Cal. CORP § 31020
This is the official text of Cal. CORP § 31020, part of California’s Corporations Code — governs the formation and operation of corporations, LLCs, and partnerships, and regulates securities.
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Official statutory 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.
(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.
(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.
Status: in_force · Read it on the official government site
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