HB2404 is a proposed bill that sets forth new regulations for franchises in Arizona, defining what constitutes a franchise agreement and the rights and obligations of franchisors and franchisees. It outlines the conditions for terminating or not renewing a franchise, including a 180-day notice requirement, and mandates franchisors to buy certain assets from franchisees upon termination or nonrenewal. The bill also protects franchisees' rights to sell or transfer their franchise and join trade associations, and prohibits litigation venue restrictions outside of Arizona.

The bill specifies that it will apply to franchises granted, renewed, or with an indefinite duration that can be terminated without cause, starting from January 1, 2024, but exempts franchisee-initiated amendments that do not significantly affect their rights. It also prevents franchisors from altering franchise agreements or demanding general releases from franchisees in exchange for emergency-related assistance, safeguarding franchisees during states of emergency.