| (a) In accordance with Occupations Code, §2301.356,
a franchised dealer must file an application to amend the franchised
dealer's license to request an additional line-make at the dealer's
currently licensed showroom. The amendment application must be filed
electronically in the licensing system designated by the department.
(1) In accordance with §215.110 of this title
(relating to Evidence of Franchise), the franchised dealer must attach
to the amendment application a legible and accurate electronic image
of:
(A) the executed franchise agreement;
(B) the required excerpt from the executed franchise
agreement; or
(C) an evidence of franchise form completed by the
manufacturer, distributor, or representative.
(2) The amendment application for an additional franchise
at the showroom is considered an original application and is subject
to protest, in accordance with Occupations Code, Chapter 2301, this
chapter, and Chapter 224 of this title (relating to (relating to Adjudicative
Practice and Procedure)).
(b) A franchised dealer may propose to sell or assign
to another any interest in the licensed entity, whether a corporation
or otherwise, provided the physical location of the licensed entity
remains the same.
(1) The franchised dealer shall notify the department
in writing within 10 days of the sale or assignment of interest by
filing an application to amend the franchised dealer's license electronically
in the licensing system designated by the department.
(2) If the sale or assignment of any portion of the
business results in a change of business entity, then the purchasing
entity or assignee must apply for and obtain a new license in the
name of the new business entity.
(3) A publicly-held corporation must file an amendment
application if one person or entity acquires 10% or greater interest
in the licensed entity.
(c) A franchised dealer must file an amendment application
electronically in the licensing system designated by the department
within 10 days of a license change, including:
(1) deletion of a line-make from the dealer's license;
(2) a change of assumed name on file with the Office
of the Secretary of State or county clerk;
(3) a change of mailing address;
(4) a change of telephone number; or
(5) a change of email address.
(d) A franchised dealer must file a business entity
amendment application electronically in the licensing system designated
by the department within 10 days of an entity change, including:
(1) a change in management, dealer principal, or change
of other person who oversees a franchised dealer's business activities,
including a managing partner, officer, director of a corporation,
or similar person; or
(2) a change of legal entity name on file with the
Office of the Secretary of State.
(e) If a franchised dealer changes or converts from
one type of business entity to another type of business entity without
changing ownership of the dealership, the submission of a franchise
agreement in the name of the new entity is not required in conjunction
with an amendment application. The franchise agreement on file with
the department prior to the change or conversion of the dealer's business
entity type applies to the successor entity until the parties agree
to replace the franchise agreement. This subsection does not apply
to a sole proprietorship or general partnership.
(f) If a franchised dealer adopts a plan of conversion
under a state or federal law that allows one legal entity to be converted
into another legal entity, only an amendment application is necessary
to be filed with the department. The franchise agreement on file with
the department continues to apply to the converted entity. If a license
holder becomes another legal entity by any means other than by conversion,
a new application is required, subject to subsection (e) of this section.
(g) In addition to obtaining permission from the manufacturer
or distributor, a franchised dealer must obtain department approval
prior to opening a supplemental location or relocating an existing
location by filing an amendment application electronically in the
licensing system designated by the department. A franchised dealer
must notify the department electronically in the licensing system
designated by the department when closing an existing location.
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| Source Note: The provisions of this §215.104 adopted to be effective February 11, 2010, 35 TexReg 883; amended to be effective February 13, 2017, 42 TexReg 571; amended to be effective June 1, 2024, 49 TexReg 2704 |
