California · Corporations Code

CORP §31020: (a) “Franchise broker” means a person who directly or indirectly engages in the business of the offer or sale of a franchise, regardless of the title used by the person or any organization with which

What this law says, in plain English

A 'franchise broker' is defined as any person who directly or indirectly offers or sells franchises, regardless of their title or organizational affiliation.

Read the full statutory text

(a) “Franchise broker” means a person who directly or indirectly engages in the business of the offer or sale of a franchise, regardless of the title used by the person or any organization with which they are affiliated, and receives or is promised a fee, commission, or other form of consideration from a franchisor, subfranchisor, franchisee, or affiliate of a franchisor, subfranchisor, or franchisee. Common titles franchise brokers use include, but are not limited to, franchise seller, broker network, broker organization, franchise sales organization, consultant, and coach. (b) A “franchise broker” does not include any of the following: (1) A franchisor or its officers, directors, or employees. (2) A subfranchisor or its officers, directors, or employees. (3) An area representative or its officers, directors, or employees. (4) An employee of an affiliate of a franchisor or subfranchisor. (5) A franchisee of the franchise offering being presented to a prospective franchisee, unless the franchisee operates a franchised broker business.

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