New Mexico Passes New Regulations on Motor Vehicle Franchises

A recently enacted New Mexico law prohibits automobile manufacturers from requiring a dealer to build a new dealership or relocate an existing dealership unless it is necessary to comply with health and safety laws or the technological requirements of selling certain services. Manufacturers are also prohibited from conditioning their approval of certain purchases on the remodeling or construction of a dealership. The law went into effect on June 14, 2013. The text of the bill can be read here.

Delaware Recognizes Franchisees as Independent Contractors

The State of Delaware has enacted a law clarifying that the franchisee/franchisor relationship is not equivalent to an employee/employer relationship for purposes of interpreting certain Delaware wage and employment laws. Pursuant to HB 55, franchisees are considered independent contractors.

The bill was signed into law by Governor Jack Markell after being passed unanimously by both the Delaware House and Senate. The International Franchise Association applauded the passage of the new bill, saying that it was necessary to allow franchising to remain a growing force in the Delaware economy. The International Franchise Association will likely pursue similar measures in other states in the near future.