Arkansas does not have franchise or business opportunity laws. However, a franchisor must still comply with the federal regulations established under the Federal Trade Commission (“FTC”) Franchise Rule when offering and selling franchises in the state of Arkansas.
Arkansas is a non-registration state, which does not require any type of franchise filing or registration for a franchisor to offer or sell franchises in Arkansas.
A franchisor must have a current FTC compliant FDD to offer or sell franchises in Arkansas and comply with the Franchise Rule disclosure timing provisions.
Arkansas’ Franchise Practices Act prohibits franchisors from terminating or failing to renew a franchise without good cause. In addition, except in certain situations, franchisors must give franchisees 90 days notice prior to termination and a 30-day notice to cure, regardless of the terms stated in the Franchise Agreement. ACA 4-72-204. If a franchisor terminates a franchisee without good cause, the franchisee can require the franchisor to repurchase supplies and equipment the franchisee purchased from the franchisor or its distributors. ACA 4-72-209.
Want to learn more about our franchise services and franchising in Arkansas? Contact Us or call (757)-263-4596 to schedule a consultation. You can also visit our interactive map to learn more about other state franchise laws.