1979 Franchise Opinions

The Business Law Section is compiling the complete Interpretive Opinions concerning franchise issues from the State of California Department of Corporations.

Here is the archive for 1979. The archive for this year is complete.

  • Opinion No. 79 / 1F - July 26, 1979

    Summary: Net worth requirement of Section 31101(a) may be satisfied if the parent company of the franchisor's parent company satisfies the requirement - even if the franchisor's parent company does not.

    Key Words: 31110, 31101, exempt, net worth test, parent

  • Opinion No. 79 / 2F - February 26, 1979

    Summary: A partnership's operation of restaurants - under the same licensed name - by forming separate general partnerships for each restaurant, in which new investors would hold 25% of the general partnership, and in which a management fee was charged by the partnership satisfies all elements of a franchise under Section 31005.

    Key Words: 31005, elements of franchise, marketing plan, trademark, management fee, franchise fee, partnership, license

  • Opinion No. 79 / 3F - March 30, 1979

    Summary: The sale of a franchise, in which the franchise agreement or other sale documents are signed in California, was not exempt from registering with the state - even when the franchise sale originated out of state, the franchise will never be operated in the state, and the franchisee was not located or domiciled in the state.

    Key Words: Distributorships, resident, located, signing franchise documents in California, 31018, 31013, sale, Rule 310.100.1, 31110, state

  • Opinion No. 79 / 4F - May 9, 1979

    Summary: Out-of-state franchisor's advertisement in newspaper or magazine with more than two-thirds of its circulation outside California during the past 12 months did not constitute offers of franchises made in California. 

    Key Words: 31013, advertisement, offer to sell, Rule 310.013, newspaper, circulation