California Codes, Business and Professions Code - BPC, Division 8 — Special Business Regulations, Chapter 7.8 — Franchise Dealers Fair Practices, Section 21149
Notwithstanding the terms of any franchise, the franchisor may not prohibit or prevent the sale, transfer, or assignment of the franchise to a corporation if both of the following conditions are satisfied:
(a) The franchisee has a controlling interest in the corporation.
(b) The franchisee offers in writing to personally guarantee the corporation’s performance of its obligations under the franchise.
Notes
Prohibits a franchisor from preventing a franchisee's sale, transfer, or assignment of the franchise to a corporation when the franchisee holds a controlling interest in that corporation and offers in writing to personally guarantee the corporation's performance of its franchise obligations. The rule applies notwithstanding contrary franchise terms.
Use as reference
Lexinter.net | California Code, Business and Professions Code - BPC § 21149 | https://laws.lexinter.net/codes/california/business-and-professions-code/division-8/chapter-7-8/section-21149