FRANCHISE TERMINATION CHANGES

This New Mexico bill amends the Franchise Termination Act to strengthen protections for equipment dealers (retailers of farm tractors, construction equipment, and related parts) when suppliers seek to end their agreements. It requires suppliers to provide dealers with 180 days' written notice before termination (with exceptions for bankruptcy, felony convictions, or failure to operate), clearly stating the reasons and granting a 60-day period to fix issues. Suppliers must also respond to dealer transfer requests within 60 days or the request is automatically approved, with written denials requiring specific justification. The law clarifies "good cause" for termination and ensures dealers have time to address concerns before losing their franchise.