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AR HB2187
Bill
Status
5/17/2013
Primary Sponsor
Dan Douglas
Click for details
AI Summary
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Allows retail liquor permit holders to enter into franchise contracts using a franchisor's trade name, trademark, or service mark while maintaining the existing prohibition on ownership of multiple permits
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Defines "franchise contract" as a written agreement granting a license to use a trade name, trademark, or service mark within exclusive or nonexclusive territory to provide services and goods with no alcohol content
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Creates a new seventh type of permit called a "franchise permit" that requires prior written approval from the Alcoholic Beverage Control Division and is limited to retail locations in Benton, Pulaski, Sebastian, or Washington counties
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Permits reasonable indirect financial benefits from franchise arrangements if provided under approved franchise contracts, subject to division review that the contract meets statutory requirements and does not grant ownership interest in multiple permits
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Repeals prior prohibitions (effective March 1, 2011) against permit holders receiving remuneration related to branding or operation of other establishments, and declares the act an emergency effective immediately upon Governor approval
Legislative Description
To Create A Franchise Permit For Certain Retail Liquor Permit Holders; To Provide That Franchise Agreements Be Permitted Under Certain Circumstances; And To Declare An Emergency.
Last Action
Died in House Committee at Sine Die adjournment.
5/17/2013