Business and Professions Code 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 claims under this chapter, provided that:

(a)

The standards applied in such arbitration are not less than the requirements specified in this chapter; and

(b)

The arbitrator or arbitrators employed in such arbitration are chosen from a list of impartial arbitrators supplied by the American Arbitration Association or other impartial person.

Source: Section 20040, https://leginfo.­legislature.­ca.­gov/faces/codes_displaySection.­xhtml?lawCode=BPC§ionNum=20040.­ (updated Oct. 1, 1980; accessed Jun. 24, 2026).

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Verified:
Jun. 24, 2026

§ 20040's source at ca​.gov