What California Business and Professions Code sections establish the rights of the Mrcool franchisee concerning termination, transfer, or non-renewal of a franchise?
Mrcool Franchise · 2025 FDDAnswer from 2025 FDD Document
ssions Code Section 20040.5 Code of Civil Procedure Section 1281, and the Federal Arbitration Act) to any provisions of a Franchise Agreement restricting venue to a forum outside the State of California.
- G. The Franchise Agreement requires application of the laws of the State of Kentucky. This provision may not be enforceable under California law.
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- Section 31125 of the California Corporations Code requires us to give you a Disclosure Document, in a form containing the information that the commissioner may by rule or order require, before a solicitation of a proposed material modification of an existing franchise.
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- You must sign a general release of claims if you renew or transfer your franchise.
Source: Item 23 — RECEIPTS (FDD pages 55–263)
What This Means (2025 FDD)
According to the 2025 Mrcool FDD, California Business and Professions Code Section 20010 and Sections 20000 through 20043, known as the Franchise Relations Act, address franchisee rights. Specifically, Section 20010 voids any waiver of rights under the Franchise Relations Act, which generally concerns the termination, transfer, and non-renewal of a franchise.
Additionally, prospective Mrcool franchisees in California should be aware of Business and Professions Code Section 20040.5, which, along with Code of Civil Procedure Section 1281 and the Federal Arbitration Act, may affect venue restrictions in the franchise agreement. The FDD advises franchisees to seek legal counsel to understand how these laws apply to provisions that might restrict venue to a location outside of California.
Furthermore, California Corporations Code Section 31512 voids any waiver of rights under the Franchise Investment Law (California Corporations Code Sections 31000 through 31516) if a franchisee renews or transfers their franchise. This section also prevents Mrcool from disclaiming representations made to the franchisee. These protections ensure that franchisees are not forced to relinquish their legal rights during renewals or transfers and that Mrcool is accountable for its representations.