CS/CS/HB 429 2025
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F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
A bill to be entitled 1
An act relating to motor vehicle manufacturers and 2
franchised motor vehicle dealers; amending s. 320.64, 3
F.S.; prohibiting an applicant or a licensee, or a 4
common entity thereof, from establishing, 5
implementing, or enforcing certain criteria for 6
measuring the sales or service performance of its 7
franchised motor vehicle dealers unless certain 8
conditions are met; prohibiting an applicant or a 9
licensee, or a common entity thereof, from engaging in 10
an action that is taken as retaliation against a motor 11
vehicle dealer under certain circumstances; amending 12
s. 320.641, F.S.; revising the circumstances in which 13
a discontinuation, cancellation, nonrenewal, 14
modification, or replacement of a franchise agreement 15
is deemed unfair; providing an effective date. 16
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Be It Enacted by the Legislature of the State of Florida: 18
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Section 1. Subsection (42) of section 320.64, Florida 20
Statutes, is amended, and subsection (43) is added to that 21
section, to read: 22
320.64 Denial, suspension, or revocation of license; 23
grounds.—A license of a licensee under s. 320.61 may be denied, 24
suspended, or revoked within the entire state or at any specific 25
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F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
location or locations within the sta te at which the applicant or 26
licensee engages or proposes to engage in business, upon proof 27
that the section was violated with sufficient frequency to 28
establish a pattern of wrongdoing, and a licensee or applicant 29
shall be liable for claims and remedies pr ovided in ss. 320.695 30
and 320.697 for any violation of any of the following 31
provisions. A licensee is prohibited from committing the 32
following acts: 33
(42)(a) The applicant or licensee , or a common entity 34
thereof, has established, implemented, or enforced criteria for 35
measuring the sales or service performance of any of its 36
franchised motor vehicle dealers in this state which have a 37
material or adverse effect on any motor vehicle dealer and 38
which: 39
1. Are unfair, unreasonable, arbitrary, or inequitable; or 40
2. Do not include all relevant and material local and 41
regional criteria, data, and facts. Relevant and material 42
criteria, data, or facts include, but are not limited to, those 43
of motor vehicle dealerships of comparable size in comparable 44
markets. If such performance measurement criteria are based, in 45
whole or in part, on a survey, such survey must be based on a 46
statistically significant and valid random sample. 47
(b) The An applicant or, licensee, or a common entity 48
thereof, has implemented or enforced c riteria for measuring the 49
sales or service performance of any of its franchised motor 50
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F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
vehicle dealers in this state without first making available and 51
readily accessible, before such implementation or enforcement, a 52
written description to each such franchi sed, or an affiliate 53
thereof, which enforces against any motor vehicle dealer any 54
such performance measurement criteria shall, upon the request of 55
the motor vehicle dealer, describe in writing to the motor 56
vehicle dealer in this state which describes , in detail, how the 57
performance measurement criteria were designed, calculated, 58
established, and uniformly applied. 59
(43) The applicant or licensee, or a common entity 60
thereof, has engaged in an action, or implemented a policy, 61
standard, rule, practice, or pro gram, taken as retaliation 62
against a motor vehicle dealer because the dealer invoked a 63
statutory right created by ss. 320.60 -320.70, asserted that the 64
applicant, licensee, or common entity has acted in a manner that 65
violates a provision of ss. 320.60 -320.70, or has testified, 66
assisted, or participated in any manner in an investigation, a 67
proceeding, or a hearing that may directly affect the applicant, 68
licensee, or common entity. 69
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A motor vehicle dealer who can demonstrate that a violation of, 71
or failure to comply with, any of the preceding provisions by an 72
applicant or licensee will or may adversely and pecuniarily 73
affect the complaining dealer, shall be entitled to pursue all 74
of the remedies, procedures, and rights of recovery available 75
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F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
under ss. 320.695 an d 320.697. 76
Section 2. Subsection (3) of section 320.641, Florida 77
Statutes, is amended to read: 78
320.641 Discontinuations, cancellations, nonrenewals, 79
modifications, and replacement of franchise agreements. — 80
(3) Any motor vehicle dealer who receives a notice of 81
intent to discontinue, cancel, not renew, modify, or replace 82
may, within the 90-day notice period, file a petition or 83
complaint for a determination of whether such action is an 84
unfair or prohibited discontinuation, cancellation, nonrenewal, 85
modification, or replacement. Agreements and certificates of 86
appointment must shall continue in effect until final 87
determination of the issues raised in such petition or complaint 88
by the motor vehicle dealer. A discontinuation, cancellation, or 89
nonrenewal of a franchise agreement is unfair if it is not 90
clearly permitted by the franchise agreement; is not undertaken 91
in good faith; is not undertaken for good cause; or is not based 92
on a material and substantial an alleged breach of the franchise 93
agreement by the motor vehicle dealer which is not in fact a 94
material and substantial breach ; or, if the grounds relied upon 95
for termination, cancellation, or nonrenewal have not been 96
applied in a uniform and consistent manner by the licensee. If 97
the notice of discontinuat ion, cancellation, or nonrenewal 98
relates to an alleged failure of the new motor vehicle dealer's 99
sales or service performance obligations under the franchise 100
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F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
agreement, the new motor vehicle dealer must first be provided 101
with at least 180 days to correct t he alleged failure before a 102
licensee may send the notice of discontinuation, cancellation, 103
or nonrenewal. A modification or replacement is unfair if it is 104
not clearly permitted by the franchise agreement; is not 105
undertaken in good faith; or is not undertak en for good cause. 106
The applicant or licensee has shall have the burden of proof 107
that such discontinuation, cancellation, nonrenewal, 108
modification, or replacement action is fair and not prohibited. 109
Section 3. This act shall take effect July 1, 2025. 110