summary
Introduced
03/29/2023
03/29/2023
In Committee
04/07/2023
04/07/2023
Crossed Over
04/04/2023
04/04/2023
Passed
04/07/2023
04/07/2023
Dead
Signed/Enacted/Adopted
04/13/2023
04/13/2023
Introduced Session
94th General Assembly (2023 Regular)
Bill Summary
AN ACT TO AMEND THE ARKANSAS FRANCHISE PRACTICES ACT; AND FOR OTHER PURPOSES.
AI Summary
This bill amends the Arkansas Franchise Practices Act to clarify its applicability, define "franchise owner," and make changes to the requirements for transferring or assigning a franchise. Specifically, the bill:
1. Clarifies that the Act applies to franchise agreements entered into, renewed, or transferred after March 4, 1977, where the franchise is required to establish or maintain a place of business in Arkansas, unless otherwise expressly excluded.
2. Adds a definition of "franchise owner" to include a person who owns a financial interest in a franchise or has guaranteed the obligations of a person or entity under a franchise agreement.
3. Modifies the requirements for a franchisee or franchise owner to transfer, assign, or sell a franchise, including providing a timeline for franchisor approval and allowing transfers to certain family members without prior approval.
4. Prohibits venue restrictions outside of Arkansas for claims arising under or relating to a franchise agreement involving a franchise operating in the state.
5. Establishes duties of good faith and fair dealing, requires franchisors to have material cause to terminate a franchise agreement, and provides opportunities for survivors of a franchisee to become owners.
The bill also includes severability and retroactivity provisions.
Committee Categories
Business and Industry
Sponsors (56)
Ricky Hill (R)*,
Jeff Wardlaw (R)*,
Fred Allen (D),
Howard Beaty (R),
Mary Bentley (R),
Mark Berry (R),
Justin Boyd (R),
Jill Bryant (R),
Steve Crowell (R),
Carol Dalby (R),
Breanne Davis (R),
Tyler Dees (R),
Denise Ennett (D),
Jon Eubanks (R),
Ken Ferguson (D),
Scott Flippo (R),
Vivian Flowers (D),
Zack Gramlich (R),
Kim Hammer (R),
R.J. Hawk (R),
Bart Hester (R),
Grant Hodges (R),
Mike Holcomb (R),
Steve Hollowell (R),
Missy Irvin (R),
Lane Jean (R),
Blake Johnson (R),
Mark Johnson (R),
Jack Ladyman (R),
Fred Love (D),
Roger Lynch (R),
Steve Magie (D),
Rick McClure (R),
Mark McElroy (R),
Matt McKee (R),
Brit McKenzie (R),
Jon Milligan (R),
Milton Nicks (D),
John Payton (R),
Shad Pearce (R),
Mark Perry (D),
Jim Petty (R),
Chad Puryear (R),
Jay Richardson (D),
Marcus Richmond (R),
Johnny Rye (R),
Bart Schulz (R),
Trey Steimel (R),
Matt Stone (R),
Gary Stubblefield (R),
Steve Unger (R),
DeAnn Vaught (R),
Dave Wallace (R),
Les Warren (R),
David Whitaker (D),
Jeremy Wooldridge (R),
Last Action
Notification that HB1783 is now Act 847 (on 04/13/2023)
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