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Bill

A 4992

Requires franchise agreement for sale of all-terrain vehicles and certain watercraft.

2026-2027 Regular Session Introduced by Alex Sauickie

Requires manufacturers to establish formal franchise agreements with dealers to sell ATVs and certain watercraft in New Jersey.

Introduced, Referred to Assembly Consumer Affairs Committee
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Bill Summary · A 4992

Summary of New Jersey Assembly Bill A-4992 (Session 222)

Title

Requires franchise agreement for sale of all-terrain vehicles and certain watercraft.

Purpose and intent

This bill appears to regulate the sale of certain motorized recreational products by establishing a franchise agreement requirement between manufacturers and dealers for the sale of all-terrain vehicles (ATVs) and specific watercraft. The overarching aim is to formalize distribution relationships through a franchise framework, potentially affecting how ATVs and eligible watercraft are marketed, sold, and serviced within the state.

Key provisions and changes (highlights)

  • Franchise agreement requirement: The bill mandates a formal franchise agreement as a condition for the sale of ATVs and designated watercraft. This implies that manufacturers would need to establish and enter into written contracts with dealers to authorize the sale of these products.

  • Scope of products covered:

    • All-terrain vehicles (ATVs).
    • Certain watercraft (as defined by the bill). The summary does not specify model-year or horsepower thresholds, so the exact subset of watercraft would be determined by the bill’s statutory language or any referenced definitions.

  • Relationship framework:

    • The franchise relationship would likely set forth terms governing purchase rights, sale territories, pricing, marketing, training, inventory requirements, service obligations, and post-sale support, consistent with typical franchise structures.
    • Potential protections or obligations for both manufacturers (franchisors) and dealers (franchisees) may be established to ensure a stable distribution network.

  • Compliance and enforcement:

    • The bill would delineate compliance requirements for parties entering into franchise agreements and outline remedies for breaches. This could involve regulatory oversight by relevant state agencies and potential penalties for noncompliance.

  • Dealer and market impact considerations:

    • The law could affect the availability of ATVs and certain watercraft by shaping how products are distributed and maintained in New Jersey.
    • It may influence dealer eligibility, capital requirements, and ongoing franchise fees or renewal conditions.

Who would be affected

  • Manufacturers of ATVs and covered watercraft: Required to establish and maintain franchise agreements with authorized dealers in New Jersey to sell these products.

  • Dealers/Franchisees: Authorized or prospective dealers would operate under formal franchise agreements, with duties related to inventory, customer service, marketing, and compliance with franchise terms.

  • Consumers: End-users purchasing ATVs and the specified watercraft may experience changes in product availability, pricing, and after-sales service depending on how the franchise network operates under the new framework.

  • State regulatory environment: Possible involvement of a state agency governing commercial practices, franchise disclosure, or consumer protection, with potential enforcement powers and penalties for violations.

Procedural and timeline aspects

  • Legislative status: The bill is identified as A-4992, sponsored in part by Alex Sauickie as a co-sponsor. Details on committee referrals, amendments, and final passage dates would determine its progress and effective date.

  • Implementation timeline:

    • If enacted, the bill would typically specify an effective date or phase-in period for the franchise requirements.
    • There may be transitional provisions to allow existing dealer arrangements to convert to franchise agreements within a defined timeframe.

Notes and considerations

  • The summary above reflects the bill’s stated objective to require franchise agreements for the sale of ATVs and certain watercraft. Specific definitions, exclusions, and operational details (e.g., renewal terms, termination rights, arbitration, or consumer protections) would be contained in the bill’s text and any accompanying fiscal notes or analyses.

  • For a complete understanding, readers should review the full bill language, any amendments adopted in committee, and the fiscal impact statement, if available.

Compiled from official sources — confirm details with the bill’s official record.

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