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.­ (updated Jan. 1, 2025; accessed Jun. 9, 2025).

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Verified:
Jun. 9, 2025

§ 31020’s source at ca​.gov