Arkansas Franchise Laws
Arkansas does not require franchisors to register their Franchise Disclosure Document with a state agency before offering or selling franchises. But you still need to find Arkansas Franchise Attorneys to help you navigate things.
The federal regulations mandate that franchisors provide prospective franchisees with a detailed and legally compliant FDD within a specific timeframe before any franchise sale can be finalized.
However, Arkansas does have specific legislation governing the ongoing relationship between franchisors and franchisees, known as the Arkansas Franchise Practices Act (AFPA). This Act functions as a “relationship law,” offering certain protections and rights to franchisees operating within the state.
Furthermore, unlike the FTC Rule, which focuses on pre-sale disclosures, the AFPA addresses the conduct and obligations of both parties once a franchise agreement is already in place.
The AFPA includes important provisions for franchisees, especially concerning the termination, non-renewal, and transfer of franchise agreements.
For example, a franchisor generally needs a valid reason to terminate or not renew a franchise. Also, they must provide the franchisee with advance written notice, often including an opportunity to correct any alleged issues.
In addition, if a franchisor ends an agreement without good cause, they might be required to buy back inventory and equipment from the franchisee.
Finally, the Act also outlines procedures for franchise transfers, requiring franchisees to inform franchisors of their intent to sell and obliging franchisors to respond with approval or specific reasons for denial within a set period.
Here is a list of franchise lawyers you can find and hire in Arkansas
Kevin A. Crass
Friday, Eldredge & Clark, LLP
400 W Capitol Ave, Little Rock, AR 72201
David Lynn Williams
425 Capitol Avenue, Suite 1100
Little Rock, Arkansas
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Joel Libava, President.
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