franchises; relationships; definitions

HB 2038 establishes Arizona's first comprehensive franchise law, defining key terms and setting rules for franchisor-franchisee relationships. It directly affects businesses operating under franchise agreements in Arizona, requiring franchisors to deal fairly with franchisees and prohibiting waivers of the law's provisions. Key mechanisms include requiring franchisors to provide a 90-day cure period before terminating a franchise for noncompliance (except in specific cases like bankruptcy or abandonment), and defining "franchise fee" to exclude reasonable startup costs. The law aims to balance power between franchisors and franchisees while providing legal recourse for violations.