---
title: O.C.G.A. § 10-1-653. Sale of dealership franchise; notice to franchisor.
collection: code
id: 10-1-653
cite_as: O.C.G.A. § 10-1-653 (2025)
canonical_url: https://georgiacommons.org/code/10-1-653
md_url: https://georgiacommons.org/code/10-1-653.md
text_url: https://georgiacommons.org/code/10-1-653/text
source_url: https://www.legis.ga.gov/api/document/docs/default-source/joint-features-document-library/t10-(v8)-2024-pdf.pdf?sfvrsn=1992b47e_0#page=464
date: 2025
status: active
corpus_version: 2025-supplement-89aa39ab3c68
license: CC0-1.0
publisher: Georgia Commons, an independent project of Georgia Civic Data. Not the State of Georgia. Not legal advice.
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index: https://georgiacommons.org/code/index.md
version: the only printed version
in_force: true
current_through: Including Acts of the 2025 Regular Session of the General Assembly
heading_path: COMMERCE AND TRADE / SELLING AND OTHER TRADE PRACTICES / MOTOR VEHICLE FRANCHISE PRACTICES / MOTOR VEHICLE FRANCHISE CONTINUATION AND SUCCESSION
---

# O.C.G.A. § 10-1-653. Sale of dealership franchise; notice to franchisor.

If a new motor vehicle dealer desires to make a change in its executive management or ownership or to sell its principal assets, the new motor vehicle dealer will give the franchisor prior written notice of the proposed change or sale. The franchisor shall not arbitrarily refuse to agree to such proposed change or sale and may not disapprove or withhold approval of such change or sale unless the franchisor can prove that its decision is not arbitrary and that the new management, owner, or transferee is unfit or unqualified to be a dealer based on the franchisor’s prior written, reasonable, objective, and uniformly applied, within reasonable classifications, standards or qualifications which directly relate to the prospective transferee’s business experience, moral character, and financial qualifications. A franchisor may not disapprove or withhold approval of a change or sale if the new management, owner, or transferee is an owner of a dealership in the State of Georgia which sells the same line-make motor vehicle as the dealership being transferred unless such management, owner, or transferee is not in substantial compliance with its existing franchise agreement relating to performance in the areas of customer satisfaction or sales or unless such management, owner, or transferee does not meet the franchisor’s prior written, reasonable, objective, and uniformly applied standards or qualifications relating to its financial qualifications or moral character. Where the franchisor rejects a proposed change or sale, the franchisor shall give written notice of his reasons to the new motor vehicle dealer within 60 days. If no such notice is given to the new motor vehicle dealer, the change or sale shall be deemed approved.

## History

Code 1981, § 10-1-653, enacted by Ga. L. 1993, p. 1585, § 2; Ga. L. 1999, p. 1194, § 4.