1994 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 1994. The archive for this year is complete.

  • Opinion No. 94 / 1F - June 9, 1994

    Summary: Franchisor may meet the standard of experience exemption under Section 31101(b) by combining or tacking through acquisition or merger, the cumulative experience of the predecessor and sister company. The definition of "parent" company may be expanded or interpreted to include the remote or "ultimate" parent company, as well as to allowing the "tacking" or combining of the experience of the sister and ultimate parent companies to meet the experience requirement set forth in Section 31101(b) without diminishing the public policy underlying the rationale for the requirement. 

    Key Words: 31101(b), 31110, 31101, experience exemption, parent company, ultimate, sister company, predecessor, tacking, combining, merger, acquisition, affiliate

  • Opinion No. 94 / 2F - December 29,1994

    Summary: Franchisor qualified for the experience exemption under Section 31101(b) in which in addition to its own experience, franchisor has the experience of its parent company, the experience of an acquired entity, and the franchisor's executives and the acquired company's former executives and employees. Section 31101(b) reflects the policy that if a franchisor has significant experience in the business in which it is franchising, franchisees are protected.

    Key Words: 31101(b), 31110, 31101(a), experience exemption, parent company, former executives and employees, tacking, acquire, merge