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Cal. Bus. & Prof. Code § 21149

Franchise Dealers Fair Practices

Added by Stats. 1980, Ch. 698, Sec. 2.

Notwithstanding the terms of any franchise, the franchisor may not prohibit or prevent the sale, transfer, or assignment of the franchise to a corporation if both of the following conditions are satisfied:

(a) The franchisee has a controlling interest in the corporation.

(b) The franchisee offers in writing to personally guarantee the corporation’s performance of its obligations under the franchise.

Official source: California Legislative Information. Reproduced from public-domain California statutes; confirm against the official source for the current text. Not legal advice.