Corporations Code section 31107

There shall be exempted from the provisions of Chapter 2 (commencing with Section 31110) of this part, any offer (but not the sale) by a franchisor of a franchise while an application for renewal or amendment is pending if the prospective franchisee receives all of the following:

(a)

The franchise disclosure document and its exhibits as filed with the commissioner with the application for renewal or amendment.

(b)

A written statement from the franchisor that (1) the filing has been made but is not effective, (2) the information in the franchise disclosure document and exhibits has not been reviewed by the commissioner, and (3) the franchisor will deliver to the prospective franchisee an effective franchise disclosure document and exhibits at least 14 days prior to execution by the prospective franchisee of a binding agreement or payment of any consideration to the franchisor, or any person affiliated with the franchisor, whichever occurs first, showing all material changes from the franchise disclosure document and exhibits received by the prospective franchisee under subdivision (a) of this section.

(c)

The franchise disclosure document and exhibits in accordance with paragraph (3) of subdivision (b) of this section.

Source: Section 31107, https://leginfo.­legislature.­ca.­gov/faces/codes_displaySection.­xhtml?lawCode=CORP§ionNum=31107.­ (accessed May 9, 2025).

Last Updated

Apr. 24, 2025

§ 31107’s source at ca​.gov