Business and Professions Code section 21149

Notwithstanding the terms of any franchise, the franchisor may not prohibit or prevent the sale, transfer, or assignment of the franchise to a corporation if both of the following conditions are satisfied:

(a)

The franchisee has a controlling interest in the corporation.

(b)

The franchisee offers in writing to personally guarantee the corporation’s performance of its obligations under the franchise.

Source: Section 21149, https://leginfo.­legislature.­ca.­gov/faces/codes_displaySection.­xhtml?lawCode=BPC§ionNum=21149.­ (updated Jan. 1, 1980; accessed Jul. 7, 2025).

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Jul. 7, 2025

§ 21149's source at ca​.gov