Franchise

The RV Industry Association supports the enactment of RV-specific laws governing the RV dealer/manufacturer relationship in all states.

In many states, RVs are covered by automobile franchise laws even though auto dealers and RV dealers operate under very different business models. Unlike the automobile industry, there are no true franchises in the RV industry. The unique character of the RV sales and distribution model is based on one-dealer-to-many-manufacturers, versus the auto industry’s one-dealer-to-one-manufacturer model. Furthermore, the RV industry is not vertically integrated among manufacturers, parts and suppliers like the auto industry, which creates a substantive difference in warranty obligations between the two industries.

When the RV dealer/manufacturer relationship is captured and included in the auto industry franchise laws the result is a misfit. Enacting an RV-specific law means the RV industry is not out of compliance with inapplicable auto franchise laws. RV-specific laws allow the RV industry to pursue its business model without interfering in the auto industry.

RV-specific laws provide consistency for manufacturers to develop and manage dealer agreements across the states. These laws provide reciprocal advantages for RV dealers. Enactment of an RV-specific law does not disrupt state business licensing laws and state agency oversight of RV dealer/manufacturer interactions.

The RV Industry Association supports the enactment of RV-specific laws governing the RV dealer/manufacturer relationship in all states.