Mon Sep 9, 2019
Author: RV News Staff
In less than two months, Pennsylvania’s new RV-specific franchise law takes effect, pulling RV dealerships out of the state’s automobile dealership franchise regulations.
The bill also revises the state’s dealer licensing requirements, adding off-site sales activities such as shows or rallies to the dealership’s existing surety bond. Others who are not licensed RV dealers and plan to sell RVs at off-site shows and rallies are required to post the bond.
Passed in October, 2018, SB 764 clarifies the definitions of various RVs types and removes them from the auto franchise section of state regs. The bill then creates a new section covering the roles and responsibilities, including warranties, under franchise agreements.
According to RVIA, enactment of the Pennsylvania franchise specific rule is the latest in its ongoing effort to successfully advocate for consistent state rules differentiating the business relationship between auto manufacturers and their dealers and that of RV manufacturers and RV dealers.
Depending on how the state laws are tallied, there are now 23 states that have passed RV specific franchise laws, more than have of which were based on RVIA’s model legislation.
In the automobile world, dealers typically have a franchise agreement with a single manufacturer. Dealership agreements between RV manufacturers and RV dealers are not true franchises, RVIA says.
The RV industry is not vertically integrated with parts and supply chains flowing upward to the manufacturer. This basic difference between auto and RV manufacturing creates a substantially different business model, including for warranty obligations, RVIA says.
Pennsylvania’s RV specific franchise law provides consistency in the manufacturer-dealer relationship from state to state while providing mutual benefits for RV dealers, it says.
The Pennsylvania RV and Camping Association was actively involved in passage of SB 764 as were State Sens. John Gordner, John Rafferty Jr., Christine Tartaglione David Argall, RVIA adds.
RV News covered the bill when it was introduced in the Pennsylvania legislature in May 2018. Read our story here.
Under the new law, a licensed RV dealer only need to post a surety bond once to cover their business; off-site sales activities such as shows or rallies are included in their bond, PRVCA says.