Add or Delete a Franchise - Auto Industry Division

 

 

Prerequesites

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  • All manufacturers doing business in Colorado must be licensed in Colorado, prior to enfranchising a Colorado Dealer.

  • All Dealers must immediately notify the board if they desire to add or delete franchises.

  • To report an addition and/or a deletion of a franchise, a Dealer must notify the Motor Vehicle Dealer Board ("Board") in writing of such.

How to Apply

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Add a Franchise

  1. To add a Franchise, submit a notification  letter to the Dealer Board via the Auto Industry Division.

  2. Include a copy of the Franchise Agreement.

  3. The notification letter must be signed by one of the following: corporate officer, LLC manager or partner.

  4. The DBA on the franchise letter must be the same as the Dealer’s licensed name.

  5. Pay Fee(s) - Check should be made payable to the Department of Revenue. All fees are subject to change July 1st of every year. Fees

  6. Failure to complete all sections of the application may result in a rejection or delay in processing.

  7. Additional Requirements

  • All documents submitted must be on 8.5” x 11” size paper.
  • Do not submit legal size copies.
  • Do not submit double sided copies.
  • Do not staple documents.

Not Currently a Franchised Dealer?

  1. If your are not currently a Franchised Dealers  and you are adding a franchise, you may follow the instructions outlined below.

  2. Submit a notification letter indicating that the franchise was granted in the licensed DBA name.
  3. Submit a License Class Change Application (DR 2658), to change from a Used Dealer to a Franchised Dealer.
  4.  If the adding of a franchise(s) will change the Dealer’s DBA name, you also must submit an Application for Dealer or Wholesaler License Name Change (DR 2024).
  5. Pay Fee(s): Check should be made payable to the Department of Revenue. All fees are subject to change July 1st of every year. Fees
  6. Failure to complete all sections of the application may result in a rejection or delay of processing.
  7. Additional Requirements
  • All documents submitted must be on 8.5” x 11” size paper.
  • Do not submit legal size copies.
  • Do not submit double sided copies.
  • Do not staple documents.

Delete a Franchise

  1. To remove/delete a Franchise, submit a notification letter to the Dealer  Board, via the Auto Industry Division.

  2. Include in the notification letter the franchise being removed/deleted.

  3. If only one (1) franchise is owned AND  it is now being deleted, the Dealer must also submit a License Class Change Application (DR 2658), to change from a Franchised Dealer to a Used Dealer.

  4. Pay Fee(s): Check should be made payable to the Department of Revenue. All fees are subject to change July 1st of every year. Fees

  5. Failure to complete all sections of the application may result in a rejection or delay of processing.

  6. Additional Requirements
  • All documents submitted must be on 8.5” x 11” size paper.
  • Do not submit legal size copies.
  • Do not submit double sided copies.
  • Do not staple documents.

Statutes and Regulations

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 Notice of Change of Address or Status

C.R.S. 44-20-119

1) The board, through the executive director, shall not issue a motor vehicle dealer's license or used motor vehicle dealer's license to any applicant therefor who has no principal place of business as is defined in this part 1. Should the motor vehicle dealer or used motor vehicle dealer change the site or location of the dealer's principal place of business, the dealer shall immediately upon making the change so notify the board in writing, and thereupon a new license shall be granted for the unexpired portion of the term of the license at a fee established pursuant to section 44-20-111. Should a motor vehicle dealer or used motor vehicle dealer, for any reason whatsoever, cease to possess a principal place of business, as defined in this part 1, from and on which the dealer conducts the business for which the dealer is licensed, the dealer shall immediately so notify in writing the board and, upon demand therefor by the board, shall deliver to it the dealer's license, which shall be held and retained until it appears to the board that the licensee again possesses a principal place of business; whereupon, the dealer's license shall be reissued. Nothing in this part 1 shall be construed to prevent a motor vehicle dealer or used motor vehicle dealer from conducting the business for which the dealer is licensed at one or more sites or locations not contiguous to the dealer's principal place of business but operated and maintained in conjunction therewith. 


(2) (a) If a motor vehicle dealer changes to a new line-make of motor vehicles, adds another franchise for the sale of new motor vehicles, or cancels or, for any cause whatever, otherwise loses a franchise for the sale of new motor vehicles, the dealer shall immediately so notify the board. In the case of a cancellation or loss of franchise, the board shall determine whether the dealer who lost the franchise should be licensed as a used motor vehicle dealer.

(b) If the motor vehicle dealer no longer possesses a franchise to sell new motor vehicles, the board shall take up, and the motor vehicle dealer shall deliver to the board, the dealer's license, and the board shall direct the director to issue the dealer a used motor vehicle dealer's license. (c) Upon the cancellation or loss of a franchise to sell new motor vehicles and the relicensing of a dealer as a used motor vehicle dealer, the dealer may continue in the business of a motor vehicle dealer for a time, not exceeding six months after the date of the relicensing of the dealer, to enable the dealer to dispose of the stock of new motor vehicles on hand at the time of relicensing, but not otherwise.

(3) If a motor vehicle salesperson is discharged, leaves an employer, or changes a place of employment, the motor vehicle dealer or used motor vehicle dealer who last employed the salesperson shall confiscate and return the salesperson's license to the board. Upon being reemployed as a motor vehicle salesperson, the motor vehicle salesperson shall notify the board. Upon receiving the notification, the board shall issue a new license for the unexpired portion of the returned license after collecting a fee set pursuant to section 44-20-111 (5). It shall be unlawful for the salesperson to act as a motor vehicle salesperson until a new license is procured.
 

(4) Should a wholesaler, for any reason whatsoever, change the wholesaler's place of business or business address during any license year, the wholesaler shall immediately so notify the board.
 

(5) Any wholesale motor vehicle auction dealer who changes a place of business or business address during any license year shall notify the board immediately of the dealer's new business address.
 

(6) (a) Except as specified in subsection (6)(d) of this section:

(I) A person holding an ownership interest in a licensed corporation, limited liability company, limited liability partnership, or other business entity shall not sell the interest to a person who does not already own an interest in the business entity until the owner applies to the board to be approved to hold an ownership interest in the business entity and the board approves the person to hold the interest.

(II) A licensed corporation, limited liability Company, limited liability partnership, or other business entity shall notify the board within ten days after a transfer, other than a sale, of any ownership that results in a new person holding an interest in the business entity. To continue to hold ownership in the business, the transferee shall apply to the board for approval to continue holding an ownership interest in the business entity.

(b) To be approved by the board to hold an ownership interest in a licensed business entity, the new owner must demonstrate the qualifications necessary for licensing, including a fingerprint-based criminal history record check, in accordance with this part 1. (c) (I) If the board does not approve a person to hold an ownership interest in a licensed business entity, the person shall transfer the interest within six months after acquiring the ownership interest.

(II) This subsection (6)(c) does not authorize a person to hold an interest in a licensed business entity when the person acquired the interest as the result of a sale that violates subsection (6)(a)(I) of this section.

(d) (I) This subsection (6) does not apply to the sale or transfer of an interest in a publicly traded company.

(II) This subsection (6) does not apply to the sale of an interest to an institutional investor of a business entity that is subject to the reporting requirements of the "Securities Exchange Act of 1934", 15 U.S.C. sec. 78a et seq., as amended. For the purposes of this subsection (6)(d) (II), "institutional investor" means an entity, such as a pension fund, endowment fund, insurance company, commercial bank, or mutual fund, that invests money on behalf of its members or clients and that is required by the United States securities and exchange commission to file a form 13F, or its successor form, to report quarterly holdings.

C.R.S. 44-20-418

(1) The board, through the executive director, shall not issue a powersports vehicle dealer's license or used powersports vehicle dealer's license to an applicant who has no principal place of business. If a powersports vehicle dealer or used powersports vehicle dealer changes the site or location of the dealer's principal place of business, the dealer shall immediately notify the board in writing, and thereupon, a new license shall be granted for the unexpired portion of the term of the existing license at a fee established pursuant to section 44-20-411. If a powersports vehicle dealer or used powersports vehicle dealer ceases to possess a principal place of business where the dealer conducts the business for which the dealer is licensed, the dealer shall immediately notify the board in writing and, upon demand by the board, shall deliver the dealer's license, which shall be held and retained until it appears to the board that the licensee possesses a principal place of business; whereupon, the dealer's license shall be reissued. Nothing in this part 4 shall be construed to prevent a powersports vehicle dealer or used powersports vehicle dealer from conducting the business for which the dealer is licensed at one or more sites or locations not contiguous to the dealer's principal place of business but operated and maintained in conjunction therewith.


(2) (a) If a powersports vehicle dealer changes to a new line-make of powersports vehicles, adds another franchise for the sale of new powersports vehicles, or cancels or otherwise loses a franchise for the sale of new powersports vehicles; the dealer shall immediately notify the board. If a franchise is canceled or lost, the board shall determine whether the dealer should be licensed as a used powersports vehicle dealer.
(b) If the powersports vehicle dealer no longer possesses a franchise to sell new powersports vehicles, the board shall cancel and the powersports vehicle dealer shall deliver to it the dealer's license, and the board shall direct the director to issue to the dealer a used powersports vehicle dealer's license.
(c) Upon the cancellation or loss of a franchise to sell new powersports vehicles and the relicensing of the dealer as a used powersports vehicle dealer, the dealer may continue in the business of a powersports vehicle dealer for a time, not exceeding six months after the relicensing of the dealer, to enable the dealer to dispose of the stock of new powersports vehicles on hand at the time of relicensing, but not otherwise.

(3) If a powersports vehicle salesperson is discharged, leaves an employer, or changes a place of employment, the powersports vehicle dealer who last employed the salesperson shall confiscate and return the salesperson's license to the board. Upon being reemployed as a powersports vehicle salesperson, the powersports vehicle salesperson shall notify the board. Upon receiving the notification, the board shall issue a new license for the unexpired portion of the returned license after collecting a fee set pursuant to section 44-20-411 (5). It shall be unlawful for the salesperson to act as a powersports vehicle salesperson until a new license is procured.

(4) Upon a change of place of business or business address, a wholesaler shall immediately notify the board of the change.

(5) (a) Except as specified in subsection (5)(d) of this section:


(I) A person holding an ownership interest in a licensed corporation, limited liability company, limited liability partnership, or other business entity shall not sell the interest to a person who does not already own an interest in the business entity until the owner applies to the board to be approved to hold an ownership interest in the business entity and the board approves the person to hold the interest.

 

(II) A licensed corporation, limited liability Company, limited liability partnership, or other business entity shall notify the board within ten days after a transfer, other than a sale, of any ownership that results in a new person holding an interest in the business entity. To continue to hold ownership in the business, the transferee shall apply to the board for approval to continue holding an ownership interest in the business entity.
 

(b) To be approved by the board to hold an ownership interest in a licensed business entity, the new owner must demonstrate the qualifications necessary for licensing, including a fingerprint-based criminal history record check, in accordance with this part 4.
 

(c) (I) If the board does not approve a person to hold an ownership interest in a licensed business entity, the person shall transfer the interest within six months after acquiring the ownership interest.
 

(II) This subsection (5)(c) does not authorize a person to hold an interest in a licensed business entity when the person acquired the interest as the result of a sale that violates subsection (5)(a)(I) of this section.
 

(d) (I) This subsection (5) does not apply to the sale or transfer of an interest in a publicly traded company.
 

(II) This subsection (5) does not apply to the sale of an interest to an institutional investor of a business entity that is subject to the reporting requirements of the "Securities Exchange Act of 1934", 15 U.S.C. sec. 78a et seq., as amended. For the purposes of this subsection (5)(d) (II), "institutional investor" means an entity, such as a pension fund, endowment fund, insurance company, commercial bank, or mutual fund, that invests money on behalf of its members or clients and that is required by the United States securities and exchange commission to file a form 13F, or its successor form, to report quarterly holdings.

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Adobe Acrobat Reader

  • To view or print any of the forms listed on this page, you will need a free copy of Adobe Acrobat Reader.

  • You can download a copy from the Auto Industry home page - Quick Links

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For additional information contact the Auto Industry Division at (303) 205-5604 or e-mail your question to: dor_dealers@state.co.us