What constitutes a “franchise dealer” in Colorado?

A franchise dealer in Colorado is defined as a dealer who has a contractual agreement with a manufacturer to sell specific vehicles. This relationship involves a formal agreement that outlines the rights and responsibilities of both the manufacturer and the dealer, ensuring that the dealer is authorized to sell the manufacturer's vehicles. This requirement is critical as it creates a recognized partnership where the dealer receives support and resources from the manufacturer, which can include marketing assistance, product training, and warranty services.

The essence of being a franchise dealer lies in this contractual agreement, as it provides the dealer with the legitimacy and authorizes them to represent the manufacturer's brand. This structured relationship stands in contrast to other types of dealerships that may operate without any affiliation to particular manufacturers, such as those that only sell used cars or who sell vehicles without agreements with manufacturers. Thus, the correct definition captures the necessary link between the dealer and the manufacturer, highlighting the importance of contractual obligations in the dealership's operations.