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HomeCorporations CodeCh. 2§ 31210 Franchise Sale Licensing Requirements

§ 31210 Franchise Sale Licensing Requirements

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

§ 31210 Franchise Sale Licensing Requirements

Key Takeaways

  • •You can't sell a franchise in California unless you follow special rules.
  • •You must be listed in a special document filed with the state, or have a special license.
  • •Some sales don't need these rules, but most do.
  • •If you break this rule, you can get in big trouble.

Example

If you try to sell a McDonald's franchise to your friend without being listed in the state's special document or having the right license, you're breaking the law.

The law says you need to be either listed in a special document or have a special license to sell a franchise. If you don't, you can't sell it.

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

Official Source
View on CA.gov

§ 31210 Franchise Sale Licensing Requirements

It is unlawful for any person to effect or attempt to effect a sale of a franchise in this state, except in transactions exempted under Chapter 1 (commencing with Section 31100) of Part 2 of this division, unless that person is any of the following: (a) Identified in Item 2 of a franchise disclosure document submitted with an application or amended application filed with the commissioner pursuant to Part 2 (commencing with Section 31100) of this division. (b) Licensed by the Department of Real Estate as a real estate broker or real estate salesperson. (c) Licensed by the commissioner as a broker-dealer or agent pursuant to the Corporate Securities Law of 1968. (d) Registered as a franchise broker pursuant to Part 7 (commencing with Section 31520). (Amended by Stats. 2024, Ch. 518, Sec. 2. (SB 919) Effective January 1, 2025.)

Last verified: January 23, 2026

Key Terms

unlawfulsale of a franchiseexempted under Chapter 1franchise disclosure documentlicensed by the Department of Real Estatebroker-dealer or agentregistered as a franchise broker

Related Statutes

  • § 27101 Security Owner Representation Fraud
  • § 31114 Franchise Disclosure Document Requirements
  • § 31119 Franchise Sale Disclosure
  • § 12350 Board Of Directors Authority
  • § 12351 Board Meeting Notice Requirements

References

  • Official text at leginfo.legislature.ca.gov
  • California Legislature. Corporations Code. Section 31210.
View Official Source