California Franchise Law Guide: Registration, Franchise Investment Law & Relations Act
What a prospective franchisee should know about California franchise registration, disclosure timing, and termination/non-renewal protections before signing.
Last reviewed: May 26, 2026 by the BizLeaseCheck Editorial Team
General information, not legal advice.
Overview
California was one of the first states to regulate franchise sales. The California Franchise Investment Law generally requires a franchisor to register its Franchise Disclosure Document (FDD) with the state before offering or selling a franchise in California, and disclosure must be delivered at least 14 days before a sale.
Separately, the California Franchise Relations Act governs the ongoing relationship, including limits on termination and non-renewal. Both bodies of law were affected by 2026 legislation (AB 676), so confirm the current requirements with the DFPI and a franchise attorney.
What to check
The California Franchise Investment Law (California Corporations Code §§ 31000–31516) generally requires franchisors to register with the Department of Financial Protection and Innovation (DFPI) before offering or selling a franchise in California, unless an exemption applies.
Registration disclosure documents and the final franchise agreement must be provided to a prospective franchisee at least 14 days before the sale, consistent with the federal FTC Franchise Rule.
DFPI — About the Franchise Investment LawCalifornia also has a Franchise Relations Act (Business and Professions Code § 20000 et seq.) addressing termination, non-renewal, and transfer of franchises.
The specific good-cause, notice, and cure requirements are technical and were affected by recent amendments; confirm the current standard rather than relying on a general summary.
DFPI — FranchisesCalifornia enacted AB 676, which makes changes to the Franchise Investment Law and the California Franchise Relations Act and creates new requirements and prohibitions for franchise agreements.
Because these changes are recent, treat any specific California franchise-agreement requirement as something to verify against the current statute and DFPI guidance.
DFPI — FranchisesKey takeaways
- California generally requires FDD registration with the DFPI before a franchise is offered or sold.
- You should receive the FDD at least 14 days before signing or paying.
- The California Franchise Relations Act adds termination/non-renewal protections beyond the federal rule.
- 2026's AB 676 changed franchise-agreement requirements — verify the current rules.
- Confirm the franchisor's California registration is effective before you sign.
Official resources
Legal-review notes
Guide confidence marker: Medium confidence.
- Confirm the current text of the California Franchise Investment Law and Franchise Relations Act after the 2026 AB 676 amendments before relying on specific requirements.
- Verify whether a specific exemption applies and that the franchisor’s California registration is effective.
Frequently asked questions
Does California require franchise registration?
Yes. The California Franchise Investment Law generally requires franchisors to register the FDD with the DFPI before offering or selling a franchise in California, unless an exemption applies.
How long before signing must I get the FDD in California?
At least 14 days before the sale, consistent with the federal FTC Franchise Rule. The franchisor’s California registration should also be effective.
Can a California franchisor terminate my franchise at will?
Not freely — the California Franchise Relations Act regulates termination and non-renewal. The specific good-cause and notice standards are technical and were recently amended, so confirm the current rule with a franchise attorney.