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HomeCorporations CodeCh. 2§ 31114 Franchise Disclosure Document Requirements

§ 31114 Franchise Disclosure Document Requirements

Corporations Code·California
AI Summary·Official Text·Key Terms·Related Statutes·References
AI SummaryVerified

§ 31114 Franchise Disclosure Document Requirements

Key Takeaways

  • •If you want to register a franchise, you must provide a special document with important details about it.
  • •This document must include all the key info from your registration application, plus anything extra the commissioner asks for.
  • •The document must clearly say in big, bold letters that just because it’s registered doesn’t mean the commissioner approves or recommends it.

Example

If you want to open a fast-food franchise, like a burger joint, you have to fill out a form with all the important details about your business.

You have to include things like how much money you need to start, what the rules are for running the franchise, and any risks involved. The form must also have a big, bold warning saying that just because you registered, it doesn’t mean the government says it’s a good idea.

AI-generated — May contain errors. Not legal advice. Always verify source.

Official Source
View on CA.gov

§ 31114 Franchise Disclosure Document Requirements

The application for registration shall be accompanied by a proposed franchise disclosure document, which shall contain the material information set forth in the application for registration, as specified by rule of the commissioner, and such additional disclosures as the commissioner may require. The franchise disclosure document shall recite in bold type of not less than 10-point type that registration does not constitute approval, recommendation, or endorsement by the commissioner. (Amended by Stats. 2013, Ch. 334, Sec. 4. (SB 537) Effective January 1, 2014.)

Last verified: January 23, 2026

Key Terms

franchise disclosure documentregistrationcommissionerapprovalrecommendationendorsement

Related Statutes

  • § 25114 Qualification Validity Period
  • § 25210 Broker-Dealer Licensing Requirements
  • § 25211 Broker-Dealer Certification Requirements
  • § 25212.1 Broker-Dealer Certificate Revocation
  • § 25213 Broker-Dealer Discipline Authority

References

  • Official text at leginfo.legislature.ca.gov
  • California Legislature. Corporations Code. Section 31114.
View Official Source