LITTLE ROCK, Ark. – Over 110 local businesses in Arkansas have signed onto a letter urging the Arkansas State Legislature to reject HB 1783, outlining concerns about the proposed legislation that would significantly alter how franchises operate, deterring franchises from opening in Arkansas, and negatively impacting consumer choice.

“This legislation, negotiated behind closed doors by one special interest for the benefit of a single company, is dangerous for the state of Arkansas, plain and simple. Allowing the government to interfere in the private business decisions and contracts between franchisees and franchisors undermines an entire industry that creates more than 85,000 jobs and contributes more than $8 billion to Arkansas’ GDP,” said Matt Haller, President and CEO of the International Franchise Association. “There is no reason why Arkansas should position itself to the left of California as one of the worst states in the country for franchising. But unfortunately, that’s exactly the effect this legislation would have.”

“HB 1783 is bad for business, and that means it is bad for our members. Franchising is a proven catalyst for economic opportunity, business ownership, and wealth creation as franchises expand their business here in the state,” said Randy Zook, President and CEO of the Arkansas Chamber of Commerce. “A policy that destroys existing private contracts between businesses and disrupts the Arkansas economy should be absolutely unacceptable to our General Assembly.”

HB 1783 would create the most extreme franchising legislation in the country, significantly altering the franchise business model and making it harder for franchises to do business in the state of Arkansas. A consortium of Arkansas business organizations is unified in calling on the Arkansas Legislature to strike down HB 1783.

Read the full letter here.

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About the International Franchise Association :

Celebrating over 60 years of excellence, education, and advocacy, the International Franchise Association (IFA) is the world’s oldest and largest organization representing franchising worldwide. IFA works through its government relations and public policy, media relations, and educational programs to protect, enhance and promote franchising and the approximately 790,492 franchise establishments that support nearly 8.4 million direct jobs, $825.4 billion of economic output for the U.S. economy, and almost 3 percent of the Gross Domestic Product (GDP). IFA members include franchise companies in over 300 different business format categories, individual franchisees, and companies that support the industry in marketing, law, technology, and business development.

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