 32399.

Rulemaking Authority 320.011, 320.69 FS. Law Implemented 320.27(5), 320.60, 320.61-.70 FS. History–New 10-14-91, Amended 11-17-98.