The Franchise
Investment Law requires that a prospective buyer receive
detailed information about a franchise opportunity. Unless
specifically exempt, every franchisor who offers a franchise
for sale in California must register the sale with the
Department of Corporations (DOC), and a permit from the
DOC may be required in advance of such offering.
A person authorized to sell certain defined non-exempt
franchises is a person:
• identified in an application
registered with the Corporations Commissioner for an offering
of a franchise in California;
• licensed as
a real estate broker or as a salesperson supervised by
a broker; or,
• licensed by the Corporations
Commissioner as a broker-dealer or agent under the Corporate
Securities Law of l968.
Corporations Code Section 31210
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