CA SB919

Requires franchise brokers to register with the Commissioner of Financial Protection and Innovation before offering or selling franchises in California, with registration effective upon filing a complete application and paying the $450 fee.

Establishes that a "franchise broker" is any person engaged in offering or selling franchises who receives compensation from a franchisor, subfranchisor, franchisee, or their affiliates, excluding franchisors, employees, and certain other entities.

Mandates franchise brokers provide prospective franchisees with a completed Uniform Franchise Broker Disclosure Document before communicating about franchise opportunities, with required information including broker background, professional experience, legal actions, compensation structure, and brands represented.

Authorizes the commissioner to summarily issue stop orders suspending or revoking registrations for non-compliance, with franchise brokers entitled to a hearing within 15 business days if requested, and makes it unlawful for brokers to offer or sell franchises while a stop order is in effect.

Makes franchise brokers liable to franchisees for damages and to franchisors for damages or indemnity claims if they violate registration or disclosure requirements; becomes operative on July 1, 2026 or one year after appropriation is made, whichever is later.