Commissioner's Opinion No. 79 / 4F
State of California Department of Corporations
Peter R. Pancione, Commissioner
In reply refer to: File No. _____
This interpretive opinion is issued by the Commissioner of Corporations pursuant to section 31510 of the franchise investment law. It is applicable only to the transaction identified in the request therefor, and may not be relied upon in connection with any other transaction.
Mr. Nicholas J. Lykos
Houston, Texas 77040
Dear Mr. Lykos:
The request for an interpretive opinion contained in your letter dated March 26, 1979 has been considered by the Commissioner. Your letter raises the question whether Kwik-Kopy Corporation's ("KKC") proposed advertisement would involve an offer or sale of a franchise in California within the meaning of Section 31013 of the Franchise Investment Law ("Law").
You have represented that KKC proposes to place in the "Mart" section of the national edition of The Wall Street Journal an advertisement offering a Kwik-Kopy printing franchise.
Subdivision (c) of Section 31013 provides, in part, that an offer to sell is not made in this State because the publisher circulates or there is circulated on his behalf in this State any bona fide newspaper or other publication of general, regular, and paid circulation which has had more than two-thirds of its circulation outside this State during the past 12 months. Rule 310.013 provides that in determining whether a newspaper or other publication has had more than two-thirds of its circulation outside this State during the past 12 months, in the case of a newspaper or magazine which publishes a separate edition circulated in this State which does not carry the same advertising as that of other editions of the same publication, such separate edition shall be considered a separate newspaper or magazine from the other editions of the same publication with respect to any advertisement which is not to be carried in all editions of the newspaper or magazine. The Wall Street Journal, published by Dow Jones & Company, Inc., is published in four editions, the eastern edition, the western edition, the southwestern edition, and the midwestern edition, which are, for advertising purposes, collectively referred to as the "national edition". Dow Jones & Company also publishes a newspaper entitled The Asian Wall Street Journal which, for advertising purposes, is included with the other editions when a "full run" advertisement is placed. For purposes of Section 31013 of the Law and Rule 310.013, we consider the Asian Wall Street Journal to be a separate and distinct newspaper from The Wall Street Journal and not simply another edition of The Wall Street Journal.
Since KKC's proposed advertisement will be in all editions of The Wall Street Journal, which we assume has had more than two-thirds of its circulation outside California during the last 12 months, the advertisements will not constitute offers of franchises made in this State within the meaning of Section 31013 as further defined by Rule 310.013.
Dated: Sacramento, California
May 9, 1979
By order of
PETER R. PANCIONE
Commissioner of Corporations
ROBERT E. LA NOUE
Office of Policy