Automotive dealerships generally have large lots to display the vehicles currently in their inventory. The real estate required can be quite costly, particularly when factoring in property taxes in areas with high property values.
Especially in cases where local property values have shifted substantially, those running dealerships may want to relocate to bigger facilities or locations in areas with lower total costs. Finding a property ripe for development or with facilities already in place can be an excellent opportunity for those operating auto dealerships in California.
Unfortunately, moving a dealership could result in a relocation protest and major legal complications.
Dealerships may have protected areas
Especially in scenarios where an auto dealership is a franchise operation partnering with one or more major manufacturers, relocations require careful planning and potentially pre-approval from franchisors. A location that seems ideal may actually be too close to the protected territory of another franchisee. The relocating professional could then face legal challenges.
Other times, proximity to an existing dealership could lead to pushback from an established business that does not want competition in its backyard. Additionally, members of the local community may worry about how increased traffic caused by the dealership might affect their lives and property values. Multiple outside parties may take issue with a proposed dealership relocation,
Successful auto dealership owners and sales professionals seeking to relocate or strike out on their own may need assistance to avoid legal controversy and failed relocation attempts. Reviewing existing contracts and a possible new location for the dealership facilities with a legal professional can help prevent relocation protests.