NOTICE OF TERMINATION OF FRANCHISES

SB 194 requires suppliers (manufacturers, wholesalers, or distributors of farm tractors, construction equipment, or related parts) to provide dealers (businesses selling that equipment) with specific notice before terminating a franchise agreement. It mandates 180 days' written notice for most terminations, detailing all "good cause" reasons and granting dealers 60 days to fix issues before termination. For terminations based on failure to meet performance standards, suppliers must provide a 2-year notice period. The bill also requires suppliers to approve or deny dealer business transfer requests within 60 days or deem the request approved, with clear written justification for denials. This directly affects dealers in New Mexico's farm and construction equipment sectors by strengthening their notice and appeal rights.