California Code of Regulations
Title 10 - Investment
Chapter 3 - Commissioner of Financial Protection and Innovation
Subchapter 2.6 - Franchises
Section 310.011.1 - Purchase Price or Rental of Fixtures, Equipment and Certain Other Articles Utilized and Necessary in Franchised Business

There is exempted from the provisions of Chapter 2 (commencing with Section 31110) of Part 2 of the Law, any offer or sale of a franchise which would be subject to registration solely because the franchisee by the agreement with the franchisor is obligated to pay in addition to any sums for which the exemption of Section 310.011 of these rules is available, a sum of not exceeding $1,000 annually on account of the purchase price or rental of fixtures, equipment or other tangible property to be utilized in, and necessary for, the operation of the franchised business, of the price or rental so charged does not exceed the cost which would be incurred by the franchisee acquiring the item or items from other persons or in the open market.

1. New section filed 2-20-74 as an emergency; effective upon filing. Certificate of Compliance included (Register 74, No. 8).
2. Amendment filed 5-19-89; operative 6-18-89 (Register 89, No. 21).

Note: Additional reference: Section 31011, Corporations Code. Reference: Sections 31011, 31110, 31111, 31112, 31113, 31114, 31115, 31116, 31117, 31118, 31119, 31120, 31121, 31122, 31123, 31124 and 31125, Corporations Code.