{"data":{"id":"us-ar/ark.-code-ann.-11-2-125","jurisdiction":"us-ar","citation":"Ark. Code Ann. § 11-2-125","heading":"Relationship between franchisee and franchisor - Definitions","body":"(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. Added by Act 2017, No. 966,§ 1, eff. 8/1/2017.\n\n(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.\n\n(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;\n\n(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;\nation of the franchise, the franchisee makes a required payment or commits to make a required payment to the franchisor or its affiliate;\n\n(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;\n\n(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\n\n(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;\n\n(2) \"Franchisee\" means a person that is granted a franchise;\n\n(3) \"Franchisor\" means a person that grants a franchise and participates in the franchise relationship; and\n\n(4) \"Subfranchisor\" means a person that functions as a franchisor by engaging in both presale activities and postsale performance.\n\n(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.","path":["AR Code","Title 11","Chapter 2","Subchapter 1"],"source_url":"https://oss-data-us.vaquill.ai/v2026.08/us_ar_statutes.parquet","current_through":"2026-08-14","vintage":"open-us-law v2026.08, retrieved 2026-09-14","retrieved_at":"2026-09-14T18:32:41Z","sha256":"6d328b0b9427e56add1e25104a905bb3317fe5958561ef6aa723f457aa654d86","source_id":"us-ar","stale":false,"prev":"us-ar/ark.-code-ann.-11-2-124","next":"us-ar/ark.-code-ann.-11-2-201"},"notice":"GroundRules: Original legal text. Not legal advice."}