(a) The court may, in its discretion, order a franchise applied to the satisfaction of a money judgment upon application by the judgment creditor made on noticed motion. The notice of motion shall be served on the judgment debtor and the public entity that granted the franchise. Service shall be made personally or by mail. In exercising its discretion, the court shall determine whether application of the franchise to the satisfaction of the judgment is proper taking into account all the circumstances of the case, including but not limited to the nature of the franchise, whether the franchise is by its terms transferable, and the likelihood that application of the franchise to the satisfaction of the judgment will yield a substantial amount.
§ 708.920.Generally
Title 9. Enforcement of Judgments · Division 2 · Chapter 6. Miscellaneous Creditors' Remedies · Article 9. Enforcement Against Franchise · Enacted 1982 · no amendments on record · Last verified July 28, 2026
In one sentenceSection 708.920 lets the court, on the creditor's noticed motion served on both the debtor and the granting public entity, order a franchise applied to a judgment after weighing the franchise's nature, transferability, and likely yield, and authorizes application through sale, assignment, or receivership along with supporting orders.
Full Text of § 708.920
(b) If the court orders application of the franchise to the satisfaction of the judgment, application shall be by such means as appears proper to the court, including but not limited to sale of the franchise, assignment of the franchise or proceeds of the franchise, or appointment of a receiver. The court may include in its order, or make additional orders containing, provisions to effectuate the application of the franchise to the satisfaction of the judgment, including but not limited to provisions relating to the place of sale of the franchise, possession of the property of the judgment debtor necessary for the exercise of the franchise, receipt of proceeds of the franchise, recovery of penalties imposed by law and recoverable for injury to the franchise or for damages or other cause, and the judgment debtor's powers, duties, and liability for penalties and forfeitures.
Plain-English Summary
This is the operative section of Article 9. The creditor applies on noticed motion, served on both the debtor and the public entity that granted the franchise, and the court has discretion whether to order the franchise applied to the judgment at all.
In exercising that discretion, the court looks at the whole picture: what kind of franchise it is, whether its own terms allow transfer, and whether applying it to the judgment is likely to produce a meaningful recovery. A franchise that cannot be transferred, or that would yield little after expenses, is a poor candidate for this remedy.
If the court does order the franchise applied, subdivision (b) gives it broad tools to make that happen, including sale of the franchise, assignment of the franchise or its proceeds, or appointment of a receiver. The court can also enter supporting orders covering where a sale happens, who holds the debtor's related property during the process, how proceeds get collected, recovery of any penalties tied to injury to the franchise, and the debtor's own powers, duties, and exposure to penalties or forfeiture in the meantime.
Frequently Asked Questions
Who must be served with the motion to apply a franchise to a judgment?
Both the judgment debtor and the public entity that granted the franchise.
What does the court consider in deciding whether to order the franchise applied?
All the circumstances, including the nature of the franchise, whether it is transferable by its own terms, and the likelihood that applying it will yield a substantial amount.
How can the court apply the franchise to the judgment?
By sale of the franchise, assignment of the franchise or its proceeds, appointment of a receiver, or any other means the court finds proper.
Can the court issue additional orders beyond the basic application order?
Yes, covering matters like the place of sale, possession of related property, collection of proceeds, penalty recovery, and the debtor's powers and liabilities during the process.
Amendment History
Added by Stats. 1982, Ch. 1364, Sec. 2. Operative July 1, 1983, by Sec. 3 of Ch. 1364.
Source & verification. Section text is reproduced verbatim from
the Deering's California Codes Annotated / vLex. Enacted by the California Legislature.
Last verified July 28, 2026.
· Official source
Also known as: applying franchise to judgment californiasale of franchise judgment enforcement