The proposed bill adds Chapter 41 to Title 44 of the Arizona Revised Statutes, establishing new regulations for franchise agreements aimed at defining the relationship between franchisors and franchisees, ensuring fair dealings, and providing judicial relief for franchisees. Key provisions include definitions for terms like "franchise" and "franchise fee," and stipulations that franchisors must have just cause to terminate or refuse to renew franchises. The bill also mandates that franchisors purchase inventory and assets from franchisees upon termination and grants franchisees rights to sell or transfer their franchises under certain conditions.

Significant changes from current law include the prohibition of waiving rights under the new chapter in franchise agreements, the applicability of these regulations only to agreements entered into or renewed after January 1, 2024, and the exclusion of lodging franchises from these provisions. The bill also ensures that franchise agreements cannot be modified or require general releases in exchange for assistance during emergencies. A severability clause is included to maintain the enforceability of remaining provisions if any part of the act is invalidated, and the act is titled the "Franchise Investment Protection Act" to highlight its focus on safeguarding franchisee rights.