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HomeCorporations CodeCh. 1§ 31102 Franchisee Resale Exemption

§ 31102 Franchisee Resale Exemption

Corporations Code·California
AI Summary·Official Text·Key Terms·Related Statutes·References
AI SummaryVerified

§ 31102 Franchisee Resale Exemption

Key Takeaways

  • •If a franchise owner sells their own franchise, they don’t have to follow the usual franchise sale rules.
  • •This only applies if the sale is done by the owner themselves, not the big company that owns the franchise brand.
  • •The big company can still say yes or no to the new buyer, but that doesn’t mean they’re involved in the sale.

Example

If you own a McDonald’s restaurant and want to sell it to your friend, you don’t have to follow all the normal franchise sale rules.

You can sell it yourself without McDonald’s helping, but they can still say no if they don’t like your friend.

AI-generated — May contain errors. Not legal advice. Always verify source.

Official Source
View on CA.gov

§ 31102 Franchisee Resale Exemption

The offer or sale of a franchise by a franchisee for his own account or the offer or sale of the entire area franchise owned by a subfranchisor for his own account, is exempted from the provisions of Section 31110 if the sale is not effected by or through a franchisor. A sale is not effected by or through a franchisor merely because a franchisor has a right to approve or disapprove a different franchisee. (Added by Stats. 1970, Ch. 1400.)

Last verified: January 23, 2026

Key Terms

franchiseesubfranchisorfranchisorSection 31110

Related Statutes

  • § 31020 Franchise Broker Definition Exemptions
  • § 31106 Franchise Transfer Experience Exemption
  • § 31107 Franchise Renewal Offer Exemption
  • § 31109 Franchise Sales Exemption
  • § 31304 Franchise Violation Lawsuit Deadlines

References

  • Official text at leginfo.legislature.ca.gov
  • California Legislature. Corporations Code. Section 31102.
View Official Source