CHAPTER 5.5. Franchise Relations [20000. - 20044.]

Chapter 5.5 added by Stats. 1980, Ch. 1355, Sec. 1.

§§ 20000–20044 · 30 sections

1. ARTICLE 1. Definitions §§ 20000–20010 · 11 sections

   • § 20000 This chapter shall be known and may be referred to as the California Franchise Relations Act.
   • § 20001 As used in this chapter, “franchise” means a contract or agreement, either expressed or implied, whether oral or written, between two or more persons by which:…
   • § 20002 A “franchisee” is a person to whom a franchise is granted.
   • § 20003 A “franchisor” is a person who grants or has granted a franchise.
   • § 20004 “Area franchise” means any contract or agreement between a franchisor and a subfranchisor whereby the subfranchisor is granted the right, for consideration…
   • § 20005 A “subfranchisor” is a person to whom an area franchise is granted.
   • § 20006 “Franchise” includes “area franchise.”
   • § 20007 “Franchise fee” means any fee or charge that a franchisee or subfranchisor is required to pay or agrees to pay for the right to enter into a business under a…
   • § 20008 “Person” means an individual, a corporation, a partnership, a limited liability company, a joint venture, an association, a joint stock company, a trust or an…
   • § 20009 The regulations, releases, guidelines, and interpretive opinions of the Commissioner of Financial Protection and Innovation under the Franchise Investment Law…
   • § 20010 Any condition, stipulation or provision purporting to bind any person to waive compliance with any provision of this law is contrary to public policy and void.
2. ARTICLE 2. Jurisdiction § 20015 · 1 section

   • § 20015 (a) The provisions of this chapter apply to any franchise when either the franchisee is domiciled in this state or the franchised business is or has been…
3. ARTICLE 3. Termination §§ 20020–20022 · 3 sections

   • § 20020 Except as otherwise provided by this chapter, no franchisor may terminate a franchise prior to the expiration of its term, except for good cause. Except as…
   • § 20021 If during the period in which the franchise is in effect, there occurs any of the following events which is relevant to the franchise, immediate notice of…
   • § 20022 (a) Except as provided in this section, upon a lawful termination or nonrenewal of a franchisee, the franchisor shall purchase from the franchisee, at the…
4. ARTICLE 4. Nonrenewal §§ 20025–20026 · 2 sections

   • § 20025 No franchisor may fail to renew a franchise unless such franchisor provides the franchisee at least 180 days prior written notice of its intention not to…
   • § 20026 Nothing in Section 20025 shall prohibit a franchisor from offering or agreeing before expiration of the current franchise term to extend the term of the…
5. ARTICLE 4.4. Transfers §§ 20027–20029 · 3 sections

   • § 20027 (a) No franchisor shall deny the surviving spouse, heirs, or estate of a deceased franchisee or the majority shareholder of the franchisee the opportunity to…
   • § 20028 (a) It is unlawful for a franchisor to prevent a franchisee from selling or transferring a franchise, all or substantially all of the assets of the franchise…
   • § 20029 (a) The franchisee shall, prior to the sale, assignment, or transfer of a franchise, all or substantially all of the assets of a franchise business, or a…
6. ARTICLE 5. Notices § 20030 · 1 section

   • § 20030 All notices of termination or nonrenewal required by this chapter: (a) Shall be in writing; (b) Shall be posted by registered, certified or other receipted…
7. ARTICLE 6. Remedies §§ 20035–20037 · 3 sections

   • § 20035 (a) In the event a franchisor terminates or fails to renew a franchisee, in violation of this chapter, the franchisee shall be entitled to receive from the…
   • § 20036 The franchisor may offset against any remedies made pursuant to Section 20035 any prior recovery by the franchisee pursuant to Section 20022 and any sums owed…
   • § 20037 Except as expressly provided herein, nothing in this article shall abrogate the right of a franchisee to sue under any other law.
8. ARTICLE 7. Arbitration § 20040 · 1 section

   • § 20040 Nothing contained in this chapter shall limit the right of a franchisor and franchisee to agree before or after a dispute has arisen to binding arbitration of…
9. ARTICLE 8. Venue of Disputes § 20040.5 · 1 section

   • § 20040.5 A provision in a franchise agreement restricting venue to a forum outside this state is void with respect to any claim arising under or relating to a franchise…
10. ARTICLE 9. Miscellaneous Provisions §§ 20041–20044 · 4 sections

    • § 20041 (a) Except as provided in subdivision (b), the provisions of this chapter shall apply only to franchises granted or renewed on or after January 1, 1981, or to…
    • § 20042 The provisions of this chapter shall not apply to franchises governed by the provisions of Article 4 (commencing with Section 3060) of Chapter 6 of Division 2…
    • § 20043 If any provision of this chapter or the application thereof to any person or circumstances is held invalid, such invalidity shall not affect other provisions…
    • § 20044 A franchisor is prohibited from modifying a franchise agreement, or requiring a general release, in exchange for any assistance related to a declared state or…