reglab/statecodes huggingface dataset:
2023 California Code › Corporations Code - CORP › TITLE 4 - SECURITIES › DIVISION 5 - FRANCHISE INVESTMENT LAW › PART 2 - REGULATION OF THE SALE OF FRANCHISES › CHAPTER 1 - Exemptions › Section 31109.1.

31109.1. (a) There shall be exempted from the provisions of Chapter 2 (commencing with Section 31110) the offer and sale of a franchise registered under Section 31111, 31121, or 31123 on terms different from the terms of the offer registered thereunder if all of the following requirements are met:
(1) The initial offer is the offer registered under Section 31111, 31121, or 31123.
(2) The prospective franchisee receives all of the following in a separate written appendix to the franchise disclosure document:
(A) A summary description of each material negotiated term that was negotiated by the franchisor for a California franchise during the 12-month period ending in the calendar month immediately preceding the month in which the negotiated offer or sale is made under this section.
(B) A statement indicating that copies of the negotiated terms are available upon written request.
(C) The name, telephone number, and address of the representative of the franchisor to whom requests for a copy of the negotiated terms may be obtained.
(3) The franchisor certifies or declares in an appendix to its application for renewal that it has complied with all of the requirements of this section, in the event this exemption is claimed.
(4) The negotiated terms, on the whole, confer additional benefits on the franchisee.
(b) The franchisor shall provide a copy of the negotiated terms described in subdivision (a) to the prospective franchisee within five business days following the request of the franchisee.
(c) The franchisor shall maintain copies of all material negotiated terms for which this exemption is claimed for a period of five years from the effective date of the first agreement containing the relevant negotiated term. Upon the request of the commissioner, the franchisor shall make the copies available to the commissioner for review. For purposes of this section, the commissioner may prescribe by rule or order the format and content of the summary description of the negotiated terms required by subparagraph (A) of paragraph (2) of subdivision (a).
(d) For purposes of this section, “material” means that a reasonable franchisee would view the terms as important in negotiating the franchise.
(Amended by Stats. 2013, Ch. 334, Sec. 3. (SB 537) Effective January 1, 2014.)
2023 California Code › Corporations Code - CORP › TITLE 4 - SECURITIES › DIVISION 5 - FRANCHISE INVESTMENT LAW › PART 2 - REGULATION OF THE SALE OF FRANCHISES › CHAPTER 2 - Disclosure › Section 31110.

31110. On and after April 15, 1971, it 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 under Chapter 1 (commencing with Section 31100) of this part.
(Added by Stats. 1970, Ch. 1400.)
2023 California Code › Corporations Code - CORP › TITLE 4 - SECURITIES › DIVISION 5 - FRANCHISE INVESTMENT LAW › PART 2 - REGULATION OF THE SALE OF FRANCHISES › CHAPTER 2 - Disclosure › Section 31111.

31111. (a) The application for registration of an offer shall be filed with the commissioner upon the Uniform Franchise Registration Application, as identified, modified, and supplemented by rule of the commissioner.
(b) An authorization for the commissioner to examine the registrant’s financial records of the sale of the franchise pursuant to Section 7473 of the Government Code shall be filed with the application.
(Amended by Stats. 1989, Ch. 1026, Sec. 4.)
2023 California Code › Corporations Code - CORP › TITLE 4 - SECURITIES › DIVISION 5 - FRANCHISE INVESTMENT LAW › PART 2 - REGULATION OF THE SALE OF FRANCHISES › CHAPTER 2 - Disclosure › Section 31112.

31112. Any application or amendment under this law shall be signed and verified by the franchisor or by the subfranchisor. Such verification shall be in the same manner provided in the Code of Civil Procedure for the verification of pleadings.
(Amended by Stats. 1988, Ch. 562, Sec. 7.)
2023 California Code › Corporations Code - CORP › TITLE 4 - SECURITIES › DIVISION 5 - FRANCHISE INVESTMENT LAW › PART 2 - REGULATION OF THE SALE OF FRANCHISES › CHAPTER 2 - Disclosure › Section 31113.

31113. If the commissioner finds that it is necessary and appropriate for the protection of prospective franchisees or subfranchisors because the applicant has failed to demonstrate that adequate financial arrangements have been made to fulfill the franchisor’s obligations to provide real estate, improvements, equipment, inventory, training, or other items included in the offering, the commissioner may by rule or order require the escrow or impound of franchisee fees and other funds paid by the franchisee or subfranchisor until such obligations have been satisfied. At the option of the franchisor, the franchisor may furnish a surety bond as provided by rule of the commissioner.
(Amended by Stats. 1982, Ch. 517, Sec. 195.)
2023 California Code › Corporations Code - CORP › TITLE 4 - SECURITIES › DIVISION 5 - FRANCHISE INVESTMENT LAW › PART 2 - REGULATION OF THE SALE OF FRANCHISES › CHAPTER 2 - Disclosure › Section 31114.

31114. The application for registration shall be accompanied by a proposed franchise disclosure document, which shall contain the material information set forth in the application for registration, as specified by rule of the commissioner, and such additional disclosures as the commissioner may require. The franchise disclosure document shall recite in bold type of not less than 10-point type that registration does not constitute approval, recommendation, or endorsement by the commissioner.
(Amended by Stats. 2013, Ch. 334, Sec. 4. (SB 537) Effective January 1, 2014.)
2023 California Code › Corporations Code - CORP › TITLE 4 - SECURITIES › DIVISION 5 - FRANCHISE INVESTMENT LAW › PART 2 - REGULATION OF THE SALE OF FRANCHISES › CHAPTER 2 - Disclosure › Section 31115.

31115. 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.
(c) That the applicant has failed to comply with any rule or order of the commissioner issued pursuant to Section 31113.
(d) That any person identified in the application or any officer or director of the franchisor, whether or not identified in the application, meets one or more of the following conditions, and the involvement of this person in the sale or management of the franchise creates an unreasonable risk to prospective franchisees:
(1) Has been convicted of a felony, or pleaded nolo contendere to a felony charge, or held liable in a civil action by final judgment if the felony or civil action involved fraud, embezzlement, fraudulent conversion, or misappropriation of property.
(2) Is subject to any currently effective order of the United States Securities and Exchange Commission or the securities administrator of any state denying registration to or revoking or suspending the registration of the person as a securities broker or dealer or investment adviser or is subject to any currently effective order of any national securities association or national securities exchange (as defined in the Securities Exchange Act of 1934) suspending or expelling the person from membership in the association or exchange.
(3) Is subject to any currently effective order or ruling of the Federal Trade Commission.
(4) Is subject to any currently effective injunctive or restrictive order relating to business activity as a result of an action brought by any public agency or department, including, without limitation, actions affecting a license as a real estate broker or sales person.
(e) The franchisor’s method of business includes or would include activities that are or would be illegal where performed.
(f) The franchise agreement contains a provision that is contrary to law.
(Amended by Stats. 2022, Ch. 728, Sec. 7. (AB 676) Effective January 1, 2023.)
2023 California Code › Corporations Code - CORP › TITLE 4 - SECURITIES › DIVISION 5 - FRANCHISE INVESTMENT LAW › PART 2 - REGULATION OF THE SALE OF FRANCHISES › CHAPTER 2 - Disclosure › Section 31116.

31116. (a) Except as provided in subdivision (b), if no stop order under Section 31115 is in effect under this law, registration of the offer of franchises automatically becomes effective at 12 p.m., California time, of the 30th business day after the filing of a complete application for registration or the last preeffective amendment thereto, or at an earlier time that the commissioner determines.
(b) With respect to any application for registration or the last amendment thereto filed between January 1, 1971, and March 15, 1971, if no stop order under Section 31115 is in effect under this law, registration becomes effective on April 15, 1971; with respect to any application filed after March 15, 1971, and before May 10, 1971, if no stop order under Section 31115 is in effect under this law, registration becomes effective on June 1, 1971, or the 15th business day after the filing, whichever is the later, or at an earlier time that the commissioner determines.
(c) For purposes of this section, “complete application” means an application that contains the appropriate filing fee, Uniform Franchise Disclosure Document, and all additional exhibits, including financial statements in conformity with regulations of the commissioner. “Preeffective amendment” means an amendment to an application that is filed before the effective date of the registration of the sale of franchises.
(Amended by Stats. 2015, Ch. 303, Sec. 48. (AB 731) Effective January 1, 2016.)
2023 California Code › Corporations Code - CORP › TITLE 4 - SECURITIES › DIVISION 5 - FRANCHISE INVESTMENT LAW › PART 2 - REGULATION OF THE SALE OF FRANCHISES › CHAPTER 2 - Disclosure › Section 31117.

31117. Upon the entry of a stop order under Section 31115 the commissioner shall promptly notify the applicant that it has been entered and of the reasons therefor and that upon receipt of written request the matter will be set down for hearing to commence within 15 business days after such receipt unless the applicant consents to a later date. If no hearing is requested within 30 days after receipt of the notice and none is ordered by the commissioner, the order will remain in effect until it is modified or vacated by the commissioner. If a hearing is requested or ordered, the commissioner, after notice and hearing in accordance with the provisions of Chapter 5 (commencing with Section 11500) of Part 1 of Division 3 of Title 2 of the Government Code, in connection with which the commissioner shall have all of the powers granted thereunder, may modify or vacate the order or extend it until its final determination.
(Amended by Stats. 1988, Ch. 562, Sec. 9.)
2023 California Code › Corporations Code - CORP › TITLE 4 - SECURITIES › DIVISION 5 - FRANCHISE INVESTMENT LAW › PART 2 - REGULATION OF THE SALE OF FRANCHISES › CHAPTER 2 - Disclosure › Section 31118.

31118. The commissioner may vacate or modify a stop order if he or she finds that the conditions which caused its entry have changed or that it is otherwise in the public interest to do so.
(Amended by Stats. 2014, Ch. 64, Sec. 7. (AB 2742) Effective January 1, 2015.)
2023 California Code › Corporations Code - CORP › TITLE 4 - SECURITIES › DIVISION 5 - FRANCHISE INVESTMENT LAW › PART 2 - REGULATION OF THE SALE OF FRANCHISES › CHAPTER 2 - Disclosure › Section 31119.

31119. (a) It is unlawful to sell any franchise in this state that is subject to registration under this law without first providing to the prospective franchisee, at least 14 days prior to the execution by the prospective franchisee of any binding franchise or other agreement, or at least 14 days prior to the receipt of any consideration, whichever occurs first, a copy of the franchise disclosure document, together with a copy of all proposed agreements relating to the sale of the franchise.
(b) Nothing in this division shall be construed to prevent a franchisor from providing copies of the franchise disclosure documents to prospective franchisees through electronic means pursuant to any requirements or conditions that may be imposed by rule or order of the commissioner.
(Amended by Stats. 2013, Ch. 334, Sec. 5. (SB 537) Effective January 1, 2014.)
2023 California Code › Corporations Code - CORP › TITLE 4 - SECURITIES › DIVISION 5 - FRANCHISE INVESTMENT LAW › PART 2 - REGULATION OF THE SALE OF FRANCHISES › CHAPTER 2 - Disclosure › Section 31120.

31120. A franchise offering shall be deemed duly registered for a period of one year from the effective date of the registration, unless the commissioner by order or rule specifies a different period.
(Added by Stats. 1970, Ch. 1400.)
2023 California Code › Corporations Code - CORP › TITLE 4 - SECURITIES › DIVISION 5 - FRANCHISE INVESTMENT LAW › PART 2 - REGULATION OF THE SALE OF FRANCHISES › CHAPTER 2 - Disclosure › Section 31121.

31121. (a) The registration may be renewed for additional periods of one year each, unless the commissioner by rule or order specifies a different period, by submitting to the commissioner a renewal application before the expiration of the registration. If no stop order or other order under Section 31115 is in effect under this law, registration of the offer of the franchises automatically becomes renewed effective at 12 p.m., California time, of the 30th business day after the filing of a complete application for registration or the last preeffective amendment or at an earlier time that the commissioner determines.
(b) For purposes of this section, “complete application” means an application that contains the appropriate filing fee, Uniform Franchise Disclosure Document, and all additional exhibits, including financial statements in conformity with regulations of the commissioner. “Preeffective amendment” means an amendment to an application that is filed before the effective date of the registration of the sale of franchises.
(Amended by Stats. 2015, Ch. 303, Sec. 49. (AB 731) Effective January 1, 2016.)
2023 California Code › Corporations Code - CORP › TITLE 4 - SECURITIES › DIVISION 5 - FRANCHISE INVESTMENT LAW › PART 2 - REGULATION OF THE SALE OF FRANCHISES › CHAPTER 2 - Disclosure › Section 31122.

31122. The registration renewal statement shall be in the form and content prescribed by the commissioner, and shall be accompanied by a proposed offering prospectus. Each such registration renewal statement shall be accompanied by the fee prescribed in Part 5 (commencing with Section 31500) of this division.
(Added by Stats. 1970, Ch. 1400.)
2023 California Code › Corporations Code - CORP › TITLE 4 - SECURITIES › DIVISION 5 - FRANCHISE INVESTMENT LAW › PART 2 - REGULATION OF THE SALE OF FRANCHISES › CHAPTER 2 - Disclosure › Section 31123.

31123. A franchisor shall promptly notify the commissioner in writing, by an application to amend the registration, of any material change in the information contained in the application as originally submitted, amended or renewed. The commissioner may by rule further define what shall be considered a material change for such purposes, and the circumstances under which a revised offering prospectus must accompany such application.
(Added by Stats. 1970, Ch. 1400.)
2023 California Code › Corporations Code - CORP › TITLE 4 - SECURITIES › DIVISION 5 - FRANCHISE INVESTMENT LAW › PART 2 - REGULATION OF THE SALE OF FRANCHISES › CHAPTER 2 - Disclosure › Section 31124.

31124. An amendment to an application filed after the effective date of the registration of the sale of franchises, if such amendment is approved by the commissioner, shall become effective on such date as the commissioner may determine, having due regard for the public interest and the protection of franchisees.
(Added by Stats. 1970, Ch. 1400.)
2023 California Code › Corporations Code - CORP › TITLE 4 - SECURITIES › DIVISION 5 - FRANCHISE INVESTMENT LAW › PART 2 - REGULATION OF THE SALE OF FRANCHISES › CHAPTER 3 - General Provisions › Section 31150.

31150. Every franchisor or subfranchisor offering franchises for sale in this state shall at all times keep and maintain a complete set of books, records, and accounts of such sales.
(Added by Stats. 1970, Ch. 1400.)
2023 California Code › Corporations Code - CORP › TITLE 4 - SECURITIES › DIVISION 5 - FRANCHISE INVESTMENT LAW › PART 2 - REGULATION OF THE SALE OF FRANCHISES › CHAPTER 3 - General Provisions › Section 31151.

31151. The commissioner may accept and act upon the opinions, appraisements and reports of any engineers, appraisers, or other experts which may be presented by an applicant or any interested party, on any question of fact concerning or affecting the franchises proposed to be offered and sold. In lieu of, or in addition to, such opinions, appraisements, and reports, the commissioner may have any or all matters concerning or affecting such franchises investigated, appraised, passed upon and certified to him by engineers, appraisers or other experts selected by him.
(Added by Stats. 1970, Ch. 1400.)
2023 California Code › Corporations Code - CORP › TITLE 4 - SECURITIES › DIVISION 5 - FRANCHISE INVESTMENT LAW › PART 2 - REGULATION OF THE SALE OF FRANCHISES › CHAPTER 3 - General Provisions › Section 31152.

31152. Any document filed under this law or under the Corporate Securities Law of 1968 or a predecessor statute thereto may be incorporated by reference in a subsequent application filed under this law if it was filed within four years prior to the filing of such application, or is otherwise available in the files of the commissioner, to the extent that the document is currently accurate.
(Added by Stats. 1970, Ch. 1400.)
2023 California Code › Corporations Code - CORP › TITLE 4 - SECURITIES › DIVISION 5 - FRANCHISE INVESTMENT LAW › PART 2 - REGULATION OF THE SALE OF FRANCHISES › CHAPTER 3 - General Provisions › Section 31153.

31153. In any proceeding under this law, the burden of proving an exemption or an exception from a definition is upon the person claiming it.
(Added by Stats. 1970, Ch. 1400.)
2023 California Code › Corporations Code - CORP › TITLE 4 - SECURITIES › DIVISION 5 - FRANCHISE INVESTMENT LAW › PART 2 - REGULATION OF THE SALE OF FRANCHISES › CHAPTER 3 - General Provisions › Section 31154.

31154. (a) Neither (1) the fact that an application for registration under this law has been filed, nor (2) the fact that such registration has become effective constitutes a finding by the commissioner that any document filed under this law is true, complete or not misleading. Neither any such fact nor the fact that an exemption is available for a transaction means that the commissioner has passed in any way upon the merits or qualifications of, or recommended or given approval to, any person, franchise or transaction.
(b) It is unlawful to make or cause to be made to any prospective purchaser or offeree any representation inconsistent with subdivision (a) of this section.
(Added by Stats. 1970, Ch. 1400.)
2023 California Code › Corporations Code - CORP › TITLE 4 - SECURITIES › DIVISION 5 - FRANCHISE INVESTMENT LAW › PART 2 - REGULATION OF THE SALE OF FRANCHISES › CHAPTER 3 - General Provisions › Section 31155.

31155. Every applicant for registration of an offer to sell franchises under this law, by other than a California corporation, California limited partnership, or California limited liability company, shall file with the commissioner, in such form as he or she by rule prescribed, an irrevocable consent appointing the commissioner or his or her successor in office to be his or her attorney to receive service of any lawful process in any noncriminal suit, action or proceeding against him or her or his or her successor, executor or administrator, which arises under this law or any rule or order hereunder after the consent has been filed, with the same force and validity as if served personally on the person filing the consent. A person who has filed such a consent in connection with a previous registration under this law need not file another. Service may be made by leaving a copy of the process in the office of the commissioner but it is not effective unless (a) the plaintiff, who may be the commissioner in a suit, action, or proceeding instituted by him or her, forthwith sends notice of the service and a copy of the process by registered or certified mail to the defendant or respondent at his or her last address on file with the commissioner, and (b) the plaintiff’s affidavit of compliance with this section is filed in the case on or before the return day of the process, if any, or within such further time as the court allows.
(Amended by Stats. 2009, Ch. 140, Sec. 41. (AB 1164) Effective January 1, 2010.)
2023 California Code › Corporations Code - CORP › TITLE 4 - SECURITIES › DIVISION 5 - FRANCHISE INVESTMENT LAW › PART 2 - REGULATION OF THE SALE OF FRANCHISES › CHAPTER 3 - General Provisions › Section 31156.

31156. No person shall publish in this state any advertisement offering a franchise subject to the registration requirements of this law unless a true copy of the advertisement has been filed in the office of the commissioner at least three business days prior to the first publication or such shorter period as the commissioner by rule or order may allow, or unless such advertisement has been exempted by rule of the commissioner.
(Added by Stats. 1970, Ch. 1400.)
2023 California Code › Corporations Code - CORP › TITLE 4 - SECURITIES › DIVISION 5 - FRANCHISE INVESTMENT LAW › PART 2 - REGULATION OF THE SALE OF FRANCHISES › CHAPTER 3 - General Provisions › Section 31157.

31157. No person shall publish any advertisement concerning any franchise in this state after the commissioner finds that the advertisement contains any statement that is false or misleading or omits to make any statement necessary in order to make the statements made, in light of the circumstances under which they were made, not misleading and so notifies the person in writing. Such notification may be given summarily without notice of hearing. At any time after the issuance of a notification under this section, the person desiring to use the advertisement may in writing request that the order be rescinded. Upon the receipt of such a written request, the matter shall be set down for hearing to commence within 15 business days after such receipt unless the person making the request consents to a later date. After such hearing, which shall be conducted in accordance with the provisions of Chapter 5 (commencing with Section 11500) of Part 1 of Division 3 of Title 2 of the Government Code, the commissioner shall determine whether to affirm and continue or to rescind such order, and the commissioner shall have all the powers granted under such act.
(Amended by Stats. 1973, Ch. 539.)
2023 California Code › Corporations Code - CORP › TITLE 4 - SECURITIES › DIVISION 5 - FRANCHISE INVESTMENT LAW › PART 2 - REGULATION OF THE SALE OF FRANCHISES › CHAPTER 3 - General Provisions › Section 31158.

31158. (a) Notwithstanding any other law, the commissioner may by rule or order prescribe circumstances under which to accept electronic records or electronic signatures. This section does not require the commissioner to accept electronic records or electronic signatures.
(b) For purposes of this section, the following terms have the following meanings:
(1) “Electronic record” means an initial registration application, registration renewal statement, preeffective amendment, posteffective amendment, or material modification and any other record created, generated, sent, communicated, received, or stored by electronic means. “Electronic record” also includes, but is not limited to, all of the following:
(A) An application, amendment, supplement, and exhibit, filed for any registration, order, license, consent, or other authority.
(B) A financial statement, report, or advertising.
(C) An order, license, consent, or other authority.
(D) A notice of public hearing, accusation, and statement of issues in connection with any application, registration, order, license, consent, or other authority.
(E) A proposed decision of a hearing officer and a decision of the commissioner.
(F) The transcripts of a hearing.
(G) A release, newsletter, interpretive opinion, determination, or specific ruling.
(H) Correspondence between a party and the commissioner directly relating to any document listed in subparagraphs (A) to (G), inclusive.
(2) “Electronic signature” means an electronic sound, symbol, or process attached to or logically associated with an electronic record and executed or adopted by a person with the intent to sign the electronic record.
(c) The Legislature finds and declares that the Department of Financial Protection and Innovation has continuously implemented methods to accept records filed electronically, including broker-dealer and investment adviser applications, and is encouraged to continue to expand its use of electronic filings to the extent feasible, as budget, resources, and equipment are made available to accomplish that goal.
(Amended by Stats. 2022, Ch. 452, Sec. 92. (SB 1498) Effective January 1, 2023.)
2023 California Code › Corporations Code - CORP › TITLE 4 - SECURITIES › DIVISION 5 - FRANCHISE INVESTMENT LAW › PART 3 - FRAUDULENT AND PROHIBITED PRACTICES › CHAPTER 1 - Fraudulent Practices › Section 31200.

31200. It is unlawful for any person willfully to make any untrue statement of a material fact in any application, notice or report filed with the commissioner under this law, or willfully to omit to state in any such application, notice, or report any material fact which is required to be stated therein, or fail to notify the commissioner of any material change as required by Section 31123.
(Added by Stats. 1970, Ch. 1400.)
2023 California Code › Corporations Code - CORP › TITLE 4 - SECURITIES › DIVISION 5 - FRANCHISE INVESTMENT LAW › PART 3 - FRAUDULENT AND PROHIBITED PRACTICES › CHAPTER 1 - Fraudulent Practices › Section 31201.

31201. It is unlawful for any person to offer or sell a franchise in this state by means of any written or oral communication not enumerated in Section 31200 which includes an untrue statement of a material fact or omits to state a material fact necessary in order to make the statements made, in the light of the circumstances under which they were made, not misleading.
(Added by Stats. 1970, Ch. 1400.)
2023 California Code › Corporations Code - CORP › TITLE 4 - SECURITIES › DIVISION 5 - FRANCHISE INVESTMENT LAW › PART 3 - FRAUDULENT AND PROHIBITED PRACTICES › CHAPTER 1 - Fraudulent Practices › Section 31202.

31202. It is unlawful for any person willfully to make any untrue statement of a material fact in any statement required to be disclosed in writing pursuant to Section 31101, or willfully to omit to state in any such statement any material fact which is required to be stated therein.
(Added by Stats. 1970, Ch. 1400.)
2023 California Code › Corporations Code - CORP › TITLE 4 - SECURITIES › DIVISION 5 - FRANCHISE INVESTMENT LAW › PART 3 - FRAUDULENT AND PROHIBITED PRACTICES › CHAPTER 1 - Fraudulent Practices › Section 31203.

31203. It is unlawful for any person to violate any order of the commissioner or condition to the effectiveness of the registration of the offer or sale of franchises.
(Added by Stats. 1970, Ch. 1400.)
2023 California Code › Corporations Code - CORP › TITLE 4 - SECURITIES › DIVISION 5 - FRANCHISE INVESTMENT LAW › PART 3 - FRAUDULENT AND PROHIBITED PRACTICES › CHAPTER 1 - Fraudulent Practices › Section 31204.

31204. (a) It is unlawful for any person to knowingly alter, destroy, mutilate, conceal, cover up, falsify, or make a false entry in any record, document, or tangible object with the intent to impede, obstruct, or influence the administration or enforcement of any provision of this division.
(b) It is unlawful for any person to knowingly make an untrue statement to the commissioner during the course of licensing, investigation, or examination, with the intent to impede, obstruct, or influence the administration or enforcement of any provision of this division.
(Added by Stats. 2007, Ch. 101, Sec. 13. Effective January 1, 2008.)
2023 California Code › Corporations Code - CORP › TITLE 4 - SECURITIES › DIVISION 5 - FRANCHISE INVESTMENT LAW › PART 3 - FRAUDULENT AND PROHIBITED PRACTICES › CHAPTER 2 - Prohibited Practices › Section 31210.

31210. It is unlawful for any person to effect or attempt to effect a sale of a franchise in this state, except in transactions exempted under Chapter 1 (commencing with Section 31100) of Part 2 of this division, unless such person is: (1) identified in an application or amended application filed with the commissioner pursuant to Part 2 (commencing with Section 31100) of this division, (2) licensed by the Bureau of Real Estate as a real estate broker or real estate salesperson, or (3) licensed by the commissioner as a broker-dealer or agent pursuant to the Corporate Securities Law of 1968.
(Amended by Stats. 2016, Ch. 177, Sec. 33. (AB 685) Effective January 1, 2017.)
2023 California Code › Corporations Code - CORP › TITLE 4 - SECURITIES › DIVISION 5 - FRANCHISE INVESTMENT LAW › PART 3 - FRAUDULENT AND PROHIBITED PRACTICES › CHAPTER 2 - Prohibited Practices › Section 31211.

31211. If in the opinion of the commissioner any person is acting in violation of Section 31210, the commissioner may order such person to desist and refrain from further activity. If, after such an order has been made, a request for a hearing is filed in writing by the person to whom such order was directed, a hearing shall be held in accordance with the provisions of Chapter 5 (commencing with Section 11500) of Part 1 of Division 3 of Title 2 of the Government Code, and the commissioner shall have all of the powers granted thereunder; unless such hearing is commenced within 15 business days after the request is made (or the person affected consents to a later date), such order shall be deemed rescinded.
(Amended by Stats. 1973, Ch. 539.)
2023 California Code › Corporations Code - CORP › TITLE 4 - SECURITIES › DIVISION 5 - FRANCHISE INVESTMENT LAW › PART 3 - FRAUDULENT AND PROHIBITED PRACTICES › CHAPTER 2 - Prohibited Practices › Section 31212.

31212. No franchisor shall refuse to grant a franchise, or refuse to provide financial assistance, to a franchisee or prospective franchisee that has been granted or provided to other similarly situated franchisees or prospective franchisees based solely on any characteristic of the franchisee or prospective franchisee, or any characteristic of the composition of the neighborhood or geographic area where the franchise is located or the proposed franchise would be located, listed or defined in subdivision (b) or (e) of Section 51 of the Civil Code. Nothing in this section shall be interpreted to prohibit a franchisor from granting a franchise to a prospective franchisee as part of a program to make franchises available to persons lacking the capital, training, business experience, or other qualifications ordinarily required of franchisees, or any other affirmative action program adopted by the franchisor.
(Added by Stats. 2022, Ch. 728, Sec. 9. (AB 676) Effective January 1, 2023.)
2023 California Code › Corporations Code - CORP › TITLE 4 - SECURITIES › DIVISION 5 - FRANCHISE INVESTMENT LAW › PART 3 - FRAUDULENT AND PROHIBITED PRACTICES › CHAPTER 3 - Unfair Practices › Section 31220.

31220. It shall be a violation of this division for any franchisor, directly or indirectly, through any officer, agent or employee, to restrict or inhibit the right of franchisees to join a trade association or to prohibit the right of free association among franchisees for any lawful purposes. Notwithstanding Section 31410, a violation of this section shall not constitute a crime.
(Added by Stats. 1977, Ch. 510.)
2023 California Code › Corporations Code - CORP › TITLE 4 - SECURITIES › DIVISION 5 - FRANCHISE INVESTMENT LAW › PART 3 - FRAUDULENT AND PROHIBITED PRACTICES › CHAPTER 3 - Unfair Practices › Section 31221.

31221. It shall be a violation of this division for any franchisor, directly or indirectly, through any officer, agent, or employee, to violate the provisions of Section 31126.
(Added by Stats. 2022, Ch. 728, Sec. 10. (AB 676) Effective January 1, 2023.)
2023 California Code › Corporations Code - CORP › TITLE 4 - SECURITIES › DIVISION 5 - FRANCHISE INVESTMENT LAW › PART 4 - ENFORCEMENT › CHAPTER 1 - Civil Liability › Section 31300.

31300. Any person who offers or sells a franchise in violation of Section 31101, 31110, 31119, 31200, or 31202, or in violation of any provision of this division that provides an exemption from the provisions of Chapter 2 (commencing with Section 31110) of Part 2 or any portions of Part 2, shall be liable to the franchisee or subfranchisor, who may sue for damages caused thereby, and if the violation is willful, the franchisee may also sue for rescission, unless, in the case of a violation of Section 31200 or 31202, the defendant proves that the plaintiff knew the facts concerning the untruth or omission, or that the defendant exercised reasonable care and did not know, or, if he or she had exercised reasonable care, would not have known, of the untruth or omission.
(Amended by Stats. 2004, Ch. 458, Sec. 7. Effective September 10, 2004. Operative January 1, 2005, by Sec. 19 of Ch. 458.)
2023 California Code › Corporations Code - CORP › TITLE 4 - SECURITIES › DIVISION 5 - FRANCHISE INVESTMENT LAW › PART 4 - ENFORCEMENT › CHAPTER 1 - Civil Liability › Section 31301.

31301. Any person who violates Section 31201 shall be liable to any person (not knowing or having cause to believe that such statement was false or misleading) who, while relying upon such statement shall have purchased a franchise, for damages, unless the defendant proves that the plaintiff knew the facts concerning the untruth or omission or that the defendant exercised reasonable care and did not know, (or if he had exercised reasonable care would not have known) of the untruth or omission.
(Added by Stats. 1970, Ch. 1400.)
2023 California Code › Corporations Code - CORP › TITLE 4 - SECURITIES › DIVISION 5 - FRANCHISE INVESTMENT LAW › PART 4 - ENFORCEMENT › CHAPTER 1 - Civil Liability › Section 31302.

31302. Every person who directly or indirectly controls a person liable under Section 31300 or 31301, every partner in a firm so liable, every principal executive officer or director of a corporation so liable, every person occupying a similar status or performing similar functions, every employee of a person so liable who materially aids in the act or transaction constituting the violation, are also liable jointly and severally with and to the same extent as such person, unless the other person who is so liable had no knowledge of or reasonable grounds to believe in the existence of the facts by reason of which the liability is alleged to exist.
(Added by Stats. 1970, Ch. 1400.)
2023 California Code › Corporations Code - CORP › TITLE 4 - SECURITIES › DIVISION 5 - FRANCHISE INVESTMENT LAW › PART 4 - ENFORCEMENT › CHAPTER 1 - Civil Liability › Section 31302.5.

31302.5. (a) Any person who violates Section 31220 may be sued in the superior court in the county in which the defendant resides or where a franchise affected by the violation does business, for temporary and permanent injunctive relief and for damages, if any, and the costs of suit, including reasonable attorneys’ fees. A plaintiff shall not be required to allege or prove that actual damages have been suffered in order to obtain injunctive relief.
(b) No action shall be maintained to enforce any liability created under Section 31220 unless brought before the expiration of two years after the violation upon which it is based or the expiration of one year after the discovery by the plaintiff of the facts constituting such violation, whichever occurs first.
(Added by Stats. 1977, Ch. 510.)
2023 California Code › Corporations Code - CORP › TITLE 4 - SECURITIES › DIVISION 5 - FRANCHISE INVESTMENT LAW › PART 4 - ENFORCEMENT › CHAPTER 1 - Civil Liability › Section 31303.

31303. No action shall be maintained to enforce any liability created under Section 31300 unless brought before the expiration of four years after the act or transaction constituting the violation, the expiration of one year after the discovery by the plaintiff of the fact constituting the violation, or 90 days after delivery to the franchisee of a written notice disclosing any violation of Section 31110 or 31200, which notice shall be approved as to form by the commissioner, whichever shall first expire.
(Added by Stats. 1970, Ch. 1400.)
2023 California Code › Corporations Code - CORP › TITLE 4 - SECURITIES › DIVISION 5 - FRANCHISE INVESTMENT LAW › PART 4 - ENFORCEMENT › CHAPTER 1 - Civil Liability › Section 31304.

31304. No action shall be maintained to enforce any liability created under Section 31301 unless brought before the expiration of two years after the violation upon which it is based, expiration of one year after the discovery by the plaintiff of the facts constituting such violation, or 90 days after delivery to the franchisee of a written notice disclosing any violation of Section 31201 or 31202 which notice shall be approved as to form by the commissioner, whichever shall first expire.
(Added by Stats. 1970, Ch. 1400.)
2023 California Code › Corporations Code - CORP › TITLE 4 - SECURITIES › DIVISION 5 - FRANCHISE INVESTMENT LAW › PART 4 - ENFORCEMENT › CHAPTER 1 - Civil Liability › Section 31305.

31305. Every cause of action under this chapter survives the death of any person who might have been a plaintiff or defendant.
(Added by Stats. 1970, Ch. 1400.)
2023 California Code › Corporations Code - CORP › TITLE 4 - SECURITIES › DIVISION 5 - FRANCHISE INVESTMENT LAW › PART 4 - ENFORCEMENT › CHAPTER 1 - Civil Liability › Section 31306.

31306. Nothing in this chapter shall limit any liability which may exist by virtue of any other statute or under common law if this law were not in effect.
(Amended by Stats. 2022, Ch. 728, Sec. 11. (AB 676) Effective January 1, 2023.)
2023 California Code › Corporations Code - CORP › TITLE 4 - SECURITIES › DIVISION 5 - FRANCHISE INVESTMENT LAW › PART 4 - ENFORCEMENT › CHAPTER 2 - Powers of the Commissioner › Section 31400.

31400. (a) Whenever it appears to the commissioner that any person has engaged or is about to engage in any act or practice constituting a violation of any provision of this law or any rule or order hereunder, the commissioner may in the commissioner’s discretion bring an action, or the commissioner may request the Attorney General to bring an action in the name of the people of the State of California, in the superior court to enjoin the acts or practices or to enforce compliance with this law or any rule or order hereunder. Upon a proper showing a permanent or preliminary injunction, restraining order or writ of mandate shall be granted and a receiver or conservator may be appointed for the defendant or the defendant’s assets.
(b) If the commissioner determines it is in the public interest, the commissioner may include in any action authorized by subdivision (a) a claim for ancillary relief, including, but not limited to, a claim for restitution or disgorgement or damages on behalf of the persons injured by the act or practice constituting the subject matter of the action, and the court shall have jurisdiction to award that additional relief.
(Amended by Stats. 1986, Ch. 698, Sec. 5.)
2023 California Code › Corporations Code - CORP › TITLE 4 - SECURITIES › DIVISION 5 - FRANCHISE INVESTMENT LAW › PART 4 - ENFORCEMENT › CHAPTER 2 - Powers of the Commissioner › Section 31400.1.

31400.1. In any proceeding under Section 31400, the court may prohibit, conditionally or unconditionally, and permanently or for such period of time as it shall determine, any person who violated Section 31200, 31201, or 31202 from acting as an officer or director of any franchisor if the person’s conduct demonstrates unfitness to serve as an officer or director of the franchisor.
(Added by Stats. 2007, Ch. 101, Sec. 14. Effective January 1, 2008.)
2023 California Code › Corporations Code - CORP › TITLE 4 - SECURITIES › DIVISION 5 - FRANCHISE INVESTMENT LAW › PART 4 - ENFORCEMENT › CHAPTER 2 - Powers of the Commissioner › Section 31401.

31401. (a) The commissioner may in his discretion (1) make such public or private investigations within or outside of this state as he deems necessary to determine whether any person has violated or is about to violate any provision of this law or any rule or order hereunder or to aid in the enforcement of this law or in the prescribing of rules and forms hereunder, and (2) publish information concerning the violation of this law or any rule or order hereunder.
(b) For the purpose of any investigation or proceeding under this law, the commissioner or any officer designated by him may administer oaths and affirmations, subpoena witnesses, compel their attendance, take evidence, and require the production of any books, papers, correspondence, memoranda, agreements, or other documents or records which the commissioner deems relevant or material to the inquiry.
(c) In case of contumacy by, or refusal to obey a subpoena issued to, any person, the superior court, upon application by the commissioner, may issue to the person an order requiring him to appear before the commissioner, or the officer designated by him, there to produce documentary evidence, if so ordered, or to give evidence touching the matter under investigation or in question. Failure to obey the order of the court may be punished by the court as a contempt.
(d) No person is excused from attending and testifying or from producing any document or record before the commissioner, or in obedience to the subpoena of the commissioner or any officer designated by him, or in any proceeding instituted by the commissioner, on the ground that the testimony or evidence (documentary or otherwise) required of him may tend to incriminate him or subject him to a penalty or forfeiture; but no individual may be prosecuted or subjected to any penalty or forfeiture for or on account of any transaction, matter, or thing concerning which he is compelled, after validly claiming his privilege against self-incrimination, to testify or produce evidence (documentary or otherwise), except that the individual testifying is not exempt from prosecution and punishment for perjury or contempt committed in testifying.
(Added by Stats. 1970, Ch. 1400.)
2023 California Code › Corporations Code - CORP › TITLE 4 - SECURITIES › DIVISION 5 - FRANCHISE INVESTMENT LAW › PART 4 - ENFORCEMENT › CHAPTER 2 - Powers of the Commissioner › Section 31402.

31402. If, in the opinion of the commissioner, the offer of any franchise is subject to registration under this law and it is being, or it has been, offered for sale without the offer first being registered, the commissioner may order the franchisor or offeror of that franchise to desist and refrain from the further offer or sale of that franchise unless and until the offer has been duly registered under this law. If, after that order has been made, a request for a hearing is filed in writing within 60 days from the date of service of the order by the person to whom the order was directed, a hearing shall be held in accordance with Chapter 5 (commencing with Section 11500) of Part 1 of Division 3 of Title 2 of the Government Code, and the commissioner shall have all of the powers granted under that chapter. Unless that hearing is commenced within 15 business days after the request is made (or the person affected consents to a later date), the order shall be deemed rescinded.
If that person fails to file a written request for a hearing within 60 days from the date of service of the order, the order shall be deemed a final order of the commissioner and shall not be subject to review by any court or agency, notwithstanding Section 31501.
(Amended by Stats. 2004, Ch. 458, Sec. 8. Effective September 10, 2004. Operative January 1, 2005, by Sec. 19 of Ch. 458.)
2023 California Code › Corporations Code - CORP › TITLE 4 - SECURITIES › DIVISION 5 - FRANCHISE INVESTMENT LAW › PART 4 - ENFORCEMENT › CHAPTER 2 - Powers of the Commissioner › Section 31403.

31403. If, in the opinion of the commissioner, the offer of any franchise exempt from registration under this law is being or has been offered for sale without complying with Section 31201, or any other provision that provides an exemption from Chapter 2 (commencing with Section 31110) of Part 2, the commissioner may order the franchisor or offeror of the franchise to desist and refrain from the further offer or sale of the franchise unless and until the offer is made in compliance with this law. If, after that order has been made, a request for a hearing is filed in writing within 60 days from the date of service of the order by the person to whom the order was directed, a hearing shall be held in accordance with Chapter 5 (commencing with Section 11500) of Part 1 of Division 3 of Title 2 of the Government Code and the commissioner shall have all of the powers granted under that chapter. Unless that hearing is commenced within 15 business days after the request is made, or the person affected consents to a later date, the order shall be deemed rescinded.
If that person fails to file a written request for a hearing within 60 days from the date of service of the order, the order shall be deemed a final order of the commissioner and shall not be subject to review by any court or agency, notwithstanding Section 31501.
(Amended by Stats. 2004, Ch. 458, Sec. 9. Effective September 10, 2004. Operative January 1, 2005, by Sec. 19 of Ch. 458.)
2023 California Code › Corporations Code - CORP › TITLE 4 - SECURITIES › DIVISION 5 - FRANCHISE INVESTMENT LAW › PART 4 - ENFORCEMENT › CHAPTER 2 - Powers of the Commissioner › Section 31404.

31404. The commissioner may refer evidence that is available concerning any violation of this law or of any rule or order hereunder to the district attorney of the county in which the violation occurred, who may, with or without such a reference, institute appropriate criminal proceedings under this law. Upon request of the district attorney, the commissioner and the counsel, deputies, or assistants of the commissioner may assist the district attorney in presenting the law or facts at the trial.
(Amended by Stats. 1984, Ch. 936, Sec. 1.)
2023 California Code › Corporations Code - CORP › TITLE 4 - SECURITIES › DIVISION 5 - FRANCHISE INVESTMENT LAW › PART 4 - ENFORCEMENT › CHAPTER 2 - Powers of the Commissioner › Section 31405.

31405. (a) Any person who violates any provision of this law, or who violates any rule or order made under this law, shall be liable for a civil penalty not to exceed ten thousand dollars ($10,000) for each violation, which shall be assessed and recovered in a civil action brought in the name of the people of the State of California by the commissioner in any court of competent jurisdiction.
(b) As applied to the penalties for acts in violation of this division, the remedies provided by this section and by other sections of this division are not exclusive, and may be sought and employed in any combination to enforce the provisions of this division.
(c) No action shall be maintained to enforce any liability created under subdivision (a) unless brought before the expiration of four years after the act or transaction constituting the violation.
(Amended by Stats. 2004, Ch. 458, Sec. 10. Effective September 10, 2004. Operative January 1, 2005, by Sec. 19 of Ch. 458.)