If you're a franchise broker in California, you must register with the state by filling out certain documents online. This includes a specific disclosure document verified by you, additional required paperwork, a registration fee, and copies of certain financial protections like insurance policies. Your registration becomes official once everything is submitted correctly and fees are paid. Keep in mind, this registration only lasts until the end of the calendar year.

If you're a registered franchise broker in California, you need to let the commissioner know in writing right away if there's any important change in the information from your latest disclosure document. The commissioner can set rules on what's considered an important change and when you need to update your disclosure document. If the commissioner finds that these changes mean you're not following the rules, they can issue a stop order, essentially pausing your activities.

This law allows the commissioner to quickly place a stop order on a franchise broker's registration if they do not follow the rules. This means the broker can't sell franchises in California while the stop order is active. If a stop order is issued, the broker gets a notice explaining why and can request a hearing to challenge it within 15 business days. The order might be changed or continued until a final decision is made. If the broker doesn't ask for a hearing within 30 days, the stop order stays until the commissioner changes it.

If you're a franchise broker selling a franchise in California, you must keep detailed records of the offer for five years.

This law makes it illegal for a franchise broker to offer or sell a franchise in California unless they are registered. The rule applies if the potential buyer lives in California, their main office is in California, or the franchise itself will operate in California.

If you're a franchise broker, you can't talk with someone about buying into a franchise unless you first give them a specific disclosure document. You can send this document electronically, but you must follow any rules set by the commissioner.

This law requires a document called the Uniform Franchise Broker Disclosure Document to be filled out by franchise brokers. It must include detailed information about the broker, such as their name, business details, past experience, and any legal issues they've faced. It should also describe the services they offer, how they get paid, which industries they work in, and details about the brands they represent. This document helps potential franchisees understand who they're dealing with and what to expect in the franchise dealing process.

This law will only take effect if the state budget includes specific funding for it. It will start either on July 1, 2026, or one year after the funding is approved, whichever comes later.