California Corporations Code

§ 31020

CORP § 31020 Effective Jan 1, 2025Div. 5 · Title 4 · Part 1

Statute 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.

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Legislative history

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