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Current as of January 01, 2025 | Updated by Findlaw Staff
“Franchise fee” means any fee or charge that a franchisee or subfranchisor is required to pay or agrees to pay for the right to enter into a business under a franchise agreement, including, but not limited to, any payment for goods and services.
However, the following shall not be considered the payment of a franchise fee:
(a) The purchase or agreement to purchase goods at a bona fide wholesale price if no obligation is imposed upon the purchaser to purchase or pay for a quantity of the goods in excess of that which a reasonable businessperson normally would purchase by way of a starting inventory or supply or to maintain a going inventory or supply.
(b) The payment of a reasonable service charge to the issuer of a credit card by an establishment accepting or honoring that credit card.
(c) Amounts paid to a trading stamp company under Chapter 3 (commencing with Section 17750) of Part 3 of Division 7 of the Business and Professions Code by a person issuing trading stamps in connection with the retail sale of merchandise or service.
Cite this article: FindLaw.com - California Code, Corporations Code - CORP § 31011 - last updated January 01, 2025 | https://codes.findlaw.com/ca/corporations-code/corp-sect-31011/
FindLaw Codes may not reflect the most recent version of the law in your jurisdiction. Please verify the status of the code you are researching with the state legislature before relying on it for your legal needs.
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