Upon termination of any franchise by a franchisor without good cause, the franchisor shall, at the franchisee's option, repurchase at franchisee's net cost, less a reasonable allowance for depreciation or obsolescence, the franchisee's inventory, supplies, equipment, and furnishings purchased by the franchisee from the franchisor or its approved sources; however, no compensation shall be allowed for the personalized items which have no value to the franchisor.
Ark. Code Ann. § 4-72-209
Franchisee's right of repurchase
Applied in 2 court decisions — leading case American Standard, Inc. v. MILLER ENGINEERING, INC. (1989)
Most recently applied in 471 F. Supp. 2d 951 - Capital Equipment, Inc. v. Cnh America, LLC (April 2006)
Acts 1977, No. 355, § 9; A.S.A. 1947, § 70-815.
Current official text: Arkansas General Assembly. Digitized from the UniCourt Code Improvement Commission public-domain capture. Reproduced from public-domain Arkansas statutes; confirm against the official source for the current text. Not legal advice.