Arkansas § 11-2-125 Relationship between franchisee and franchisor - Definitions

Arkansas Statutes

§ 11-2-125 — Relationship between franchisee and franchisor - Definitions

Arkansas § 11-2-125

Title11

This text of Arkansas § 11-2-125 (Relationship between franchisee and franchisor - Definitions) is published on Counsel Stack Legal Research, covering Arkansas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook

Ark. Code Ann. § 11-2-125 (2026).

Text

(a)As used in this section:

(1)"Franchise" means a continuing commercial relationship or arrangement in which the terms of the offer or contract specify or the franchise seller promises or represents, orally or in writing, that:

(A)The franchisee shall obtain the right to operate a business that is identified or associated with the franchisor's trademark, or to offer, sell, or distribute goods, services, or commodities that are identified or associated with the franchisor's trademark;

(B)The franchisor will exert or has authority to exert a significant degree of control over the franchisee's method of operation, or provide significant assistance in the franchisee's method of operation; and (C) As a condition of obtaining or commencing operation of the franchise, the franchisee makes a

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(a) As used in this section: (1) "Franchise" means a continuing commercial relationship or arrangement in which the terms of the offer or contract specify or the franchise seller promises or represents, orally or in writing, that: (A) The franchisee shall obtain the right to operate a business that is identified or associated with the franchisor's trademark, or to offer, sell, or distribute goods, services, or commodities that are identified or associated with the franchisor's trademark; (B) The franchisor will exert or has authority to exert a significant degree of control over the franchisee's method of operation, or provide significant assistance in the franchisee's method of operation; and (C) As a condition of obtaining or commencing operation of the franchise, the franchisee makes a required payment or commits to make a required payment to the franchisor or its affiliate; (2) "Franchisee" means a person that is granted a franchise; (3) "Franchisor" means a person that grants a franchise and participates in the franchise relationship; and (4) "Subfranchisor" means a person that functions as a franchisor by engaging in both presale activities and postsale performance. (b) Notwithstanding a voluntary agreement entered into between the United States Department of Labor and a franchisee, neither a franchisee nor a franchisee's employee shall be deemed to be an employee of the franchisor or subfranchisor.