To open a franchised motor vehicle dealership in Florida, you'll need to secure a franchise agreement with a vehicle manufacturer, which grants you the right to sell new vehicles and outlines your obligations. Next, you'll meet pre-licensing requirements, such as obtaining a Federal Employer Identification Number and completing electronic fingerprinting. You'll also need to choose a business location that complies with local zoning regulations and obtain necessary licenses, including a Florida Franchised Motor Vehicle Dealer Bond. By following these steps, you'll be well on your way to establishing a successful dealership, and further guidance will help you navigate the process.

Summary

• Research and select a vehicle manufacturer, and secure a franchise agreement to obtain the rights to sell new vehicles in Florida.

• Meet pre-licensing requirements, including obtaining a FEIN, sales tax number, and electronic fingerprinting for all business officers.

• Choose a business location that meets local zoning regulations, with a minimum of 100 square feet of office space for operations.

• Obtain necessary licenses, including a Florida Franchised Motor Vehicle Dealer Bond, and complete an 8-hour pre-licensing training course.

• Submit an application with required documentation, including the bond, and a $300 application fee to the Florida Department of Highway Safety and Motor Vehicles.

Secure a Franchise Agreement

Securing a single franchise agreement is the first step in establishing a franchised motor vehicle dealership in Florida. You'll need to research and select a vehicle manufacturer that aligns with your business goals and market demands.

The franchise agreement will grant you the legal rights to sell the manufacturer's new vehicles and outline the terms of sales, dealership obligations, marketing support, and any financial commitments required to maintain the franchise.

As a prospective franchised dealer, you'll need to demonstrate your financial capability and operational plans to the manufacturer. This may include providing financial statements, business plans, and market research.

It's essential to carefully review the franchise agreement to guarantee you understand your obligations and the manufacturer's expectations.

Once you've secured the franchise agreement, you'll be able to apply for the Franchised Motor Vehicle Dealer License through the Florida Department of Highway Safety and Motor Vehicles (DHSMV).

The franchise agreement is a critical component of the licensing process, and the DHSMV will require proof of the agreement as part of your license application.

Meet Pre-Licensing Requirements

To avoid delays in the licensing process, confirm you meet the pre-licensing requirements set by the Florida Department of Highway Safety and Motor Vehicles (DHSMV).

As a prospective franchised motor vehicle dealer in Florida, you must ascertain your dealership site is approved by the Division of Motorist Services Regional Office. This involves a compliance examination of the location to verify it meets local zoning and business regulations.

Before submitting your license application, obtain a Federal Employer Identification Number (EIN) from the IRS and a sales tax number from the Florida Department of Revenue.

Additionally, all business officers must undergo electronic fingerprinting through approved livescan providers as part of the background check process. Your dealership must also have a minimum of 100 square feet of office space dedicated to business operations, equipped for record-keeping and documentation.

Choose a Business Location

Selecting a suitable location is an essential step in establishing a franchised motor vehicle dealership in Florida. You must choose a business location that complies with local zoning regulations and receives approval from the Division of Motorist Services Regional Office.

Your licensed dealership requires a minimum office space of 100 square feet to accommodate record-keeping and administrative tasks. Guarantee the site provides adequate display and parking areas for your vehicles, adhering to specific space requirements set by local authorities.

A physical business address is mandatory; residential addresses aren't permitted for dealership licensing. You must provide documentation of the lease or property ownership as part of your licensing application to verify your business location.

This documentation is vital in obtaining approval for your dealership. By carefully selecting a location that meets these requirements, you can establish a successful and compliant licensed dealership in Florida. Local zoning regulations and a valid business address are key to obtaining a dealership license.

Get Your Florida Franchised Motor Vehicle Dealer Bond

Securing a Florida Franchised Motor Vehicle Dealer Bond is a crucial step in obtaining the necessary licenses to operate a dealership in Florida.

You'll need to obtain a $25,000 Florida Dealer Bond, which serves as a surety bond to protect consumers and guarantee compliance with state regulations. The cost of obtaining the dealer bond typically ranges from 1-15% of the total amount, amounting to a one-time payment between $250 and $3,750.

To get your Florida Franchised Motor Vehicle Dealer Bond, you'll need to complete the required 8-hour pre-licensing training course, specifically designed for Franchised Dealer licenses. This course will help you understand the operational and legal aspects of running a dealership.

Once you've completed the training, submit your application, including the original Florida Independent Motor Vehicle Dealer Bond, along with the $300 application fee, to the Florida Highway Safety and Motor Vehicles (FLHSMV) for approval.

Confirm that all documentation, including proof of location and training certificates, is submitted with your application. By securing your Florida Dealer Bond, you'll be one step closer to obtaining your Franchised Dealer License and operating a successful dealership in Florida.

Comply With Zoning Regulations

While identifying a prime location for your franchised motor vehicle dealership is vital, it's equally important to confirm that the site complies with local zoning regulations. You must verify that your dealership site meets the specific requirements set forth by local ordinances, which may dictate the type of business operations allowed in specific areas.

Contact your county's Motorist Services Regional Office to check zoning compliance and obtain necessary approvals for your dealership site.

Your dealership site must have adequate space for vehicle display and parking, typically requiring a minimum of 100 square feet of office area for business operations. Local zoning ordinances may also impose restrictions on signage, operating hours, and facility design, so it's essential to review these regulations prior to site selection.

Failure to comply with local zoning laws can lead to delays in the licensing process or even denial of your dealership application. By carefully researching and adhering to zoning regulations, you can avoid costly mistakes and guarantee a smooth licensing process.

Prepare for Business Operations

With your dealership location secured and zoning regulations met, it's time to prepare for business operations.

You'll need to obtain necessary documentation, such as a business registration, lease agreement, insurance coverage, and an original Florida Independent Motor Vehicle Dealer Bond. Additionally, you'll need to secure an Employer Identification Number (EIN) from the IRS and a sales tax number from the Florida Department of Revenue to facilitate tax collection and reporting.

Develop an operational plan that outlines inventory management, staffing strategies, and marketing initiatives to effectively launch and sustain your business. This plan will serve as a roadmap for your dealership's success.

You'll also need to complete an 8-hour pre-licensing training course and obtain a certificate of completion, which is required for your franchised dealer license.

Verify you have all necessary documentation in place, as this will be essential in the next steps of the licensing process. By thoroughly preparing for business operations, you'll set your dealership up for success and be well on your way to securing your license.

Submit Application and Fees

Your application for a franchised motor vehicle dealership license is a critical step in the licensing process. To submit your application, you'll need to complete the Florida Dealer License application, making certain to check the "Franchised Motor Vehicle Dealer" box on the form.

Along with your application, you'll need to include the original Florida Franchised Motor Vehicle Dealer Bond, a $25,000 surety bond required for licensing. The total application fee of $300 must be paid upon submission to the Florida Department of Highway Safety and Motor Vehicles (FLHSMV).

As you prepare to submit your application and fees, verify that all required documentation is in order, including proof of location and training completion.

Double-check that you've met all the necessary requirements to avoid delays in the application process. Once you've submitted your application and fees, the FLHSMV will review your application and verify the information provided.

After approval, you'll be able to proceed with setting up your dealership. It's essential to carefully review the application requirements and follow the submission process to guarantee a smooth and successful licensing experience.

Frequently Asked Questions

How Much Is a Car Dealer License in Florida?

You'll pay a $300 license fee for a Franchised Motor Vehicle Dealer License in Florida, and you'll also need a $25,000 Florida Dealer Bond, which costs between $250 and $3,750, depending on the bonding company.

How to Start a Car Dealership in Florida?

You're launching a new venture, building a car dealership from scratch; as you start a car dealership in Florida, you'll need to secure a location, obtain necessary licenses, and complete an 8-hour pre-licensing course for franchised dealers.

How Many Cars Can I Sell in Florida Without a Dealer's License?

In Florida, you can sell up to 5 cars without a dealer's license, but selling more than 5 cars within 12 months puts you at risk of noncompliance, so be certain to follow state regulations correctly.

What Is a VF License in Florida?

In Florida, a VF License is a Franchised Motor Vehicle Dealer License that lets you sell new and used vehicles under a manufacturer's agreement; you'll need to complete a pre-licensing course and pay a $300 license fee annually.