Corporations Code section 31527

For purposes of this part, the Uniform Franchise Broker Disclosure Document shall contain all of the following information:

(a)

A franchise broker cover page, as created and modified by the commissioner, that contains standardized language regarding franchise brokers, including, but not limited to, all of the following:

(1)

The types of sellers.

(2)

The franchise brokers’ role in the franchise sales process.

(3)

Services a franchise broker might provide.

(4)

Different ways a franchise broker might be compensated for its services.

(5)

Examples of questions a prospective franchisee might ask a franchise broker.

(b)

All of the following information about the franchise broker:

(1)

Legal name.

(2)

Trade name.

(3)

Year and state of formation.

(4)

Principal place of business.

(5)

Owners.

(6)

Directors and officers.

(7)

Contact information.

(8)

The franchise broker’s broker network or franchise sales organization.

(c)

The franchise broker’s professional experience during the last five years, including, but not limited to, employers, principal positions, each position’s location, and the month and year of each position’s start date and end date.

(d)

Administrative, civil, or criminal actions alleging that the franchise broker, or an owner, officer, or director of the franchise broker, violated any franchise, antitrust, or securities law, or committed fraud, unfair or deceptive practices, or similar violations, whether pending or resolved, within the last five years.

(e)

The industries of the brands the franchise broker represents and how many brands within each industry the franchise broker represents.

(f)

A description of the services performed by the franchise broker.

(g)

How the franchise broker is compensated, including, but not limited to, how the amount of any consideration the franchise broker receives is calculated.

(h)

Whether a broker network, broker organization, or franchise sales organization may receive any additional consideration.

(i)

The brands for whom the franchise broker sold a franchise anywhere in the United States or its territories during the last calendar year for which the franchise broker received or is entitled to receive compensation, including, but not limited to, the total number of units sold for the brand.

Source: Section 31527, https://leginfo.­legislature.­ca.­gov/faces/codes_displaySection.­xhtml?lawCode=CORP§ionNum=31527.­ (accessed May 12, 2025).

Last Updated

May 12, 2025

§ 31527’s source at ca​.gov