BlackletterCalifornia law

Business and Professions Code § 21149

CHAPTER 7.8. Franchise Dealers Fair Practices

Current as of September 28, 2026Bus. & Prof. Code, § 21149Official source ↗

Added by Stats. 1980, Ch. 698, Sec. 2.

Notwithstanding the terms of any franchise, the franchisor may not prohibit or prevent the sale, transfer, or assignment of the franchise to a corporation if both of the following conditions are satisfied:

(a) The franchisee has a controlling interest in the corporation.

(b) The franchisee offers in writing to personally guarantee the corporation’s performance of its obligations under the franchise.