CALIFORNIA FRANCHISE LAWS
Franchise Registration in California. Franchise registration is required under California law. “[I]t shall be unlawful for any person to offer or sell any franchise in this state unless the offer of the franchise has been registered under this part or exempted . . . .” California Corporations Code Section 31110.
The initial franchise registration filing fee is $675. Each annual renewal filing fee is $450. The California franchise regulator’s website is here.
Business Opportunity Exemption Registration in California. There is no state business opportunity exemption registration required for franchises in California.
Franchise Disclosure in California. The California Franchise Investment Law requires pre-sale disclosures to prospective franchisees similar to the requirements under the FTC Franchise Rule. California Corporations Code Section 31114.
Specific disclosure requirements are described in the California Administrative Code Section 310.114.1.
Franchise Relationship Law in California. The California Franchise Relations Act includes restrictions and requirements for terminations, non-renewals, transfers, notices, inventory repurchase, arbitration, and venue of disputes. California Business and Professions Code Section 20000 – 00043.
Please see important information about US federal and state franchise laws here.
We work with start-up and existing franchisors throughout the United States (and internationally). We would be delighted to discuss California franchise law with you. Please contact us for a free initial consultation about your particular situation.
Vinson Franchise Law Firm