Remedies - Franchise Relations - Business & Professions - CA

Section § 20035

If a franchisor wrongly ends or chooses not to renew a franchise, the franchisee can get compensated for the fair market value of their business and any other damages. A court can also stop such violations by granting temporary or permanent orders.

(a) In the event a franchisor terminates or fails to renew a franchisee, in violation of this chapter, the franchisee shall be entitled to receive from the franchisor the fair market value of the franchised business and franchise assets and any other damages caused by the violation of this chapter.

(b) A court may grant preliminary and permanent injunctions for a violation or threatened violation of this chapter.

franchisor termination franchisee compensation fair market value

Section § 20036

This law allows a franchisor to reduce the amount they have to pay a franchisee by accounting for any money the franchisee has already received under a different section and any debts the franchisee owes to the franchisor or its associated companies.

The franchisor may offset against any remedies made pursuant to Section 20035 any prior recovery by the franchisee pursuant to Section 20022 and any sums owed the franchisor or its subsidiaries by the franchisee pursuant to the franchise or any ancillary agreement.

franchisor franchisee offset

Section § 20037

This law section ensures that a franchisee can still use other legal avenues to file a lawsuit, unless specifically mentioned otherwise in this article.

Except as expressly provided herein, nothing in this article shall abrogate the right of a franchisee to sue under any other law.

franchisee rights legal avenues lawsuit