California qualifies as a registration state. As a result, it has a franchise investment law. This law requires franchisors to register with the California Department of Financial Protection and Innovation. The first time you register, a payment of $675 is required. The renewal fee is $450. Your registration is valid for up to 110 days after the conclusion of the franchisor’s fiscal year. It must be renewed every single year.
New businesses may have questions about California franchise registration renewal regulations. For example, they may wonder what exactly qualifies as a franchise. California has a broad definition of what a franchise is. According to California law, it includes all agreements, be them written or oral, regarding how a person can distribute services or goods under the system or marketing plan of another business.
It also includes businesses where the franchisee is associated with or identified by a franchisor’s trademark. This would also include arrangements where a franchisee has to pay a fee for having the franchise. According to California franchise registration renewal law, a franchise fee could also include the payment for services or goods.
Franchisors must complete the registration within 110 days of the conclusion of their fiscal year. If your franchise operates on a fiscal calendar year, then registration must be renewed no later than the 20th April of each year. There are some exemptions to the registration law. However, these can be complicated to understand. For this reason, it is best to work with an attorney who specializes in franchise law to make sure that your business is in full compliance with California law and to avoid any unnecessary fees.
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