Arkansas is neither a franchise registration state, business opportunity state, nor a franchise filing state. However, Arkansas does regulate franchise relationships and afford additional protection to franchisees in the state through the “Arkansas Franchise Practices Act,” Ark. Code §§ 4-72-201 et seq. (the “Act”).
Franchisors in Arkansas are largely unaffected by the Act for two reasons. First, under Ark. Code § 4-72-203, the Act’s provisions apply only to franchises entered into, renewed, or transferred after March 4, 1977. And second, under the same section, the Act specifically states that its provisions do not apply to franchises subject to the Federal Trade Commission Amended Franchise Rule, 16 C.F.R. §§ 436.1 et seq. (the “FTC Rule”).
Therefore, a franchisor who is operating a “franchise,” as defined under 16 C.F.R. § 436.1(h), and complying with the other requirements of the FTC Rule, is not subject to the Act’s provisions and is not required to make any additional filings before providing an FDD to a prospective franchisee in Arkansas.