Subaru of America, Inc. v. Board of the Texas Department of Motor Vehicles; Daniel Avitia, in His Official Capacity as Executive Director of the Texas Department of Motor Vehicles; And McAllen Jeep, Inc. D/B/A Bert Ogden Subaru
Texas court ruling upholds Subaru's right to terminate franchise agreements, impacting dealer franchise protections.
Aforeworn detected this change in the Auto Dealer F&I Compliance space on July 8, 2026 and published this briefing so affected operators are forewarned rather than caught off guard. It is rated Medium urgency. Franchise dealers in Texas, especially Subaru dealers should confirm how it applies to their specific situation before acting. There is a time constraint attached: Ongoing; immediate review recommended before any manufacturer actions.. Acting after that point can mean penalties, a lapsed licence, or lost eligibility — exactly the kind of surprise Aforeworn exists to prevent. Aforeworn monitors Auto Dealer F&I Compliance continuously and turns every detected change into a plain-English briefing like this one, so you always know first. Forewarned is forearmed.
What changed
Court affirmed automaker's ability to terminate franchise agreements without cause, weakening dealer protections under Texas law.
Who it affects
Franchise dealers in Texas, especially Subaru dealers
What you must do
Review franchise agreements and assess termination risk; consult legal counsel on contract terms and state-specific protections.
Deadline
Ongoing; immediate review recommended before any manufacturer actions.
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