If you are interested in buying or selling a franchise in California, it is important to be familiar with the applicable law before taking action. California franchise law is largely governed by the state’s Franchise Investment Law, which was enacted in 1970.
One of the major requirements of California’s Franchise Investment Law is that franchisors must register with the California Department of Business Oversight before selling or offering for sale franchises in California. An “offer” or “offer to sell” includes every...
The phrase “doing business as” or “DBA” is a legal term used to signify that the trade name, or fictitious business name, under which the business or operation is conducted and presented to the world is not the legal name of the business responsible for it. For example, a company may incorporate under the name “XYZ Inc.” This is their legal name and where the business’ creditors can seek payment or compensation, that is,...
In California, Close Corporations are creatures of statute. They are not judicially created as they can be in other states. Therefore, in order to benefit from the legal protections of a Close Corporation, it must be properly formed and meet all statutory requirements.
A Close Corporation is designed to give its shareholders more control over the operations of the business and allow for a flexible management model. A California Close Corporation may not have more...
Whether you are drafting a contract or reviewing one before signing it, it is important to understand the significance of a Forum Selection Clause. Although you may never need to use it, in the event of a dispute a Forum Selection Clause may become critical.
A forum selection clause is a provision in a contract in which the parties agree that any litigation resulting from that contract will be initiated in a specific forum. In other words, it...
