California Franchise Investment Law

California Franchise Investment Law regulates the sale of franchises within the state to protect franchisees from fraud and misrepresentation. It requires franchisors to register their Franchise Disclosure Documents (FDD) with the California Department of Financial Protection and Innovation before offering or selling franchises. The law mandates comprehensive disclosures about the franchise’s business, risks, costs, and legal history, enabling prospective franchisees to make informed decisions. It also enforces transparency and fair practices, ensuring both parties understand their rights and obligations. Overall, it aims to promote integrity in franchise transactions and prevent deceptive practices in California.