Franchise Investment Law Definitions

Part 1 of Division 5 of Title 4 deals with definitions contained in the California Franchise Investment Law.

Section 31000 names this division the “Franchise Investment Law.”

Section 31001 contains legislative findings and declarations.

Section 21001.1 contains a statement of legislative intent. The commissioner is required to focus on reviewing application information posing the most risk to prospective franchisees with emphasis on risks associated with the franchisor’s financial condition, the franchisor’s compliance record, and significant deficiencies with the franchisor’s application.

When reviewing franchise filings under this section, the commissioner is required to concentrate on helping to prevent misappropriation, mismanagement, and misrepresentation in connection with the offer or sale of any franchise subject to this division.

Section 31002 applies the definitions in this part to this division.

Section 31003 defines the term “advertisement.”

Section 31003.5 defines the term “business days.”

Section 31004 defines the term “commissioner.”

Section 31005 defines the term “franchise.”

Section 31005.5 defines the terms “franchisor,” “franchisee,” “refiner,” “petroleum distributor,” “petroleum retailer,” “marketing premises,” “leased marketing premises,” “contract,” “trademark,” “fuel,” “affiliate,” and “petroleum corporation.”

Section 31006 defines the term “franchisee.”

Section 31007 defines the term “franchisor.”

Section 31008 defines the term “area franchise.”

Section 31008.5 defines the term “subfranchise.”

Section 31009 defines the term “subfranchisor.”

Section 31011 defines the term “franchise fee.”

Section 31012 defines the terms “fraud” and “deceit.”

Section 31013 provides that an offer or sale of a franchise is made in this state when an offer to sell is made in this state, or an offer to buy is accepted in this state, or if the franchise business is intended to or will be operated in this state.

Section 31014 defines the term “order.”

Section 31015 defines the term “person.”

Section 31016 defines the term “publish.”

Section 31017 defines the term “rule.”

Section 31018 defines the terms “sale,” “sell,” “offer, and “offer to sell.”

Section 31019 defines the term “state.”

Section 31020 defines the term “franchise broker.”