Any offer, sale, or other transfer of a franchise, or any interest in a franchise, to a resident of another state or any territory or foreign country, shall be exempted from the provisions of Chapter 2 (commencing with Section 31110) of this part, if all locations from which sales, leases or other transactions between the franchised business and its customers are made, or goods or services are distributed, are physically located outside this state.
Cal. Corp. Code § 31105
Exemptions
Known as the Franchise Investment Law
The act spans §§ 31000–31528 (118 sections).
Applied in 2 court decisions — leading case 637 F. Supp. 2d 712 - Samica Enterprises, LLC v. Mail Boxes Etc. USA, Inc. (2008)
Most recently applied in Stocco v. Gemological Institute of America, Inc. (September 2013)
Added by Stats. 1996, Ch. 477, Sec. 4
Official source: California Legislative Information. Reproduced from public-domain California statutes; confirm against the official source for the current text. Not legal advice.