§ 31020. — 31020. (Added by Stats. 2024, Ch. 518, Sec. 1.)

California § 31020.

• Jurisdiction: California
• Code CORP: Corporations Code - CORP
• Div.: 5.
• Title 4.: DIVISION 5. FRANCHISE INVESTMENT LAW
• Part 1.: PART 1. DEFINITIONS

Text

(a)
“Franchise broker” means a person who directly or indirectly engages in the business of the offer or sale of a franchise, regardless of the title used by the person or any organization with which they are affiliated, and receives or is promised a fee, commission, or other form of consideration from a franchisor, subfranchisor, franchisee, or
affiliate of a franchisor, subfranchisor, or franchisee. Common titles franchise brokers use include, but are not limited to, franchise seller, broker network, broker organization, franchise sales organization, consultant, and coach.
(b)
A “franchise broker” does not include any of the following:
(1)
A franchisor or its officers, directors, or employees.
(2)
A subfranchisor or its officers, directors, or employees.
(3)
An area representative or its officers, directors, or employees.
(4)
An employee of an affiliate of a franchisor or subfranchisor.
(5)
A franchisee of the franchise offering being presented to a prospective franchisee, unless the franchisee operates a franchised broker business.

Legislative History

Added by Stats. 2024, Ch. 518, Sec. 1. (SB 919) Effective January 1, 2025.