---
title: "California Senate Passes Bill to Enhance Franchise Transparency"
url: https://burnaze.com/article/bf4ca142-20b1-449c-a2e0-ff0304a97e15
source: "1851 Franchise"
original_url: https://1851franchise.com/entrepreneur-one-states-bipartisan-bill-will-change-the-franchise-industry-and-boost-responsible-franchising-2726344
category: "Franchise Industry"
industry: "Franchise Industry"
topics: ["Regulation & legal"]
published: 2024-05-31T15:10:18.000Z
modified: 2026-11-01T01:08:17.222Z
image: https://newimage.1851franchise.com/cdn-cgi/image/quality=85,format=webp,width=1280,height=720/story/featureImage/13a485a76fca4c4b03e4622b05eec3431882.jpg
---

# California Senate Passes Bill to Enhance Franchise Transparency

**TL;DR:** The California Senate passed Senate Bill 919 to enhance franchise transparency by requiring third-party franchise sellers to disclose more information to prospective franchisees. The bill aims to provide more information to prospective franchisees by enhancing disclosure requirements for third-party franchise sellers.

*originally published in 1851 Franchise on 2024-05-31. [Read the original](https://1851franchise.com/entrepreneur-one-states-bipartisan-bill-will-change-the-franchise-industry-and-boost-responsible-franchising-2726344).*

## Story

The California Senate passed Senate Bill 919, Entrepreneur reported. The bill, supported by both parties, aims to provide more information to prospective franchisees by enhancing disclosure requirements for third-party franchise sellers, including brokers and franchise sales organizations.

“This legislation provides greater clarity of the various parties engaged in the franchise sales process to prospective franchisees,” IFA President Matthew Haller said in a statement. “Responsible franchising includes improved disclosure and ultimately leads to stronger franchise relationships in the long term.”

The bill amends the California Franchise Investment Law (CFIL), mandating annual registration and pre-sale disclosures from third-party sellers, covering their professional background, litigation history, services and compensation.

Passed with a 36-1 vote, the bill now moves to the California Assembly. This initiative aligns with the IFA’s push for increased transparency in franchising to strengthen franchise relationships.

## Entities

- 1851 Franchise (publication)
- Franchise Industry (sector)
- IFA (company)
- Matt Haller (person)
- california legislation (topic)
- franchise transparency (topic)
- third-party sellers (topic)
- California Senate (regulator)
- Senate Bill 919 (policy)
- California Assembly (regulator)
- California Franchise Investment Law (CFIL) (regulator)
- disclosure requirements (topic)

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Originally reported by 1851 Franchise (https://1851franchise.com/entrepreneur-one-states-bipartisan-bill-will-change-the-franchise-industry-and-boost-responsible-franchising-2726344). Summarized by Burnaze (https://burnaze.com/article/bf4ca142-20b1-449c-a2e0-ff0304a97e15).