California Department of Corporations Completes Most Successful Franchise Renewal Period.

SACRAMENTO, Calif. -- More Than 500 Applications Approved, Including Ace Hardware, Motel 6 and Papa Murphy's Pizza

The California Department of Corporations announced today that it approved more than 500 applications to renew registrations to offer and sell franchises in California during the spring renewal period from March to June 2004. This was the most successful renewal period in terms of streamlining and numbers of applications in the Department's history. California leads the nation in franchise locations and employees.

Each spring, the Department of Corporations receives hundreds of applications to renew franchise registrations. The Department released a "Top 10" list of helpful hints in February to streamline the franchise renewal process by reducing mistakes. In addition, the Department joined the coordinated review set up by the North American Securities Administrators Association and safeguarded franchisees through "risk-based" examination of applications.

"Last year, the Department implemented a 'risk-based' review process to help make the franchise filing process more efficient and effective," said Corporations Commissioner William P. Wood. He adds: "By focusing resources on franchise filings posing the most risk to prospective franchisees, such as the franchisors' track record of compliance issues, the Department has been able to concentrate its efforts on preventing fraudulent activities in the marketplace. Franchises and the business activity they generate are a significant component of California's economic life."

According to the International Franchise Association, more than one million workers are employed by over 80,000 franchise businesses operating in California, making the state the leader in franchise locations and employees. Examples of recognized businesses operating under California's Franchise Investment Law include Ace Hardware Corporation, Ben & Jerry's Franchising, Inc., Big O Tires, Inc., Floors to Go, LLC, Lyon's Restaurant Franchise Corporation, Motel 6 Operating, L.P., and Papa Murphy's International, Inc.

Henry Lew and Steve Bronson of the Department's Securities Regulation Division directed the spring renewal period.

The Department of Corporations is California's Investment and Financing Authority. The Department is responsible for the regulation, enforcement and licensing of securities, franchises, off-exchange commodities, investment and financial services, independent escrows, consumer and commercial finance lending and residential mortgage lending. For further information or to obtain a complaint form, please visit the Department's web site at www.corp.ca.gov or call 1-866-ASK-CORP (1-866-275-2677).