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§ 310.100.2. Negotiated Sales.


Barclays Official California Code of Regulations Currentness
Title 10. Investment
Chapter 3. Commissioner of Business Oversight, Division of Corporations
Subchapter 2.6. Franchises
10 CCR § 310.100.2
§ 310.100.2. Negotiated Sales.
(a) General. The offer or sale of a franchise on terms different from the terms of the offer registered under Section 31111, 31121 or 31123 of the Law is exempt from the requirements of Section 31110 of the Law, if all of the following conditions are met:
(1) The initial offer is the offer registered under to Section 31111, 31121 or 31123 of the Law.
(2) When the prospective franchisee receives the offering circular, he or she also receives copies of all Notices of Negotiated Sale of Franchise filed with the Commissioner within the last 12 months, if any.
(3) Before selling another franchise, the franchisor amends its registered offer to disclose: “The terms of Item(s) _________ of this Offering Circular have been negotiated with other franchisees. A copy of all Negotiated Sales Notices filed in California in the last twelve months is attached as Exhibit _________.” This disclosure should be made in the UFOC Item that was negotiated or in an appendix to the UFOC. This disclosure must be made if the negotiated sale occurred within twelve months of the offering being made. An amendment making only this disclosure is effective when filed.
(4) The Notice of Negotiated Sale of Franchise in the form set forth in subsection (b) is filed with the Commissioner within 15 business days after the negotiated sale is consummated.
(5) The franchisor certifies or declares in an appendix to its application for renewal that all notices have been filed with the Commissioner as required by paragraph (a)(4) (see Section 310.122 of these rules).
(b) The Notice of Negotiated Sale of Franchise required by subsection (a)(4) of this rule shall be filed on the following form:
Note: Authority cited: Sections 31100 and 31502, Corporations Code. Reference: Sections 31100, 31110 and 31111, Corporations Code.
1. New section filed 8-17-89; operative 9-16-89 (Register 89, No. 33).
2. Editorial correction of printing error in form (Register 94, No. 2).
3. Amendment filed 1-20-94; operative 2-21-94 (Register 94, No. 3).
4. Change without regulatory effect amending form within subsection (b) filed 8-13-2014 pursuant to section 100, title 1, California Code of Regulations (Register 2014, No. 33).
This database is current through 4/23/21 Register 2021, No. 17
10 CCR § 310.100.2, 10 CA ADC § 310.100.2
End of Document