FAQ/Fact Sheet


How many franchised auto dealers are in Texas?

There are over 1,400 new car and truck dealerships in Texas in 289 cities and towns.

Who depends on franchised auto dealers?

  • Consumers who need safe transportation, competitive pricing, quality service and repairs.
  • The State of Texas which receives more than $3.5 billion in taxes and fees collected by the dealerships (essentially serving as a collector).  An additional billion dollars is paid by dealerships for property, franchise, sales and payroll taxes.
  • Dealership employees, all 100,550 of them.
  • Business partners who get business from auto dealers for work such as advertising, legal counsel, banking, insurance and more.
  • Local communities who not only have convenient access to their nearby dealership, but also benefit from the financial and volunteer support by the Texas new car and truck dealers.

Why do franchise laws exist?

Franchise laws exist to prevent monopolies and promote competition in vehicle pricing and service to the consumer, provide for the efficient distribution of vehicles and service across the wide geographic area that is our state, and provide a local presence where Texas consumers can have service, warranty, and recall work performed even in cases when a manufacturer ceases to do business.  

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