Corp. Code, § 31300 · Chapter 1. Civil Liability
Corp. Code, § 31300
Text — As published in the Legislative Counsel's database, tables dated October 18, 2026 (pubinfo_2025.zip)
(a) Any person who offers or sells a franchise in violation of Section 31101, 31110, 31119, 31200, or 31202, or in violation of any provision of this division that provides an exemption from the provisions of Chapter 2 (commencing with Section 31110) of Part 2 or any portions of Part 2, shall be liable to the franchisee or subfranchisor, who may sue for damages caused thereby, and if the violation is willful, the franchisee may also sue for rescission, unless, in the case of a violation of Section 31200 or 31202, the defendant proves that the plaintiff knew the facts concerning the untruth or omission, or that the defendant exercised reasonable care and did not know, or, if they had exercised reasonable care, would not have known, of the untruth or omission.
(b) (1) Any franchise broker who offers or sells a franchise in violation of Part 7 (commencing with Section 31520) or Chapter 1 (commencing with Section 31200) of Part 3 shall be liable to the franchisee, who may sue for damages caused thereby.
(2) Any franchise broker who offers or sells a franchise in violation of Part 7 (commencing with Section 31520) or Chapter 1 (commencing with Section 31200) of Part 3 shall be liable to the franchisor, who may sue for damages or may assert claims of indemnity against the franchise broker caused by the violation, including, but not limited to, indemnity for any damages awarded in connection with rescission awarded to the franchisee.
Notes and commentary — not statutory text
History
Amended by Stats. 2024, Ch. 518, Sec. 3. (SB 919) Effective January 1, 2025.
Source of truth
- Edition
- As published in the Legislative Counsel's database, tables dated October 18, 2026 (pubinfo_2025.zip)
- Official file
- https://leginfo.legislature.ca.gov/faces/codes_displaySection.xhtml?lawCode=CORP§ionNum=31300.
- Text hash
- sha256 7fca447bcccea599fb2b07d9c76093cf96f14e6768dc6841b6010ec0e4e425ba
- Composed by
- compose_ca.py 2026-10-22: the Legislative Counsel's CAML content files read by a tokenizer (caml_readers.reader_a); an independent xml.etree reading (caml_readers.reader_b) agrees on every section
This section cites
Provisions in this library that the text above cites, as it prints each citation. A range cited as “ss. 61.13-61.16” links its first and last provisions.
Corporations Code
- Corp. Code, § 31101Printed as Section 31101, 31110, 31119, 31200, or 31202
- Corp. Code, tit. 4, div. 5, pt. 2, ch. 2DisclosurePrinted as Chapter 2 (commencing with Section 31110) of Part 2
- Corp. Code, § 31110Printed as Section 31101, 31110, 31119, 31200, or 31202
- Corp. Code, § 31119Printed as Section 31101, 31110, 31119, 31200, or 31202
- Corp. Code, tit. 4, div. 5, pt. 3, ch. 1Fraudulent PracticesPrinted as Chapter 1 (commencing with Section 31200) of Part 3
- Corp. Code, § 31200Printed as Section 31101, 31110, 31119, 31200, or 31202 | Section 31200 or 31202
- Corp. Code, § 31202Printed as Section 31101, 31110, 31119, 31200, or 31202 | Section 31200 or 31202
Cited by 2 provisions
Provisions in this library whose text cites Corp. Code, § 31300. Each shows the citation as that text prints it.
Procedural information only. Not legal advice and not a substitute for the advice of an attorney. Confirm the current text with the official publisher before relying on it.