§ 4-72-201. Title

This subchapter shall be known and may be cited as the “Arkansas Franchise Practices Act”.

§ 4-72-202. Definitions

As used in this subchapter, unless the context otherwise requires: (1) (A) “Franchise” means a written or oral agreement for a definite or indefinite period in which a person grants to another person a license to use a trade name, trademark, service mark, or related characteristic within an exclusive or nonexclusive territory or to sell […]

§ 4-72-203. Applicability of subchapter

This subchapter applies only to a franchise entered into, renewed, or transferred after March 4, 1977, the performance of which contemplates or requires the franchise to establish or maintain a place of business within the State of Arkansas. However, the provisions of this subchapter shall not apply to those business relations, actions, transactions, or franchises […]

§ 4-72-204. Termination, cancellation, or failure to renew

(a) It shall be a violation of this subchapter for a franchisor to: (1) Terminate or cancel a franchise without good cause; or (2) Fail to renew a franchise except for good cause or except in accordance with the current policies, practices, and standards established by the franchisor which in their establishment, operation, or application […]

§ 4-72-205. Transfer, assignment, or sale of franchise

(a) It shall be a violation of this subchapter for any franchisee to transfer, assign, or sell a franchise or interest therein to another person unless the franchisee first notifies the franchisor of that intention by written notice, setting forth in the notice of intent the prospective transferee’s name, address, statement of financial qualification, and […]

§ 4-72-206. Unlawful practices of franchisors

(a) It is a violation of this subchapter for a franchisor, through an officer, agent, or employee to engage directly or indirectly in any of the following practices: (1) To require a franchisee at the time of entering into a franchise arrangement to assent to a release, assignment, novation, waiver, or estoppel which would relieve […]

§ 4-72-207. Misleading and fraudulent schemes — Penalty — Prosecutions

(a) It shall be unlawful for any person, directly or indirectly, in connection with the offer, sale, purchase, transfer, or assignment of any franchise in this state to knowingly: (1) Employ any device, scheme, or artifice to defraud; (2) Make any untrue statement of a material fact or omit to state a material fact necessary […]

§ 4-72-208. Franchisee’s remedies

(a) Any franchisee who is harmed by a violation or violations of § 4-72-207 shall be entitled to recover treble damages in a civil action and, where appropriate, obtain injunctive relief in addition to reasonable attorney’s fees and costs of litigation. (b) Any franchisee who is harmed by a violation of any other section of […]

§ 4-72-209. Franchisee’s right of repurchase

Upon termination of any franchise by a franchisor without good cause, the franchisor shall, at the franchisee’s option, repurchase at franchisee’s net cost, less a reasonable allowance for depreciation or obsolescence, the franchisee’s inventory, supplies, equipment, and furnishings purchased by the franchisee from the franchisor or its approved sources; however, no compensation shall be allowed […]

§ 4-72-210. Immunity granted those furnishing information

No liability on the part of, and no cause of action of any nature other than as provided by this subchapter, shall arise against any franchisor, its officers, agents, or employees furnishing information as to reasons for termination, cancellation, intent not to renew, failure to renew, refusal to do business, or substantial change in competitive […]