§ 22063

22063. (a) This division does not apply to a franchise loan made by a franchisor to a franchisee or a subfranchisor or by a subfranchisor to a franchisee.(b) For purposes of this section:(1) 'Franchise' means 'franchise,' as defined in Section 31005 of the Corporations Code.(2) 'Franchisee' means 'franchisee,' as defined in Section 31006 of the Corporations Code.(3) 'Franchisor' means 'franchisor,' as defined in Section 31007 of the Corporations Code.(4) 'Area franchise' means 'area franchise,' as defined in Section 31008 of the Corporations Code.(5) 'Subfranchise' means 'subfranchise,' as defined in Section 31008.5 of the Corporations Code.(6) 'Subfranchisor' means 'subfranchisor,' as defined in Section 31009 of the Corporations Code.(7) 'Franchised business' means a business operated pursuant to a franchise or area franchise by a franchisee or pursuant to a franchise, area franchise or subfranchise by a subfranchisor.(8) 'Franchise loan' means a commercial loan, as defined in Section 22502, made by a franchisor to a current or prospective franchisee or subfranchisor or a commercial loan by a subfranchisor to a current or prospective franchisee for the acquisition, construction,

n 22502, made by a franchisor to a current or prospective franchisee or subfranchisor or a commercial loan by a subfranchisor to a current or prospective franchisee for the acquisition, construction, operation, development, equipping, expansion, contraction, consolidation, merger, recapitalization, reorganization, or termination of a franchised business provided that the following conditions are satisfied:(A) The franchisor or subfranchisor making the franchise loan shall comply with all applicable federal and state franchise disclosure and registration laws, regulations, rules and orders, including, but not limited to, the California Franchise Investment Law (Division 5 (commencing with Section 31000) of Title 4 of the Corporations Code) and the Federal Trade Commission Franchise Rule: Disclosure Requirements and Prohibitions Concerning Franchising and Business Opportunity Ventures