Franchise Investment Law

Title 4, Division 5 of the Corporations Code deals with the Franchise Investment Law in California. Part 6 contains general provisions.

Section 31510 provides that the commissioner in his discretion may honor requests from interested persons for interpretive opinions.

Section 31511 specifies that no provision of this law imposing any liability applies to any act done or omitted in good faith in conformity with any rule, form, order, or any written interpretive opinion of the commissioner, or any opinion of the Attorney General, notwithstanding that the rule, form, order, or written interpretive opinion may later be amended or rescinded or be determined by judicial or other authority to be invalid for any reason.

Section 31512 states that any condition, stipulation or provision purporting to bind any person acquiring any franchise to waive compliance with any provision of this law or any rule or order hereunder is void.

Section 31512.1 says that any provision of a franchise agreement, franchise disclosure document, acknowledgment, questionnaire, or other writing, including any exhibit thereto, disclaiming or denying any of the four specified conditions is deemed contrary to public policy and is void and unenforceable.

Section 31513 states that, whenever a person is entitled under this law to a hearing, a formal hearing before the Department of Financial Protection and Innovation may be substituted with the consent of the person and of the commissioner for a hearing before an independent hearing officer.

Section 31514 provides a severability clause.

Section 31515 explains that prior law exclusively governs all suits, actions, prosecutions or proceedings which are pending or may be initiated on the basis of facts or circumstances occurring before the effective date of this law.