Cal. Corporations Code § 31020

California · California Corporations Code · Status: effective · Effective 2025-01-01

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Citation: Cal. Corporations Code § 31020, California, version 1 as recorded 2026-07-25, yourstate.us, https://yourstate.us/provision/793672
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(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. (2) A subfranchisor or its officers, directors, or employees. (3) An area representative or its officers, directors, or employees. (4) An employee of an affiliate of a franchisor or subfranchisor. (5) A franchisee of the franchise offering being presented to a prospective franchisee, unless the franchisee operates a franchised broker business.