As used in this article, “franchise” means a franchise granted by a public entity and all the rights and privileges thereof, other than the franchise of being a corporation.
Miscellaneous Creditors’ RemediesEnforcement Against Franchise
Section § 708.910
This section defines what is meant by 'franchise' in the context of this law. It refers to a franchise that is granted by a government body, along with all related rights and privileges. However, it does not include the franchise rights that come from being a corporation.
public entity government franchise rights and privileges
Section § 708.920
This law allows a court to decide whether to use a person's franchise, which could be a business license or similar right, to pay off a debt they owe after a legal judgment. The court will consider things like the nature of the franchise and its potential value before doing so. If the court decides it's appropriate, they can manage this process through various methods, such as selling the franchise or assigning its profits to pay the debt. The court can also set rules on how this process is carried out, like where a sale should happen or how proceeds should be collected.
(a)CA Civil Procedure Code § 708.920(a) The court may, in its discretion, order a franchise applied to the satisfaction of a money judgment upon application by the judgment creditor made on noticed motion. The notice of motion shall be served on the judgment debtor and the public entity that granted the franchise. Service shall be made personally or by mail. In exercising its discretion, the court shall determine whether application of the franchise to the satisfaction of the judgment is proper taking into account all the circumstances of the case, including but not limited to the nature of the franchise, whether the franchise is by its terms transferable, and
the likelihood that application of the franchise to the satisfaction of the judgment will yield a substantial amount.
(b)CA Civil Procedure Code § 708.920(b) If the court orders application of the franchise to the satisfaction of the judgment, application shall be by such means as appears proper to the court, including but not limited to sale of the franchise, assignment of the franchise or proceeds of the franchise, or appointment of a receiver. The court may include in its order, or make additional orders containing, provisions to effectuate the application of the franchise to the satisfaction of the judgment, including but not limited to provisions relating to the place of sale of the franchise, possession of the property of the judgment debtor necessary for the exercise of the franchise, receipt of proceeds of the franchise, recovery of penalties imposed by law and recoverable for injury to the franchise or for damages or other cause, and the judgment debtor’s powers, duties,
and liability for penalties and forfeitures.
franchise satisfaction judgment debtor judgment creditor
Section § 708.930
This law explains that if you're trying to use a franchise to pay off a court-ordered money judgment, you must still follow the rules for transferring or selling that franchise. This includes getting any required approvals from government bodies like the Public Utilities Commission and following all legal regulations.
Notwithstanding any other provision of this article, an order for application of a franchise to the satisfaction of a money judgment is subject to all applicable laws governing sale, transfer, or other actions concerning the franchise, including but not limited to any necessary approvals by the Public Utilities Commission or local public entities and compliance with statutory or administrative regulations.
franchise application money judgment franchise transfer
