Corporations Code – CORP § 31300

Any person who offers or sells a franchise in violation of Section 31101 , 31110 , 31119 , 31200 , or 31202 , or in violation of any provision of this division that provides an exemption from the provisions of Chapter 2 (commencing with Section 31110 ) of Part 2 or any portions of Part 2, shall be liable to the franchisee or subfranchisor, who may sue for damages caused thereby, and if the violation is willful, the franchisee may also sue for rescission, unless, in the case of a violation of Section 31200 or 31202 , the defendant proves that the plaintiff knew the facts concerning the untruth or omission, or that the defendant exercised reasonable care and did not know, or, if he or she had exercised reasonable care, would not have known, of the untruth or omission.