What is the California Franchise Relations Act 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.
To the extent that the Agreement contains provisions that are inconsistent with the following, such provisions are hereby amended:
- a.
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 22 — CONTRACTS (FDD page 34)
What This Means (2024 FDD)
According to Gokhale Method's 2024 Franchise Disclosure Document, the California Franchise Relations Act is referenced under California Business and Professions Code Sections 20000 through 20043. The FDD indicates that California law provides certain rights to Gokhale Method franchisees concerning termination, transfer, or non-renewal of a franchise agreement.
The disclosure emphasizes that if any provision within the franchise agreement is inconsistent with the California Franchise Relations Act, the law will take precedence. This ensures that franchisees are protected by the rights and regulations established under California law, regardless of what the franchise agreement might state.
Prospective Gokhale Method franchisees in California should carefully review the franchise agreement with legal counsel to ensure full compliance with the California Franchise Relations Act. Understanding these protections is crucial for making informed decisions about entering into a franchise agreement and operating a franchise within the state.