Section 31000.

31000. This division may be known as the “Franchise Investment Law.” References in this division to “this law” refer to the applicable provisions of this division. (Added by Stats. 1970, Ch. 1400.)

Section 31001.

31001. The Legislature hereby finds and declares that the widespread sale of franchises is a relatively new form of business which has created numerous problems both from an investment and a business point of view in the State of California. Prior to the enactment of this division, the sale of franchises was regulated only to […]

Section 31001.1.

31001.1. (a) To enhance the uniform and efficient administration, and the effective enforcement, of this division, it is the intent of the Legislature that the commissioner shall maintain a risk-based process of reviewing franchise applications as described in this section. (b) Under the risk-based review process, the commissioner shall focus on reviewing application information posing the most […]

Section 31002.

31002. Unless the context otherwise requires, the definitions in this part apply throughout this division. (Added by Stats. 1970, Ch. 1400.)

Section 31003.

31003. “Advertisement” means any written or printed communication or any communication by means of recorded telephone messages or spoken on radio, television, or similar communications media, published in connection with an offer or sale of a franchise. (Added by Stats. 1970, Ch. 1400.)

Section 31003.5.

31003.5. “Business days” are all days other than every Saturday, every Sunday, and such other days as are specified or provided for as holidays in the Government Code. (Added by Stats. 1973, Ch. 539.)

Section 31004.

31004. “Commissioner” means the Commissioner of Financial Protection and Innovation. (Amended by Stats. 2022, Ch. 728, Sec. 5. (AB 676) Effective January 1, 2023.)

Section 31005.

31005. (a) “Franchise” means a contract or agreement, either expressed or implied, whether oral or written, between two or more persons by which: (1) A franchisee is granted the right to engage in the business of offering, selling or distributing goods or services under a marketing plan or system prescribed in substantial part by a franchisor; and […]

Section 31005.5.

31005.5. For the purposes of this division and in respect only to a franchise as defined in subdivision (b) of Section 31005, the following terms shall have the following meanings: (a) “Franchisor” means a refiner or petroleum distributor who authorizes or permits, under a franchise, a petroleum retailer or petroleum distributor to use a trademark in […]

Section 31006.

31006. A “franchisee” is a person to whom a franchise is granted. (Added by Stats. 1970, Ch. 1400.)

Section 31007.

31007. A “franchisor” is a person who grants a franchise. (Added by Stats. 1970, Ch. 1400.)

Section 31008.

31008. “Area franchise” means any franchise between a franchisor and a franchisee whereby the franchisee is granted the right to operate more than one unit within a specified geographical area. (Amended by Stats. 1988, Ch. 562, Sec. 1.)

Section 31008.5.

31008.5. “Subfranchise” means any contract or agreement between a franchisor and a subfranchisor whereby the subfranchisor is granted the right, for consideration given in whole or in part for that right, to sell or negotiate the sale of franchises in the name or on behalf of the franchisor. A contract or agreement which is a […]

Section 31009.

31009. A “subfranchisor” is a person to whom a subfranchise is granted. (Amended by Stats. 1988, Ch. 562, Sec. 3.)

Section 31010.

31010. Where used in this law, unless specifically stated otherwise, “franchise” includes “area franchise” and “subfranchise.” (Amended by Stats. 1988, Ch. 562, Sec. 4.)

Section 31011.

31011. “Franchise fee” means any fee or charge that a franchisee or subfranchisor is required to pay or agrees to pay for the right to enter into a business under a franchise agreement, including, but not limited to, any payment for goods and services. However, the following shall not be considered the payment of a […]

Section 31012.

31012. “Fraud” and “deceit” are not limited to common law fraud or deceit. (Added by Stats. 1970, Ch. 1400.)

Section 31013.

31013. (a) An offer or sale of a franchise is made in this state when an offer to sell is made in this state, or an offer to buy is accepted in this state, or if the franchise business is intended to or will be operated in this state. (b) An offer to sell is made in […]

Section 31014.

31014. “Order” means a consent, authorization, approval, prohibition or requirement applicable to a specific case issued by the commissioner. (Added by Stats. 1970, Ch. 1400.)

Section 31015.

31015. “Person” means an individual, a corporation, a partnership, a limited liability company, a joint venture, an association, a joint stock company, a trust or an unincorporated organization. (Amended by Stats. 1994, Ch. 1010, Sec. 95. Effective January 1, 1995.)