LawWiki
HomeCodesSearchGlossaryAPIAbout
LawWiki

Plain English summaries of California law with zero-hallucination AI. Every summary is verified against official source text.

Product

  • Search
  • Codes
  • About

Legal

  • Privacy Policy
  • Terms of Service
  • Disclaimer

© 2026 LawWiki. All rights reserved.

HomeCorporations CodeCh. 2§ 31212 Franchise Discrimination Protection

§ 31212 Franchise Discrimination Protection

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

§ 31212 Franchise Discrimination Protection

Key Takeaways

  • •A company selling franchises (like a fast-food chain) can't say no to someone just because of their race, religion, gender, or where they live.
  • •They also can't refuse to lend money or help just because of those reasons.
  • •But they *can* have special programs to help people who don’t have much money or experience to start a franchise.

Example

A woman wants to open a burger franchise in her neighborhood, but the company says no because most people there are women.

The company can’t do that. They have to treat her the same as anyone else unless they have a special program to help people who usually don’t get franchises.

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

Official Source
View on CA.gov

§ 31212 Franchise Discrimination Protection

No franchisor shall refuse to grant a franchise, or refuse to provide financial assistance, to a franchisee or prospective franchisee that has been granted or provided to other similarly situated franchisees or prospective franchisees based solely on any characteristic of the franchisee or prospective franchisee, or any characteristic of the composition of the neighborhood or geographic area where the franchise is located or the proposed franchise would be located, listed or defined in subdivision (b) or (e) of Section 51 of the Civil Code. Nothing in this section shall be interpreted to prohibit a franchisor from granting a franchise to a prospective franchisee as part of a program to make franchises available to persons lacking the capital, training, business experience, or other qualifications ordinarily required of franchisees, or any other affirmative action program adopted by the franchisor. (Added by Stats. 2022, Ch. 728, Sec. 9. (AB 676) Effective January 1, 2023.)

Last verified: January 23, 2026

Key Terms

franchisorfranchiseeaffirmative action programSection 51 of the Civil Code

Related Statutes

  • § 31112 Application Amendment Verification
  • § 31123 Franchisor Material Change Notification
  • § 31126 Existing Franchise Transfer Application
  • § 31400.1 Franchisor Officer Director Prohibition
  • § 31001 Franchise Sale Disclosure Requirements

References

  • Official text at leginfo.legislature.ca.gov
  • California Legislature. Corporations Code. Section 31212.
View Official Source