Section 31020.
Cal. Corporations Code - CORP § 31020.
in effect(a)
“Franchise broker” means a person who directly or indirectly engages in the business of the offer or sale of a franchise, regardless of the title used by the person or any organization with which they are affiliated, and receives or is promised a fee, commission, or other form of consideration from a franchisor, subfranchisor, franchisee, or
affiliate of a franchisor, subfranchisor, or franchisee. Common titles franchise brokers use include, but are not limited to, franchise seller, broker network, broker organization, franchise sales organization, consultant, and coach.
(b)
A “franchise broker” does not include any of the following:
(1)
A franchisor or its officers, directors, or employees.
(2)
A subfranchisor or its officers, directors, or employees.
(3)
An area representative or its officers, directors, or employees.
(4)
An employee of an affiliate of a franchisor or subfranchisor.
(5)
A franchisee of the franchise offering being presented to a prospective franchisee, unless the franchisee operates a franchised broker business.
Source: CA Legislative Counsel Bulk DataURL: https://downloads.leginfo.legislature.ca.gov/pubinfo_2025.zipFetched: 6/27/2026