Dallas County Automobile Dealers Association

Dealer Location Licensing Requirements
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Source Note: The provisions of this 111.10 adopted to be effective November 15, 1995, 20 TexReg 9006; amended to be effective March 31, 1996, 21 TexReg 1091; amended to be effective August 17, 1999, 24 TexReg 6290

 

All dealers must meet the following requirements at each location where vehicles are sold or offered for sale.

  (1) Office requirements.

 

    (A) A dealer's office facility must be open to the public during normal working hours. Normal working hours are defined as at least four days per week for a continuous period of time not less than four hours per day between the hours of 8:00 A.M. and 8:00 P.M. The dealer's business hours for each day of the week must be posted at the main entrance of the dealer's office, and the owner or a bona fide employee of the dealer must be at the dealer's location during the posted business hours for the purpose of buying, selling, exchanging, or leasing vehicles. In the event the owner or a bona fide employee is not available to conduct business during the dealer's posted business hours, a separate sign must be posted indicating the date and time such owner or a bona fide employee will resume dealer operations. In addition, such dealership must notify the division in writing of any subsequent change in the dealer's standard business hours.

 

    (B) With the exception of dealers holding only a wholesale license, no more than four retail dealers may be located in a business or residential structure. A structure is a stand-alone building, has its own exterior walls on all sides, and has been assigned a separate mailing address by the United States Postal Service. The structure must be of sufficient size to accommodate the usual office furniture and equipment, such as a desk, file cabinet, chairs, etc. As a minimum, the office must be equipped with a desk and chairs from which the dealer transacts his business and be equipped with a separate working telephone instrument, number, and listing in the dealer's name with a fixed, land-based telephone company, answered from 8:00 a.m. to 5:00 p.m. weekdays by a bona fide employee, or an answering service or machine. If a dealer's office is located in a residential structure, the office must be completely separated from and have no direct access into the residential quarters and be in compliance with all applicable local zoning ordinances and deed restrictions. Such an office shall not be used as a part of the living quarters and must be readily accessible to the public without having to pass into or through any part of the living quarters.

 

    (C) Portable-type office structures may qualify, provided they meet the minimum requirements as set forth herein.

 

    (D) If a dealer conducts business in conjunction with another business owned by the same person, the same telephone instrument may be used for both businesses. However, if the name of the dealer differs from that of the other business, a separate telephone listing and a separate sign for the dealer is required.

 

    (E) A dealer may conduct business in conjunction with another business not owned by the same person, however, the same telephone number may not be used by both businesses; the dealer shall have a separate sign, a separate desk, a separate working telephone instrument, and a separate telephone number and listing in the name of the dealer. The dealer must either own the property or have a separate lease agreement from the owner meeting the requirements of paragraph (4) of this section.

 

    (F) Unless otherwise authorized by the Transportation Code, wholesale motor vehicle dealerships established after September 1, 1999, may not occupy the same structure as retail dealers. More than one, but no more than eight dealers who hold only a wholesale license may occupy the same business structure and conduct their respective dealer operations under different names, as long as no retail dealers are located in the same structure; provided, however, each wholesale dealer must, in addition to having a qualifying dealer's sign conspicuously displayed on the premises, have:

 

      (i) a separate desk from which that dealer transacts business;

 

      (ii) a separate working telephone instrument, number, and listing in the dealer's name with a fixed, land-based telephone company, and,

 

      (iii) a separate lease agreement meeting the requirements of paragraph (4) of this section.

 

    (G) Dealers who hold only a wholesale license will not be required to be present during normal working hours if they keep on file with the Motor Vehicle Division, notice of a designated period of time in which the dealer and the dealer's records will be available for inspection by the Motor Vehicle Division at the dealer's licensed location. The period of time will be no less than two consecutive hours, between the hours of 8:00 a.m. and 5:00 p.m., on any one day of the week, except Saturday or Sunday.

 

  (2) Sign requirements.

 

    (A) A dealer shall display a conspicuous sign with letters at least six inches in height showing the name under which the dealer conducts business. Variance of the six-inch lettering size requirement may be considered upon a showing by the applicant dealer of local zoning requirements limiting lettering size to less than six inches.

 

    (B) Such sign must be readable from the address listed on the application for the dealer license.

 

  (3) Display space requirements.

 

    (A) A dealer other than a wholesale dealer shall have an off-street display area sufficient to display at least five vehicles of the type for which the general distinguishing number was issued.

 

    (B) The display area may not be on a public easement, right-of-way, or driveway, unless the governing body having jurisdiction of the easement, right-of-way, or driveway expressly consents to such use; provided, however, that if the easement, right-of-way, or driveway is a part of the state highway system, such use may only be authorized by a lease agreement entered under the Transportation Code, ?202.052. Such area shall be located at the dealer's address or contiguous with the dealer's address. The display area must be owned or leased for the exclusive use by the dealer for a continuous term of not less than one year. If the display area is in conjunction with other parking facilities, such area shall be separated by use of barriers under the control of the dealer so as to prevent its use for any purpose other than a display area. Subject to approval by the Board, the display area may be located within a building. If multiple retail dealers occupy contiguous locations or are located in the same structure, each dealer must group its vehicles on display in the same area, marking the area and/or vehicles to identify the selling dealer.

 

  (4) Lease requirements. If the premises from which a dealer conducts business is not owned by the licensed dealer, such dealer shall maintain a lease continuous for a period of one year, and such lease agreement shall be on a properly executed form containing, but not limited to, the following information:

 

    (A) the names of the lessor and lessee;

 

    (B) the legal description of the property or street address; and

 

    (C) the period of time for which the lease is valid.

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