Antitrust Law Daily Wrap Up, FRANCHISING & DISTRIBUTION NEWS: California enacts amendments to Franchise Investment Law, (Sep 24, 2013)

By Peter Reap, J.D., LL.M.

Yesterday, the Governor of California signed into law a measure that amends the state’s Franchise Investment Law by modifying the statute’s requirement that, for the exemption from the law’s disclosure requirements to apply, certain written disclosures be made by a franchisor at least 10 business days prior to the sale or material modification of a franchise. The amendments change the 10-day requirement to 14 days prior to the sale or modification.

The new law also replaces the term for a written disclosure document, called an “offering circular,” with the term “franchise disclosure document” in the statute.

These amendments bring the Franchise Investment Law into agreement with changes made in 2007 to the FTC Franchise Rule and in 2008 to the North American Securities Administrators Association’s Franchise Registration and Disclosure Guidelines. Senate Bill No. 537 (Chapter No. 334) becomes effective January 1, 2014.

News: FranchisingDistribution CaliforniaNews