California Code
TITLE 4 - SECURITIES
DIVISION 5 - FRANCHISE INVESTMENT LAW

PART 1 - DEFINITIONS

Section 31000. - 31000. This division may be known as the “Franchise Investment...

Section 31001. - 31001. The Legislature hereby finds and declares that the widespread...

Section 31001.1. - 31001.1. (a) To enhance the uniform and efficient administration, and...

Section 31002. - 31002. Unless the context otherwise requires, the definitions in this...

Section 31003. - 31003. “Advertisement” means any written or printed communication or any...

Section 31003.5. - 31003.5. “Business days” are all days other than every Saturday,...

Section 31004. - 31004. “Commissioner” means the Commissioner of Financial Protection and Innovation....

Section 31005. - 31005. (a) “Franchise” means a contract or agreement, either expressed...

Section 31005.5. - 31005.5. For the purposes of this division and in respect...

Section 31006. - 31006. A “franchisee” is a person to whom a franchise...

Section 31007. - 31007. A “franchisor” is a person who grants a franchise....

Section 31008. - 31008. “Area franchise” means any franchise between a franchisor and...

Section 31008.5. - 31008.5. “Subfranchise” means any contract or agreement between a franchisor...

Section 31009. - 31009. A “subfranchisor” is a person to whom a subfranchise...

Section 31010. - 31010. Where used in this law, unless specifically stated otherwise,...

Section 31011. - 31011. “Franchise fee” means any fee or charge that a...

Section 31012. - 31012. “Fraud” and “deceit” are not limited to common law...

Section 31013. - 31013. (a) An offer or sale of a franchise is...

Section 31014. - 31014. “Order” means a consent, authorization, approval, prohibition or requirement...

Section 31015. - 31015. “Person” means an individual, a corporation, a partnership, a...

Section 31016. - 31016. “Publish” means publicly to issue or circulate by newspaper,...

Section 31017. - 31017. “Rule” means any published regulation or standard of general...

Section 31018. - 31018. (a) “Sale” or “sell” includes every contract or agreement...

Section 31019. - 31019. “State” means any state, territory, or possession of the...

PART 2 - REGULATION OF THE SALE OF FRANCHISES

CHAPTER 1 - Exemptions

Section 31100. - 31100. There shall be exempted from any or all of...

Section 31101. - 31101. There shall be exempted from the provisions of Chapter...

Section 31102. - 31102. The offer or sale of a franchise by a...

Section 31103. - 31103. This division shall not be applicable to any transaction...

Section 31104. - 31104. There shall be exempted from the provisions of Chapter...

Section 31105. - 31105. Any offer, sale, or other transfer of a franchise,...

Section 31106. - 31106. There shall be exempted from the provisions of Chapter...

Section 31107. - 31107. There shall be exempted from the provisions of Chapter...

Section 31108. - 31108. There shall be exempted from the provisions of Chapter...

Section 31109. - 31109. Any offer or sale of a franchise that meets...

Section 31109.1. - 31109.1. (a) There shall be exempted from the provisions of...

CHAPTER 2 - Disclosure

Section 31110. - 31110. On and after April 15, 1971, it shall be...

Section 31111. - 31111. (a) The application for registration of an offer shall...

Section 31112. - 31112. Any application or amendment under this law shall be...

Section 31113. - 31113. If the commissioner finds that it is necessary and...

Section 31114. - 31114. The application for registration shall be accompanied by a...

Section 31115. - 31115. The commissioner may summarily issue a stop order denying...

Section 31116. - 31116. (a) Except as provided in subdivision (b), if no...

Section 31117. - 31117. Upon the entry of a stop order under Section...

Section 31118. - 31118. The commissioner may vacate or modify a stop order...

Section 31119. - 31119. (a) It is unlawful to sell any franchise in...

Section 31120. - 31120. A franchise offering shall be deemed duly registered for...

Section 31121. - 31121. (a) The registration may be renewed for additional periods...

Section 31122. - 31122. The registration renewal statement shall be in the form...

Section 31123. - 31123. A franchisor shall promptly notify the commissioner in writing,...

Section 31124. - 31124. An amendment to an application filed after the effective...

Section 31125. - 31125. (a) An application for registration of a material modification...

Section 31126. - 31126. (a) A prospective franchisee seeking to buy an existing...

CHAPTER 3 - General Provisions

Section 31150. - 31150. Every franchisor or subfranchisor offering franchises for sale in...

Section 31151. - 31151. The commissioner may accept and act upon the opinions,...

Section 31152. - 31152. Any document filed under this law or under the...

Section 31153. - 31153. In any proceeding under this law, the burden of...

Section 31154. - 31154. (a) Neither (1) the fact that an application for...

Section 31155. - 31155. Every applicant for registration of an offer to sell...

Section 31156. - 31156. No person shall publish in this state any advertisement...

Section 31157. - 31157. No person shall publish any advertisement concerning any franchise...

Section 31158. - 31158. (a) Notwithstanding any other law, the commissioner may by...

PART 3 - FRAUDULENT AND PROHIBITED PRACTICES

CHAPTER 1 - Fraudulent Practices

Section 31200. - 31200. It is unlawful for any person willfully to make...

Section 31201. - 31201. It is unlawful for any person to offer or...

Section 31202. - 31202. It is unlawful for any person willfully to make...

Section 31203. - 31203. It is unlawful for any person to violate any...

Section 31204. - 31204. (a) It is unlawful for any person to knowingly...

CHAPTER 2 - Prohibited Practices

Section 31210. - 31210. It is unlawful for any person to effect or...

Section 31211. - 31211. If in the opinion of the commissioner any person...

Section 31212. - 31212. No franchisor shall refuse to grant a franchise, or...

CHAPTER 3 - Unfair Practices

Section 31220. - 31220. It shall be a violation of this division for...

Section 31221. - 31221. It shall be a violation of this division for...

PART 4 - ENFORCEMENT

CHAPTER 1 - Civil Liability

Section 31300. - 31300. Any person who offers or sells a franchise in...

Section 31301. - 31301. Any person who violates Section 31201 shall be liable...

Section 31302. - 31302. Every person who directly or indirectly controls a person...

Section 31302.5. - 31302.5. (a) Any person who violates Section 31220 may be...

Section 31303. - 31303. No action shall be maintained to enforce any liability...

Section 31304. - 31304. No action shall be maintained to enforce any liability...

Section 31305. - 31305. Every cause of action under this chapter survives the...

Section 31306. - 31306. Nothing in this chapter shall limit any liability which...

CHAPTER 2 - Powers of the Commissioner

Section 31400. - 31400. (a) Whenever it appears to the commissioner that any...

Section 31400.1. - 31400.1. In any proceeding under Section 31400, the court may...

Section 31401. - 31401. (a) The commissioner may in his discretion (1) make...

Section 31402. - 31402. If, in the opinion of the commissioner, the offer...

Section 31403. - 31403. If, in the opinion of the commissioner, the offer...

Section 31404. - 31404. The commissioner may refer evidence that is available concerning...

Section 31405. - 31405. (a) Any person who violates any provision of this...

Section 31406. - 31406. (a) If, upon inspection or investigation, based upon a...

Section 31407. - 31407. (a) If, after examination or investigation, the commissioner has...

Section 31408. - 31408. (a) If the commissioner determines it is in the...

CHAPTER 3 - Crimes

Section 31410. - 31410. Any person who willfully violates any provision of this...

Section 31411. - 31411. Any person who willfully employs, directly or indirectly, any...

Section 31412. - 31412. Nothing in this law limits the power of the...

CHAPTER 4 - Service of Process

Section 31420. - 31420. When any person, including any nonresident of this state,...

PART 5 - ADMINISTRATION

Section 31500. - 31500. (a) The commissioner shall charge and collect the fees...

Section 31501. - 31501. Every final order, decision, license, or other official act...

Section 31502. - 31502. The commissioner may from time to time make, amend...

Section 31503. - 31503. All rules of the commissioner, other than those relating...

Section 31504. - 31504. (a) All applications, reports and other papers and documents...

Section 31505. - 31505. Upon request and at such reasonable charges as he...

Section 31506. - 31506. (a) The commissioner may destroy any applications or orders,...

PART 6 - GENERAL PROVISIONS

Section 31510. - 31510. The commissioner in his discretion may honor requests from...

Section 31511. - 31511. No provision of this law imposing any liability applies...

Section 31512. - 31512. Any condition, stipulation or provision purporting to bind any...

Section 31512.1. - 31512.1. Any provision of a franchise agreement, franchise disclosure document,...

Section 31513. - 31513. Whenever a person is entitled under this law to...

Section 31514. - 31514. If any provision of this law or the application...

Section 31515. - 31515. Prior law exclusively governs all suits, actions, prosecutions or...

Section 31516. - 31516. Nothing in this law is intended to preclude the...