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.
Last Updated

Apr. 24, 2025

§ 21149’s source at ca​.gov