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From your perspective as a Dealer Principal, is there a downside to this requirement? Obviously you don't want your GM to sign an agreement with the factory that's detrimental to your store, but then again if you've selected the right person and clearly defined their authority that shouldn't be an issue.
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All checks or agreements have to more than one signature (principal included).
The G.M. is in essence the "go to guy" on the front line of communication between HMA/KMA and the dealer.