California Franchise Investment Law (CFIL)

The California Franchise Investment Law (CFIL) regulates the offering and sale of franchises in California to protect investors and ensure transparency. It requires franchisors to register their franchise offerings with the California Department of Business Oversight and provide comprehensive disclosures, including financial information, litigation history, and franchise agreements. This law aims to prevent fraud, misrepresentation, and unfair practices by ensuring prospective franchisees receive accurate and complete information before making an investment decision. It also grants the state authority to enforce compliance and take action against violations, fostering a fair and transparent franchise marketplace in California.