Anderson Economic Group Work

Market and Franchise Law Analysis: Michigan Honda Dealerships

The attorneys representing three franchised dealers of American Honda in Michigan retained Anderson Economic Group after American Honda appointed a new dealer within the primary market areas of their clients. Anderson Economic Group was tasked with evaluating the effects of the new dealer on the existing dealer’s sales, service, and other revenues, as well as the impact on profitability and market value.

We completed an expert report that began with an evaluation of the fundamental ratio­nale of the franchise relationship, and the responsibilities of both parties. The report continued with a detailed analysis of sales data, the pattern of sales as distance from the retail outlet increases, the geographic and demographic characteristics of the changed market areas, and the likely effect of the new dealer on the sales of the existing dealer. We then completed a valuation and damages estimate that translated the lost sales into tangible figures for the court. Patrick Anderson and Victor Wrotslavsky were deposed on the contents of the report.