Corporations Code section 31020
(a)
“Franchise broker” means a person who directly or indirectly engages in the business of the offer or sale of a franchise, regardless of the title used by the person or any organization with which they are affiliated, and receives or is promised a fee, commission, or other form of consideration from a franchisor, subfranchisor, franchisee, or affiliate of a franchisor, subfranchisor, or franchisee. Common titles franchise brokers use include, but are not limited to, franchise seller, broker network, broker organization, franchise sales organization, consultant, and coach.(b)
A “franchise broker” does not include any of the following:(1)
A franchisor or its officers, directors, or employees.(2)
A subfranchisor or its officers, directors, or employees.(3)
An area representative or its officers, directors, or employees.(4)
An employee of an affiliate of a franchisor or subfranchisor.(5)
A franchisee of the franchise offering being presented to a prospective franchisee, unless the franchisee operates a franchised broker business.
Source:
Section 31020, https://leginfo.legislature.ca.gov/faces/codes_displaySection.xhtml?lawCode=CORP§ionNum=31020. (accessed May 19, 2025).