This bill would update current statutes by adding Chapter 42 to Title 44 of the Arizona Revised Statutes, which establishes new regulations for franchise agreements. Key updates include the requirement for franchisors to provide written notice of non-renewal or termination, the establishment of good cause for termination, and the obligation for franchisors to purchase certain assets from franchisees upon termination. The chapter will specifically apply to franchises granted or renewed after January 1, 2027, and will not affect existing agreements unless initiated by the franchisee.

Additionally, the bill introduces definitions for terms related to franchising and outlines conditions under which franchisors may deny the transfer of a franchise. It emphasizes the protection of franchisees' rights, including prohibiting waivers of compliance with the chapter's provisions and ensuring franchisees can sell or transfer their franchises under certain conditions. The bill also prohibits franchisors from modifying agreements or requiring general releases during emergencies and includes a severability clause. The act will be titled the "Franchise Investment Protection Act."