Arkansas Code
Subchapter 1 - General Provisions
§ 11-2-125. Relationship between franchisee and franchisor — Definitions

(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.

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