Gentis

Defendants’ petition for rehearing or for modification of the opinion is denied. The attorney who filed the petition on defendants’ behalf is not licensed to practice law in this state. Nor did that attorney request permission to appear as counsel pro hac vice in connection with the appeal or this rehearing petition. (Cal. Rules of Court, rule 983.) An attorney who is not an active member of the California State Bar, and who has not been granted permission to appear in a particular matter, may not represent a party in this state’s courts. (Bus. & Prof. Code, § 6125; Birbrower, Montalbano, Condon & Frank v. Superior Court (1998) 17 Cal.4th 119, 127-135 [ 70 Cal.Rptr.2d 304 , 949 P.2d 1 ].)

Further, in their briefs on appeal, defendants argued the facts as found by the trial court were insufficient as a matter of law to meet the statutory definition of a franchise. They did not assert the evidence was insufficient to support the trial court’s factual findings. In their rehearing petition defendants argue, for the first time, that the trial court inaccurately characterized some of the facts. They also specifically contend there was insufficient evidence to support one of the trial…

I. Introduction

Defendants, San Jacinto Holdings, Inc., and its wholly owned subsidiary, Safeguard Business Systems, Inc. (Safeguard), appeal from a judgment. The judgment declared Safeguard to be a franchisor under the California *1297 Franchise Investment Law (CFIL), Corporations Code section 31000 et seq. 1 Safeguard manufactures and sells recordkeeping systems and office products. The plaintiffs are members of a class of Safeguard’s current and former distributors. Safeguard contends the facts as found by the trial court were insufficient as a matter of law to meet the statutory requirement that plaintiffs were “granted the right to engage in the business of offering, selling or distributing goods or services . . . .” (§ 31005, subd. (a)(1), italics added.) The parties do not dispute the trial court’s factual findings. The sole issue raised on defendants’ appeal is that the trial court’s factual findings as a matter of law do not permit a conclusion that a franchise relationship within the meaning of the CFIL existed between the parties. Safeguard argues that because plaintiffs lacked the authority to enter into binding sales contracts, did not transfer title to…

Defendants, San Jacinto Holdings, Inc., and its wholly owned subsidiary, Safeguard Business Systems, Inc. (Safeguard), appeal from a judgment. The judgment declared Safeguard to be a franchisor under the California Franchise Investment Law (CFIL), Corporations Code section 31000 et seq. [1] Safeguard manufactures and sells recordkeeping systems and office products. The plaintiffs are members of a class of Safeguard's current and former distributors. Safeguard contends the facts as found by the trial court were insufficient as a matter of law to meet the statutory requirement that plaintiffs were "granted the right to engage in the business of offering, selling or distributing goods or services. ..." (§ 31005, subd. (a)(1), italics added.) The parties do not dispute the trial court's factual findings. The sole issue raised on defendants' appeal is that the trial court's factual findings as a matter of law do not permit a conclusion that a franchise relationship within the meaning of the CFIL existed between the parties. Safeguard argues that because plaintiffs lacked the authority to enter into binding sales contracts, did not transfer title to goods, and…