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HomeCorporations CodeCh. 2§ 31116 Automatic Franchise Registration Effectiveness

§ 31116 Automatic Franchise Registration Effectiveness

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

§ 31116 Automatic Franchise Registration Effectiveness

Key Takeaways

  • •If you want to sell a franchise in California, you have to register it first.
  • •The registration usually starts working 30 business days after you send in all the right papers and fees.
  • •If the government doesn't stop your registration, it automatically becomes okay to sell your franchise after that time.
  • •There were some special rules for people who applied in early 1971, but those dates don't matter anymore.

Example

You want to open a new burger joint and sell franchises so other people can open the same burger joint.

You have to fill out all the right forms, pay the fee, and send them to the government. If they don't say 'no' within 30 business days, you can start selling your franchise.

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

Official Source
View on CA.gov

§ 31116 Automatic Franchise Registration Effectiveness

(a) Except as provided in subdivision (b), if no stop order under Section 31115 is in effect under this law, registration of the offer of franchises automatically becomes effective at 12 p.m., California time, of the 30th business day after the filing of a complete application for registration or the last preeffective amendment thereto, or at an earlier time that the commissioner determines. (b) With respect to any application for registration or the last amendment thereto filed between January 1, 1971, and March 15, 1971, if no stop order under Section 31115 is in effect under this law, registration becomes effective on April 15, 1971; with respect to any application filed after March 15, 1971, and before May 10, 1971, if no stop order under Section 31115 is in effect under this law, registration becomes effective on June 1, 1971, or the 15th business day after the filing, whichever is the later, or at an earlier time that the commissioner determines. (c) For purposes of this section, “complete application” means an application that contains the appropriate filing fee, Uniform Franchise Disclosure Document, and all additional exhibits, including financial statements in conformity with regulations of the commissioner. “Preeffective amendment” means an amendment to an application that is filed before the effective date of the registration of the sale of franchises. (Amended by Stats. 2015, Ch. 303, Sec. 48. (AB 731) Effective January 1, 2016.)

Last verified: January 23, 2026

Key Terms

registrationapplicationamendmentoffercommissionregulationuniform franchise disclosuredocument

Related Statutes

  • § 31125 Material Modification Franchise Disclosure
  • § 16959 Foreign Partnership Registration Requirements
  • § 14312 Mutual Water Company Requirements
  • § 28110 License Application Fees
  • § 15909.06 Foreign Partnership Registration Amendments

References

  • Official text at leginfo.legislature.ca.gov
  • California Legislature. Corporations Code. Section 31116.
View Official Source