What California Business and Professions Code sections provide rights concerning termination, transfer, or nonrenewal of an Alloy franchise?

According to Alloy's 2025 Franchise Disclosure Document, California Business and Professions Code Sections 20000 through 20043, also known as the California Franchise Relations Act, provide specific rights to Alloy franchisees regarding the termination, transfer, or non-renewal of their franchise agreement. The FDD stipulates that if any provision within the franchise agreement is inconsistent with these sections of the California Business and Professions Code, the law will take precedence. This ensures that franchisees in California are afforded the protections outlined in the California Franchise Relations Act, regardless of what the franchise agreement might state.

This protection is further reinforced by the California Addendum to the Franchise Disclosure Document, which reiterates that the California Franchise Relations Act provides these rights and that the law will control in cases of inconsistency. This addendum serves to emphasize the importance of these legal protections for prospective Alloy franchisees in California.

Additionally, the FDD highlights that certain provisions within Alloy's standard franchise agreement may not be enforceable under California law. These include covenants not to compete extending beyond the franchise term, waivers of punitive damages and jury trials, and requirements for binding arbitration to occur outside of California. These disclaimers suggest that California franchisees may have additional legal recourse beyond the terms of the franchise agreement, providing an added layer of protection.