SECTIONS 20027 - California Statutes

BUSINESS AND PROFESSIONS CODE

SECTION 20027

20027. (a) No franchisor shall deny the surviving spouse, heirs, or
estate of a deceased franchisee or the majority shareholder of the
franchisee the opportunity to participate in the ownership of the
franchise under a valid franchise agreement for a reasonable time
after the death of the franchisee or majority shareholder of the
franchisee. During that time the surviving spouse, heirs, or estate
of the deceased shall either satisfy all of the then current
qualifications for a purchaser of a franchise or sell, transfer, or
assign the franchise to a person who satisfies the franchisor's then
current standards for new franchisees. The rights granted pursuant to
this section shall be granted subject to the surviving spouse, heirs
or estate of the deceased maintaining all standards and obligations
of the franchise.
(b) Nothing in subdivision (a) shall prohibit a franchisor from
exercising the right of first refusal to purchase a franchise after
receipt of a bona fide offer to purchase the franchise by a proposed
purchaser of the franchise.
(c) This article shall not apply to any agreement or contract in
effect prior to January 1, 1984, except an agreement or contract of
an indefinite duration. This section shall not apply to any bequest
or intestate succession that took effect prior to January 1, 1984.