Does the Desi District Franchise Disclosure Document need to be registered in California?
Desi_District Franchise · 2024 FDDAnswer from 2024 FDD Document
The following states have franchise laws that require that the Franchise Disclosure Document be registered or filed with the states, or be exempt from registration: California, Hawaii, Illinois, Indiana, Maryland, Michigan, Minnesota, New York, North Dakota, Rhode Island, South Dakota, Virginia, Washington, and Wisconsin.
THESE FRANCHISES HAVE BEEN REGISTERED UNDER THE FRANCHISE INVESTMENT LAW OF THE STATE OF CALIFORNIA. SUCH REGISTRATION DOES NOT CONSTITUTE APPROVAL, RECOMMENDATION OR ENDORSEMENT BY THE COMMISSIONER OF BUSINESS OVERSIGHT NOR A FINDING BY THE COMMISSIONER THAT THE INFORMATION PROVIDED HEREIN IS TRUE, COMPLETE AND NOT MISLEADING.
California Corporations Code, Section 31125 requires the franchisor to give the franchisee a disclosure document, approved by the Department of Business Oversight, prior to a solicitation of a proposed material modification of an existing franchise.
California Business and Professions Code Sections 20000 through 20043 provide rights to the franchisee concerning termination, transfer, or non-renewal of a franchise. If the Franchise Agreement contains a provision that is inconsistent with the law, the law will control.
Source: Item 23 — RECEIPTS (FDD pages 52–140)
What This Means (2024 FDD)
According to Desi District's 2024 Franchise Disclosure Document, the document must be registered in California. The FDD states that California is among the states that have franchise laws requiring the Franchise Disclosure Document to be registered or filed with the states, or be exempt from registration.
Additionally, the California Addendum to the Disclosure Document states that the franchises have been registered under the Franchise Investment Law of the State of California. However, the FDD also notes that such registration does not constitute approval, recommendation, or endorsement by the Commissioner of Business Oversight, nor a finding that the information provided is true, complete, and not misleading.
Furthermore, the California Corporations Code requires Desi District to provide a disclosure document approved by the Department of Business Oversight before soliciting a proposed material modification of an existing franchise. The FDD also mentions that California Business and Professions Code Sections 20000 through 20043 provide rights to the franchisee concerning termination, transfer, or non-renewal of a franchise, and if the Franchise Agreement contains a provision inconsistent with the law, the law will control.