(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) ts 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.Added by Act 2017, No. 966,§ 1, eff. 8/1/2017.
Arkansas Legal Code