California Business and Professions Code 20041 – (a) Except as provided in subdivision (b), the provisions of …
(a) Except as provided in subdivision (b), the provisions of this chapter shall apply only to franchises granted or renewed on or after January 1, 1981, or to franchises of an indefinite duration that may be terminated by the franchisee or franchisor without cause.
(b) The amendments to this chapter made by the act adding this subdivision shall apply only to franchise agreements entered into or renewed on or after January 1, 2016, or to franchises of an indefinite duration that may be terminated by the franchisee or franchisor without cause.
Terms Used In California Business and Professions Code 20041
- Amendment: A proposal to alter the text of a pending bill or other measure by striking out some of it, by inserting new language, or both. Before an amendment becomes part of the measure, thelegislature must agree to it.
- 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
- Subdivision: means a subdivision of the section in which that term occurs, unless some other section is expressly mentioned. See California Business and Professions Code 15
(c) The amendments to this chapter made by the act adding this subdivision shall apply only to franchise agreements entered into, amended, or renewed on or after January 1, 2023, or to franchises of an indefinite duration that may be terminated by the franchisee or franchisor without cause, except that a franchise agreement amended after January 1, 2023, shall not be subject to the amendments to this chapter made by the act adding this subdivision if the amendment to the franchise agreement was initiated by the franchisee and did not substantially and adversely impact the franchisee’s rights, benefits, privileges, duties, obligations, or responsibilities under the franchise agreement.
(Amended by Stats. 2022, Ch. 728, Sec. 3. (AB 676) Effective January 1, 2023.)