It`s no secret that Ford wants to reduce its number of Ford and Lincoln dealerships in metro markets. Consolidations, while voluntary, often involve large sums of money from Ford or neighboring dealers to entice other dealers to abandon their franchises. Before you can apply for financing and launch your car dealership, you need a formal business plan. The plan should explain the dealer structure, marketing plans, revenue estimates, expected expenses, and the research you`ll find. Be sure to check your plan several times for mistakes in kind, formatting and spelling, as this is an attempt to apply for funding. The SBA and other resources have templates for business owners. The Australian Automobile Dealers Association (AADA) – which represents 50,000 employees working in around 3500 showrooms of 1500 dealer groups – says the revised franchise agreements do not go far enough to ensure dealers do not collapse under the pressure of “unfair and unilateral contracts” with car companies. The Federal Minister for Employment, Qualifications, Small Business and Family, Michaelia Cash, said in the same statement in the media that “the proposed rules, as well as the work of the franchise task force, will strike the right balance between franchisees and franchisees to ensure the development and success of the sector. avoiding unnecessary bureaucracy.” “The franchise sector makes an important contribution to the Australian economy and we know that if supported, more jobs will be created for hard-working Australians,” said Minister Andrews. AADA says that while the Australian Competition and Consumer Commission (ACCC) has engaged automakers in recent years, including the imposition of record penalties for misconduct, the proposed franchise agreements for Australia fall short of best practices in the U.S. and Europe.

A recent appeal decision in Alberta states that a receiver can sell a franchise agreement to a third party, despite the franchisee`s objections, in accordance with the Bankruptcy and Insolvency Act (BIA). The Alberta Court of Appeal`s decision in Ford Motor Company of Canada Ltd v. Welcome Ford Sales Ltd contains three important messages for franchisees: “It is so important that these rules be strengthened before they are completed, especially since new car sales have been declining for 22 months and a number of regional dealerships have had to close their doors.” Mr. Voortman said. “There are car dealers in Australia who, for many years, have invested millions of dollars in facilities, inventory and equipment at the request of manufacturers for the sole purpose of securing a one-year contract,” Voortman said. “To put this in the right perspective, there are fast food franchisees with much lower capital investment requirements who get 20-year contracts from their franchisor,” he said. Transit service If you want to wait for Ford Transit vans and perform warranty operations, you must apply for a transit service deductible. A dealer recently agreed to sell its Lincoln franchise to Ford. He told me that Ford`s bar offer was very fair.