Registration or Filing Required?

Business Opportunity Laws?

Arkansas is not a franchise registration state. Arkansas does not require franchisors to register their FDD with a state regulator before offering or selling a franchise in the state. Franchisors must  disclose a legally compliant FDD in accordance with the FTC Franchise Rule prior to offering or selling a franchise in Arkansas.

Arkansas regulates franchise relationships through the Arkansas Franchise Practices Act. The Arkansas Franchise Practices Act is comprised of franchise relationship laws that govern aspects of the franchisor-franchisee relationship including issues involving termination, cancellation and non-renewal of franchise relationships. Arkansas enacted franchise relationship laws that govern the relationship between franchisors and franchisees. These franchise relationship laws are known as the Arkansas Franchise Practices Act.  Under this Act, a franchise is defined as follows:

This Act creates exemption for traditional retail type businesses that lack a degree of control over the merchandising activities of the store and focuses on protecting franchisees and affording franchisees certain rights when it comes to the franchisor/franchisee relationship. Some of the areas where this act expands on the rights of franchisees include:

The Act creates private rights of action and remedies for material omissions, false and misleading information given during the franchise sales process. Franchisor liability may also exist in Arkansas if the franchisor terminates a franchise without good cause and such liability may extend to a franchisor’s obligation to repurchase a franchised outlet.