Franchise Investment Law generally provides for regulation of offer, sale of franchises.
Requires CAL DPFI to maintain risk-based process of reviewing franchise applications, focus on risks with financial condition, compliance record, application deficiencies.
Law requires specific written disclosures, authorizes sale of franchise be exempt from specified requirements if franchisor meets certain disclosure, notice requirements.
Bill added as exception to existing law provisions person registered as franchise broker.
Also, made a franchise broker who offers or sells a franchise in violation of specified provisions liable to the franchisee or franchisor, who may sue for damages.
Establish specified fees for application for registration, amendment as franchise broker.
Legislative History
On Jan. 10, 2024, bill introduced into Senate; on May 22, 2024, bill passed Senate.
On May 23, 2024, bill introduced in Assembly; on Aug. 26, 2024, bill passed Assembly.
On Aug. 28, 2024, Senate concurred with Assembly amendments; ordered to enrolling
On Sep. 4, 2024, bill enrolled, and presented to governor for review and approval.
Effectiveness
If enacted, bill will become effective as of Jan. 1, 2025.
