What is the California Franchise Investment Law code?
Gokhale_Method Franchise · 2024 FDDAnswer from 2024 FDD Document
The California Department of Financial Protection and Innovation requires that certain provisions contained in the franchise documents be amended to be consistent with California law, including the California Franchise Investment Law, CAL.
CORP.
CODE Section 31000 et seq., and the California Franchise Relations Act, CAL.
BUS. & PROF.
CODE Section 20000 et seq.
Source: Item 22 — CONTRACTS (FDD page 34)
What This Means (2024 FDD)
According to the 2024 Gokhale Method Franchise Disclosure Document, the California Franchise Investment Law is referenced as CAL. CORP. CODE Section 31000 et seq. This law necessitates that certain provisions within Gokhale Method's franchise documents be consistent with California law.
Specifically, the California Department of Financial Protection and Innovation requires amendments to franchise documents to align with this law. This ensures that franchisees' rights are protected under California statutes regarding franchise investments. The FDD also mentions that Section 31125 of the California Corporations Code mandates that Gokhale Method provide a disclosure document with required information before soliciting any proposed material modification of an existing franchise.
Additionally, California Corporations Code Section 31512 voids any waiver of rights under the Franchise Investment Law, covering sections 31000 through 31516. This protects franchisees from unknowingly relinquishing their legal protections. The FDD emphasizes that any provision requiring a franchisee to waive specific provisions of the law is against public policy and therefore void and unenforceable.