State of California Department of Corporations
Anthony R. Pierno, Commissioner
In reply refer to: File No. _____
This interpretive opinion is issued by the Commissioner of Corporations pursuant to section 31510 of the franchise investment law. It is applicable only to the transaction identified in the request therefor, and may not be relied upon in connection with any other transaction.
Mr. Herbert G. Hall
5357 Parkmor Road
Calabasas, CA 91302
Dear Mr. Hall:
The request for an expression of our opinion contained in your letter dated December 1, 1970, has been considered by the Commissioner. You have inquired concerning regulatory requirements applicable to you, if under the circumstances described in your letter, you effect, or attempt to effect, the sale of franchises in this state.
You have represented that your entire income has been derived from the sale of franchises and that you have engaged in this activity for the past several years. We understand and assume for the purpose of this opinion that you are not licensed by the California Department of Real Estate as a real estate broker or real estate salesman, nor by the Commissioner of corporations as a broker-dealer or agent pursuant to the Corporate Securities Law.
According to Section 31210 of the Franchise Investment Law, a person not holding such licenses, may without violating that Section, effect, or attempt to effect, the sale of franchises in this state only in transactions exempted by Section 31101 (or other Sections in Chapter l of Part 2 of the Law}, or if he is identified in an application or amended application filed pursuant to Sections 31110 et seq. of the Law. Rule 210 provides that for this purpose, a person shall be deemed identified only if all the information required by items 5(b) and 6 of Rule 111.1 has been provided in an application for registration of a franchise filed with the Department. Your attention is called to these items as contained in Rule 111.1, copy of which is attached to this opinion. You are advised to engage in the sale of nonexempt franchise's only if you have been properly identified in an application or amended application filed with this Department.
For your information we enclose a booklet which contains both the Franchise Investment Law and the related rules of the Commissioner of Corporations.
Dated: San Francisco, California
January 25, 1971
By order of ANTHONY R. PIERNO
Commissioner of Corporations
HANS A. MATTES
Office of Policy