§ 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.

(Added by Stats. 2024, Ch. 518, Sec. 1. (SB 919) Effective January 1, 2025.)