A manufacturer must give written notice (containing specific language) to the dealer and the New Motor Vehicle board in order to properly terminate a franchise. The written notice must be received 60 days before the effective date of the termination and set forth the specific grounds for termination. In some instances, however, the written notice must only be received 15 days before the effective date of the termination.
If a manufacturer seeks to modify or replace an existing franchisee agreement with a succeeding agreement it must give the dealer written notice (containing specific language) of the request at least 60 days prior to the modification or replacement. Upon receiving written notice of termination or modification, a dealer may file a protest to the New Motor Vehicle Board. The protest must have specific content and must be filed within 10 days of a 15-day notice or within 30 days of a 60-day notice. The New Motor Vehicle Board will then conduct a hearing and issue a decision as to whether the termination or modification by the manufacturer was proper. The Board’s decision may be appealed to the Superior Court. See Cal. Vehicle Code § 3060.