CA Franchise Specialist case studies
CA Franchise Specialist · Put your knowledge to work in context.
The California Franchise Specialist credential is a professional designation for people who prepare, review, sell, or administer franchise offerings governed by California law. It signals working command of the California Franchise Investment Law, the Franchise Relations Act, and the disclosure and registration framework administered by the California Department of Financial Protection and Innovation (DFPI). The CA Franchise Specialist case studies are 5 cases and about 2,334 words.
1The 14-Day Rule and the Signed Acknowledgment
On March 1, 2025, a franchisor's sales representative emails a prospective franchisee a complete FDD. The prospect signs a receipt acknowledging delivery that same day.
528 words, about 3 min2The Exemption That Wasn't: Accredited Investor and the Net Worth Trap
A California franchisor wants to offer a single-unit franchise to a prospective franchisee. The franchisor's attorney advises that the offer is exempt under the 'accredited investor' exemption in Corporations Code section 31102(a)(3) because the prospect has a net worth of 1.2 million, including a 700,000 primary residence.
482 words, about 2 min3Termination Without Good Cause: The 30-Day Notice and the Cure Period
A franchisor in California terminates a franchisee's agreement effective immediately on June 1, 2025, citing the franchisee's failure to meet a monthly sales quota for three consecutive months. The franchise agreement states that failure to meet the quota is a material breach and allows termination without notice.
436 words, about 2 min4The Item 19 Earnings Claim That Wasn't Representative
A franchisor includes an Item 19 Financial Performance Representation in its FDD stating that 'average annual gross sales for franchised units in California were 1.2 million in 2024.' The figure is based on the top 10 performing units out of 50 total units. The FDD does not disclose that the figure is based on a subset or that it excludes lower-performing units.
447 words, about 2 min5The Unregistered Franchise Broker and the Finder's Fee
A California franchisor hires an independent sales consultant to find prospective franchisees. The consultant is paid a $10,000 commission for each franchise sale.
441 words, about 2 min