State Franchise Dealership Law
In New York, Wide World BMW in Spring Valley has filed a case against the automaker over a dispute about warranty labor reimbursement rates. The dealership is suing BMW for violating the state franchise dealership law.
According to the suit, BMW wrongfully refused to accept the dealer’s standardized system for warranty work. Meanwhile, BMW insists that the dealer uses its own warranty guide or another “recognized labor time guide provider.” The dealer filed the complaint on September 1, 2026. On the dealer’s end, it uses CDK Global’s ServicePricing system, but BMW cited other service providers like Chilton, Mitchell, or All Data. The thing is, Wide World uses CDK Global for all nonwarranty and customer-pay operations at its other dealerships under different brands.
Brandon Bell/Getty Images
“Reasonable Compensation”
According to the suit, Wide World uses the CDK guide for its BMW and “every other manufacturer that Wide World does business with in New York.” The dealership group contends that it is in the right because New York dealer law entitles franchised dealerships to “reasonable compensation as measured by the retail labor time guide the dealer uses for non-warranty customer-paid operations.”
However, in November 2024, BMW insisted that Wide World BMW use the brand’s own time guide system, or recognized alternatives. These systems pay lower rates than what the store charges customers, but the complaint did not provide the differences between BMW’s solutions and Wide World’s system.
“Less Than Reasonable Compensation”
Automotive News reported that “applying BMW’s time guide results in the store being compensated for warranty, recall, and diagnostic labor at less than the ‘reasonable compensation’ mandated by a 2024 amendment to the law.”
Wide World contends that if it applied BMW’s system, or any of its recommended alternatives, the store would end up with less than what the dealer should get under the state’s franchise law. “The shortfall accrues with every warranty repair Wide World performs,” the complaint said.
The dealership seeks damages from BMW, the amount being the difference between BMW’s warranty compensation and the “reasonable compensation required” under the state’s franchise laws, plus interest and attorney fees.
Investigating further, Automotive News tried to reach out to the dealership’s lawyer with no response. Reaching out to the brand, BMW’s spokesman, Phil DiIanni, said: “As a rule, we do not comment on open litigation.”
