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A licence label does not choose the route
Section 44-1271(1)(c)(iii) excludes a franchise defined in 16 CFR 436.1. Compare actual brand association, assistance/control, payments and representations with that definition. Independent federal duties still apply where covered.
For a covered seller, section 44-1272 requires registration before soliciting from an Arizona location or soliciting a consumer located in Arizona. Both the sales team’s and prospect’s locations matter.
Use the deadline for the particular event
These duties belong to the covered-seller route, not every federally defined excluded franchise.
| Event | Stated requirement |
|---|---|
| Buyer commitment/payment | Section 44-1276.01: stated disclosure at least five business days before the earlier specified commitment or payment event. Keep any independently applicable federal period separate. |
| June 30 registration expiry | Section 44-1272(A): annual renewal within the 30 days before expiry—not at least 30 days before. |
| Required information changes | Subsection B: generally a supplemental statement within ten days. |
| Changes in solicitors hired | The separate quarterly update treatment. |
| New or revised solicitation material | Subsection F: submit before use, including a changed sales script. |
Scope
- Current forms, fee, bond, cancellation and broader relationship requirements remain unresolved. Consumer, industry and operating duties are not removed by this particular exclusion.
Next step
Establish the exclusion or covered-seller route before approaching prospects or using revised sales material.
Sources & review notes
Arizona Legislature
Passage, dates and research notes
primary · 1(c)(iii); definitions of seller and business opportunity
The sale of a franchise as defined by the federal trade commission regulations
Current consolidated page read. Its franchise exclusion concerns this business-opportunity definition, not every Arizona legal duty.
Arizona Legislature
Passage, dates and research notes
primary · A–C: business-opportunity disclosure
at least five business days before the earlier of the consumer’s execution of a contract
Supporting passage punctuation normalized only where quote uses typographic apostrophe; see raw source. Trigger covers the specified registered business-opportunity seller, not all franchises.
Arizona Legislature
Passage, dates and research notes
primary · A, B, C(12) and F
The registration statement expires on June 30 of each year
Read registration and sales-material filing provisions for covered sellers. Do not apply to every franchise without checking definitions/exemptions.
Detailed rule records (3)
ARS 44-1271(1)(c)(iii) excludes a franchise as defined in 16 CFR 436.1 from its business-opportunity definition. Establish that definition independently; choosing a licence label is not the test. This exclusion is not absence of every state or sector duty.
Arizona Revised Statutes 44-1271Covered sellers under 44-1272 register before soliciting from Arizona or a consumer in Arizona; the registration expires June 30 and new/revised sales material is submitted before use. Under 44-1276.01 a covered registered business-opportunity seller supplies disclosure at least five business days before the earlier stated commitment/payment events.
Arizona Revised Statutes 44-1272 Arizona Revised Statutes 44-1276.01 Arizona Revised Statutes 44-1271Under 44-1272, track June 30 expiry and the 30-day pre-expiry renewal window, the general 10-day information supplement with stated solicitor exception, and new/revised solicitation materials before use.
Arizona Revised Statutes 44-1272 Arizona Revised Statutes 44-1271Keep this reading in your learning library.
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