Franchise System 101

THE VIRGINIA FRANCHISE SYSTEM

An Economic Engine with a Local Heart

A FRAMEWORK FOR COMPETITION

Virginia's franchised auto dealerships have been pillars of the economy for over 100 years. The franchise system was developed to solve a complex problem: efficiently delivering vehicles from manufacturing plants that are states or oceans away.

In the 1960s, the General Assembly established a regulatory framework to ensure Virginia consumers benefit from local competition rather than being beholden to the pricing of global monopolies.

41

Local Independence

Ensuring decisions are made by Virginia entrepreneurs,
not distant corporate boardrooms.

42

Consumer Advocacy

Guaranteeing every buyer has a local agent
to navigate service, safety, and warranty needs.

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Economic Stability

Keeping profits, payroll, and tax revenue
circulating withing the Commonwealth of Virginia.

32,447
Direct Jobs
Created
$27.47B
Total Sales
Generated
$2.5B
Annual
Payroll
$1.77B
State Tax
Contribution

THE RETAIL REALITY

Virginia's automobile dealers contribute 20% of all retail sales and taxes in the Commonwealth. A shift away from the Franchise Model would severely impact the state's tax base.

Protecting Consumers from
Monopoly Pricing

Competition Lowers Prices: When dealers compete, consumers win. A "Direct Sales" model eliminates competition, allowing manufacturers to set fixed prices.

Local Accountability: A franchise is a local business with legal recourse. Direct models leave drivers dealing with distant corporations.

Why Direct Models Fail

Infrastructure Gap: Manufacturers lack the infrastructure to service a mass market. Direct sellers often require shipping vehicles away for repairs.

We Keep You on the Road: Virginia's franchised dealers have invested billions in local facilities to ensure service is right around the corner.