Legal Question in Business Law in Massachusetts
motocyle dealer
Are there any mileage limitations in Ma. as pertaining to opening a franchise motorcyle dealership. Can you open a Honda dealer lets say next to another Honda dealer or are there specific mileage stipulations,and if there are what is the distance.
3 Answers from Attorneys
Re: motocyle dealer
The Franchisor sets territory limits. Request a Franchise Offering Circular from the Franchisor (usually can be done online). If you have any questions about the FOC you should have it reviewed by an attorney.
Re: motocyle dealer
Generally the distance requirement you refer to is set by the franchisor, not the State. Honda dealerships are limited by Honda and placement is generally limited based on a specific set of demographics.
I hope this was helpful. If you have additional questions please feel free to call me.
Re: motocyle dealer
Typically, a franchise agreement will stipulate the proximity of one franchise to another. There is no per se limitation, it is up to the franchisor. Remember, it is not in the interest of the franchisor to have its franchisees competing directly with one another. Usually, you will get a specific territory in which another franchise cannot open. I would be happy to discuss this further with you. Please call my office. Barry
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