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§ 310.114.4. Disclosure of Offering Circular by Electronic Means.

10 CA ADC § 310.114.4Barclays Official California Code of Regulations

Barclays California Code of Regulations
Title 10. Investment
Chapter 3. Commissioner of Financial Protection and Innovation (Refs & Annos)
Subchapter 2.6. Franchises
10 CCR § 310.114.4
§ 310.114.4. Disclosure of Offering Circular by Electronic Means.
Currentness
(a) A franchisor may deliver a franchise disclosure document over the Internet or by other electronic means, or in machine-readable media, provided all of the following are met: (1) before furnishing a disclosure document or making it accessible to the prospective franchisee, the franchisor has advised the prospective franchisee of the formats in which the disclosure document is available and any prerequisites or conditions necessary for obtaining or reviewing it in a particular format; and (2) the disclosure document:
(A) is delivered as a single, integrated, document or file;
(B) has no extraneous content beyond what is required or permitted by law and by the UFOC Guidelines, except for the items allowed under subsection (i) below:
(i) for the sole purpose of enhancing the prospective franchisee's ability to maneuver through an electronic version of the disclosure document, the franchisor may include scroll bars, internal links, and search features;
(ii) all other features are prohibited, including audio, video, “pop-up” screens, and links to external documents.
(C) is delivered in a form that intrinsically enables the recipient to store, retrieve, and print the disclosure document; and
(D) conforms as to its content and format to the requirements of law; and
(3) the franchisor:
(A) can prove that it delivered the disclosure document electronically in compliance with this section, and that it did so at or before the time required by law; and
(B) keeps records of its electronic delivery of disclosure documents and makes those records available on demand by the Department.
(b) “Delivery” requires that the disclosure document be conveyed to and received by the prospective franchisee, or that the storage media in which the disclosure document is stored be physically delivered to the prospective franchisee in accordance with subsection (a).
(c) Proof of delivery may be demonstrated by a return email from the recipient acknowledging receipt of the document, or the recipient's use of security codes, passwords, electronic signatures, or similar devices to authenticate the recipient's identity, or by any other form of written confirmation of receipt from the prospective franchisee.
(d) This section does not change or waive any other requirement of law concerning registration or presale disclosure of franchise offerings.

Credits

Note: Authority cited: Section 31502, Corporations Code. Reference: Section 31119, Corporations Code.
History
1. New section filed 1-31-2006; operative 3-2-2006 (Register 2006, No. 5).
This database is current through 5/10/24 Register 2024, No. 19.
Cal. Admin. Code tit. 10, § 310.114.4, 10 CA ADC § 310.114.4
End of Document