1. (a) A service-only facility is a location occupied and operated by a franchised dealer that is a completely separate, non-contiguous site, from the franchised dealer's new vehicle sales and service or sales only location, where the franchised dealer will only perform warranty and non-warranty repair services. Except as allowed in subsection (d) of this section, warranty repair services may only be performed at either a licensed dealership or a licensed service-only facility.
2. (b) A franchised dealer must obtain a license to operate a service-only facility. The dealer may not obtain a service-only facility license to service a particular line of new motor vehicles, unless the dealer is franchised and licensed to sell that line.
3. (c) A service-only facility is considered a dealership under Occupations Code, §2301.002(8), and is therefore subject to protest under Occupations Code, §2301.652.
4. (d) Upon the manufacturer's or distributor's prior written approval, which cannot be unreasonably withheld, only a franchised dealer of the manufacturer or distributor may contract with another person as a sub-contractor to perform warranty repair services the dealer is authorized to perform under a franchise agreement with a manufacturer or distributor. Payment shall be made by the franchised dealer to the sub-contractor and not by the manufacturer or distributor to the sub-contractor.
5. (e) A person with whom a franchised dealer contracts, as described in subsection (d) of this section, to perform warranty repair services is not eligible to obtain a service-only facility license and may not advertise to the public the performance of warranty repair services in any manner.

Source Note:The provisions of this §215.103 adopted to be effective February 11, 2010, 35 TexReg 883.