§ 31123 Franchisor Material Change Notification

• •If a company that sells franchises (like a fast-food chain) changes important info about their business, they must tell the government right away.
• •They have to send this update in writing, like a letter or form, to the person in charge (the commissioner).
• •The government can decide what counts as an 'important change' and might ask for a new detailed plan (offering prospectus) with the update.

A pizza franchise decides to charge franchise owners a new fee every month that wasn’t there before.

The pizza company must tell the government about this new fee because it’s a big change. They have to write a letter or fill out a form to update their original plan. If the government thinks it’s a really big deal, they might ask for a whole new plan explaining everything again.