| (a) To effectuate Occupations Code, §2301.356, every licensed dealer who proposes to conduct business at a currently licensed showroom under a franchise that is additional to or that differs from the franchise or franchises on which the license is then based shall file an application to amend the license on the form prescribed by the division, attaching a copy of the franchise agreement. The amended application will be considered as if it were an original application to operate under the additional franchise as to all matters except those reflected by the license as issued. (b) A licensed dealer who proposes to sell and/or assign to another any interest in the licensed entity, whether a corporation or otherwise, so long as the physical location of the licensed entity remains the same, shall notify the division in writing within ten days of the change by filing an application to amend the license. If the sale or assignment of any portion of the business results in a change of entity, then the purchasing/assignee entity must apply for and obtain a new license. Publicly-held corporations need only inform the division of a change in ownership if one person or entity acquires 10% or greater interest in the licensee. (c) In the event of a change in management reflected by a change of the general manager, dealer principal, or other person who is in charge of a licensee's business activities, whether a managing partner, officer, or director of a corporation, or otherwise, the division shall be advised by means of an application for an amended license. (d) If a licensed new motor vehicle dealer changes or converts from one type of business entity to another 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 division prior to the change or conversion of the dealer's business entity applies to the successor entity until the parties agree to replace the franchise agreement. (e) 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 division. The franchise agreement on file with the division continues to apply to the converted entity. If the entity change is accomplished by any means other than conversion, a new application is required, subject to subsection (d) of this section. (f) A licensee shall obtain division approval prior to the opening of a supplemental location, or the relocation of an existing location. A licensee must notify the division when closing an existing location. |
