HB1783 Summary

• Clarifies that the Arkansas Franchise Practices Act applies to franchise agreements entered into, renewed, or transferred after March 4, 1977, where the franchise operates or maintains a place of business in Arkansas, unless expressly excluded or exempted.

• Adds "franchise owner" to definitions as a person who owns a financial interest in a franchise or has guaranteed franchise obligations.

• Reduces franchisor approval timeline for franchise transfers from 60 days to 30 days, and exempts transfers to spouse, child, or heir of franchisee from requiring franchisor approval if operationally and financially qualified.

• Voids any franchise agreement provision restricting venue to outside Arkansas for claims arising from franchises operating in the state, and requires franchisors to terminate agreements only for material cause using objective standards.

• Applies clarifying provisions (Sections 1 and 3) retroactively to Acts 1991, No. 411, while new substantive provisions (Sections 2, 4, and 5) apply only to franchise agreements entered into or renewed after the act's effective date.