Arizona HB2038 regulates franchise agreements, prohibiting franchisors from restricting franchisees' rights to join trade associations, voiding.
Arizona HB2038, the Franchise Investment Protection Act, establishes regulations for franchise agreements within the state. It prohibits franchisors from restricting franchisees' rights to join trade associations or prohibiting free association among franchisees for lawful purposes. The bill voids any venue restrictions in franchise agreements that direct claims to forums outside Arizona. It allows courts to grant injunctions for violations and lets franchisors offset remedies against prior recoveries or debts owed by franchisees.
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- Overview
- Core Provisions
- Implementation
- Impact
- Legal Framework
- Critical Issues
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