Corporations Code section 31522
(a)
The commissioner may summarily issue a stop order suspending or revoking any registration under this part if the commissioner finds that the franchise broker has failed to comply with any of the provisions of this division or any rule issued by the commissioner pertaining to this division.(b)
A franchise broker shall not offer or sell a franchise in this state while a stop order issued pursuant to subdivision (a) is in effect.(c)
Upon issuance of a stop order, the commissioner shall promptly provide a notice to the franchise broker that contains all of the following:(1)
Notice that the stop order has been issued.(2)
The reasons for issuance of the stop order.(3)
Notice that the matter will be set for hearing within 15 business days after the commissioner receives a written request for hearing from the franchise broker, unless the franchise broker consents to a later date.(d)
The commissioner may modify, vacate, or extend a stop order until there has been a final determination of the matter at the hearing.(e)
A hearing under this section shall be conducted pursuant to Chapter 5 (commencing with Section 11500) of Part 1 of Division 3 of Title 2 of the Government Code, and the commissioner shall have all the powers granted under those provisions.(f)
If the franchise broker does not request a hearing within 30 days after receipt of the notice required by subdivision (c), the stop order shall remain in effect until it is modified or vacated by the commissioner.
Source:
Section 31522, https://leginfo.legislature.ca.gov/faces/codes_displaySection.xhtml?lawCode=CORP§ionNum=31522. (updated Jan. 1, 2025; accessed Jun. 30, 2025).
