Pub. 1 Issue 2

29 SUMMER 2013 M any of them include incentives designed to lessen some of the cost of compliance with these expensive upgrades. But in the end they still end up being a very expensive additional investment with little or no return on investment in terms of sales, profitability or resale value. Patrick L. Anderson, Principal & CEO of An- derson Economic Group, and an expert witness used in many such dealer-manufacturer disputes, has evaluated dealership sales performance and expansion plans in dozens of states. He has ob- served a “mixed record” of facility improvements generating improved sales and service revenue. “In general, lavish facility improvement plans rarely achieve a positive return on investment for a dealer, if the facility already meets minimum stan- Carrots and Sticks Facility Improvements and Other Factory Demands BY ALTON BURKHALTER , SENIOR TRIAL LAWYER, BURKHALTER KESSLER CLEMENT & GEORGE LLP With the economy steadily improving you may have already begun to see or hear of your Manufacturer’s latest facility improvement program.  Carrots and Sticks — continued on page 30