| (a) In accordance with Occupations Code, §2301.356,
a franchised dealer must file an application to amend the franchised
dealer's license in order to request inclusion of an additional line-make
at the dealer's currently licensed showroom.
(1) In accordance with §215.110 of this title
(relating to Evidence of Franchise), the franchised dealer must attach
to the amendment application a copy 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.
(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.
(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 needs only to inform
the department of a change in ownership if one person or entity acquires
10% or greater interest in the licensed entity.
(c) A franchised dealer is required to file an amendment
application 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;
(5) a change of facsimile number; or
(6) a change of email address.
(d) A franchised dealer is required to file a business
entity amendment application within 10 days of an entity change, including:
(1) a change in management, dealer principal, or change
of other person who is in charge of 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 licensed new motor vehicle 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 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 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 application to amend the license
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 shall obtain department approval
prior to opening a supplemental location or relocating an existing
location. A franchised dealer must notify the department when closing
an existing location.
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