CA AB676

Prohibits franchise agreements from requiring franchisees to waive protections under California's Franchise Relations Act and Franchise Investment Law, with violations deemed contrary to public policy and void.

Restricts franchisor ability to offset amounts owed to franchisees upon termination or nonrenewal to situations where the franchisee agrees to the amount or the franchisor has obtained a final court judgment.

Requires prospective franchisees buying existing franchises to provide specified information and documentation; requires franchisors to notify applicants of additional requirements within 15 days and approve or disapprove applications within 60 days with written reasons for disapproval.

Prohibits franchisors from modifying franchise agreements or requiring general releases in exchange for emergency assistance and from refusing franchises or financial assistance based on protected characteristics listed in the Unruh Civil Rights Act.

Expands Commissioner of Financial Protection and Innovation authority to issue stop orders for franchise registrations when franchisor's business methods include illegal activities or franchise agreements contain provisions contrary to law; makes certain provisions void and unenforceable, effective January 1, 2023.