A provision in a franchise agreement restricting venue to a forum outside this state is void with respect to any claim arising under or relating to a franchise agreement involving a franchise business operating within this state.

(Added by Stats. 1994, Ch. 1277, Sec. 1. Effective January 1, 1995.)

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Terms Used In California Business and Professions Code 20040.5

  • franchise: means a contract or agreement, either expressed or implied, whether oral or written, between two or more persons by which:

    California Business and Professions Code 20001

  • State: means the State of California, unless applied to the different parts of the United States. See California Business and Professions Code 21
  • Venue: The geographical location in which a case is tried.