Auto Dealership Franchise Divestiture Lawyers
Expanding your auto business with multiple franchises can be exciting and lucrative, but when you fall on hard financial times or one franchise fails to be profitable, it can be difficult to maintain all of your franchises. Some manufacturers may even require you to divest from others before making a franchise agreement with them. Whatever the reason, you may wish to divest from a franchise, selling it off or closing it altogether. This is not always an easy process, however, and can result in a messy legal battle, and perhaps even unintended financial consequences
Franchise divestiture requires careful attention to the details of the agreements you’ve made and of regulations. It can be difficult to cover all of these bases while also working to run the rest of your auto business. Arenson Law Group, PC can make the divestiture process easier for you. Our auto dealership franchise divestiture lawyers will review your documents and correspond with all parties involved to craft a divestiture that works best for your business.
What to Consider When Divesting
Divestiture is a huge step for your auto business to take, and along with this step comes a number of important considerations. Starting your franchise was not an instant process, and neither will ending it be. Here are some of the factors you will have to consider when divesting your franchise:
- The terms of your franchise agreement
- Federal and state regulations
- The state of your relationship with the manufacturer
- Employees of the franchise
- The franchise’s remaining financial obligations
- Whether selling or closing the franchise is right for you
The details surrounding each of these will influence both the outcome of the divestiture and the path it takes. Attending to each of these details and more can make divestiture seem like a daunting task. An experienced lawyer can help you navigate all of these complicating factors and protect your interests throughout the process.
Franchise divestiture can be a difficult process, but having a steady legal hand to guide you can make it easier. The auto dealer lawyers of Arenson Law Group, PC will work diligently to protect your business’s interests along the way. We will carefully assess all of the relevant documents and respond effectively to any complaints from the manufacturer, employees, or other parties. If you are planning to divest from an auto franchise, call the Cedar Rapids franchise divestiture lawyers of Arenson Law Group, PC today at (319) 363-8199.
Written by James H. ArensonLast Updated : December 3, 2021