Utah § 13-35-307 - Franchisor's repurchase obligations upon termination or noncontinuation of franchise.

Full text of Utah Utah Code § 13-35-307 — Franchisor's repurchase obligations upon termination or noncontinuation of franchise., with citation guidance and answers to common questions.

§ 13-35-307. Franchisor's repurchase obligations upon termination or noncontinuation of franchise.

13-35-307.  Franchisor's repurchase obligations upon termination or noncontinuation of franchise.
(1)
(a) Except as provided in Subsection (1)(b), if a franchise is terminated or not continued by the franchisor or franchisee, the franchisor shall pay the franchisee:
(i) the franchisee's cost of new, undamaged, unsold, and unregistered powersport vehicles in the franchisee's inventory acquired from the franchisor or another franchisee of the same line-make and invoiced during the 30-month period immediately before the franchise is terminated or not continued;
(ii) any charges made by the franchisor for distribution, delivery, or taxes;
(iii) the franchisee's cost of any accessories added on a vehicle;
(iv) the cost of new, undamaged, and unsold supplies, parts, and accessories as set forth in the franchisor's catalog at the time of termination or noncontinuation less all allowances paid or credited to the franchisee by the franchisor;
(v) except as provided in Subsection (1)(c), the fair market value, but not less than the franchisee's depreciated acquisition cost, of each undamaged sign owned by the franchisee that bears a common name, trade name, or trademark of the franchisor if acquisition of the sign was recommended or required by the franchisor;
(vi) the fair market value, but not less than the franchisee's depreciated acquisition cost, of all special tools, equipment, and furnishings acquired from the franchisor or sources approved by the franchisor that were recommended or required by the franchisor and are in good and usable condition; and
(vii) the cost of transporting, handling, packing, and loading powersport vehicles, supplies, parts, accessories, signs, special tools, equipment, and furnishings.
(b) The franchisor may deduct the sum of all allowances paid or credited to the franchisee by the franchisor from the amount owed under Subsection (1)(a).
(c) If a franchisee has a sign with multiple manufacturers listed, the franchisor shall pay only for its pro rata portion of the sign described in Subsection (1)(a)(v).
(2) The franchisor shall pay the franchisee the amounts specified in Subsection (1) within 90 days after the tender of the property to the franchisor if the franchisee has:
(a) clear title to the property; or
(b) the manufacturer's statement of origin.
(3) If repurchased inventory and equipment are subject to a security interest, the franchisor may make payment jointly to the franchisee and to the holder of the security interest.


Amended by Chapter 262, 2012 General Session

Source: official Utah text · Last verified 2026-08-27

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Frequently Asked Questions About Utah § 13-35-307

What does Utah Code § 13-35-307 cover?

Section 13-35-307 ("Franchisor's repurchase obligations upon termination or noncontinuation of franchise.") is part of the Utah Code, the codified statutory law of Utah. It sets out the legal rule or procedure described in the text above. Statutes are amended regularly, so always verify against the official source.

How do I cite Utah § 13-35-307?

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Is this the official text of Utah law?

No. This page is for research and education and may not include the most recent amendments. For official current law, check the Utah official source linked on this page or consult a licensed Utah attorney.

How does Utah § 13-35-307 apply to my situation?

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