Notwithstanding the terms of any franchise, the franchisor may not prohibit or prevent the sale, transfer, or assignment of the franchise to a corporation if both of the following conditions are satisfied:

(a) The franchisee has a controlling interest in the corporation.

Terms Used In California Business and Professions Code 21149

  • Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.

(b) The franchisee offers in writing to personally guarantee the corporation’s performance of its obligations under the franchise.

(Added by Stats. 1980, Ch. 698, Sec. 2.)

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