Cadillac weeds out smaller dealerships with $120,000 buyout offers

[FeedBot]

Cadillac's head honcho, Johan de Nysschen, loves to ruffle feathers, so it shouldn't surprise anyone that his grand vision for General Motors' premium brand is bold, brash, and a little controversial. However, critics charge that de Nysschen's plan isn't just unorthodox, it may be illegal. De Nysschen: a brief history If you're like many people...

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[Ringo64]

Pretty sure as a Franchise you can cut your branding any time. Don't call me a lawyer though...

[Professur]

Up here at least, a renter has certain protections. The owner can't just decide to not renew a lease. If you're already there, you get first refusal at renewal time. The rental board can even refuse to permit rent increases larger than the norm. The owner isn't master.

 

If your dealership business has invested in a brand, there significant and substantial grounds for suing for loss of earnings if they yank your franchise without justification under the terms of the contract. Killing the olds and pontiac deals could happen as they were ending the brand and any development investment would be considered complete. But if the brand is still viable, it could be said that your investment (signs, ads, even word of mouth) must be reimbursed. AKA, to close the franchise would require a buyout.

 

Edited September 26, 2016 by Professur