§ 31201 Franchise Fraud Prohibition

• •You can't lie or leave out important facts when selling a franchise in this state.
• •This applies to anything you say or write about the franchise.
• •The law wants to make sure people aren't tricked into buying a franchise.

Someone tries to sell you a fast-food franchise and says you'll make $1 million in the first year, but they don't tell you that most owners lose money.

This is breaking the law because they lied about how much money you'd make and didn't tell you the truth about the risks.