The following are just a few sections of the relevant Arkansas statutory law - The listed sections are for illustration purposes only and are not complete

 

TITLE 4.  BUSINESS AND COMMERCIAL LAW  
SUBTITLE 6.  BUSINESS PRACTICES  
CHAPTER 72.  FRANCHISES  
SUBCHAPTER 2.  ARKANSAS FRANCHISE PRACTICES ACT

A.C.A. § 4-72-204  (2006)

§ 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 or distribute goods or services within an exclusive or nonexclusive territory at wholesale or retail, by lease agreement, or otherwise.

      (B) However, a franchise is not created by a lease, license, or concession granted by a retailer to sell goods or furnish services on or from premises which are occupied by the retailer-grantor primarily for its own merchandising activities and a franchise is not created by door-to-door sales complying with § 4-89-101 et seq.;
   . . . .
 

   (7) "Good cause" means:

      (A) Failure by a franchisee to comply substantially with the requirements imposed upon him or her by the franchisor, or sought to be imposed by the franchisor, which requirements are not discriminatory as compared with the requirements imposed on other similarly situated franchisees, either by their terms or in the manner of their enforcement; or

      (B) The failure by the franchisee to act in good faith and in a commercially reasonable manner in carrying out the terms of the franchise; . . . .

   (8) "Good faith" means honesty in fact in the conduct or transaction concerned.

§ 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 are not arbitrary or capricious.
 

(b) No franchisor shall directly or indirectly terminate, cancel, or fail to renew a franchise without first giving written notice to the franchisee at least ninety (90) days in advance of such action, setting forth the reasons for the termination, cancellation, or intention not to renew, and, in the case of terminations, shall provide the franchisee with thirty (30) days in which to rectify any claimed deficiency.
. . . .

 

§ 4-72-206. Unlawful practices of franchisors
 

   It shall be a violation of this subchapter for any franchisor, through any 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 any person from liability imposed by this subchapter;

   (2) To prohibit directly or indirectly the right of free association among franchisees for any lawful purpose;
. . . .

 

§ 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 in order to make the statements made, in light of the circumstances under which they are made, not misleading; or

   (3) Engage in any act, practice, or course of business which operates or would operate as a fraud or deceit upon any person.

(b) Any violation of this section shall be a Class B felony.

(c) Prosecutions for offenses committed in violation of this section must be commenced within five (5) years from the date of the crime or within five (5) years from the date of the commission of the last overt act in furtherance of the scheme to defraud.