California Corporations Code

§ 31115

CORP § 31115 Effective Jan 1, 2023Div. 5 · Title 4 · Part 2 · Ch. 2

Statute text

The commissioner may summarily issue a stop order denying the effectiveness of or suspending or revoking effectiveness of any registration if the commissioner finds any of the following:

(a)That there has been a failure to comply with any of the provisions of this law or the rules of the commissioner pertaining thereto.

(b)That the offer or sale of the franchise would constitute misrepresentation to, or deceit or fraud of the purchasers, or that, in the case of a franchise other than a subfranchise, a major inducement to prospective franchisees is fees or other compensation from participation in the sale of additional franchises.

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Legislative history

Amended by Stats. 2022, Ch. 728, Sec. 7. (AB 676) Effective January 1, 2023.