Cal. Code Regs. Tit. 10, § 310.113 - Imposition of Impound

In a case where the applicant has failed to demonstrate that adequate financial arrangements have been made to fulfill obligations to provide real estate, improvements, equipment, inventory, training or other items included in the offering, the Commissioner may impose as a condition to the registration of a franchise offering an impoundment of the franchise fees and other funds paid by the franchisee or subfranchisor until such obligations have been satisfied.

Notes

Cal. Code Regs. Tit. 10, § 310.113

Note: Additional authority cited: Section 31502, Corporations Code. Reference: Section 31113, Corporations Code.

1. Amendment filed 12-28-73 as an emergency; designated effective 1-1-74. Certificate of Compliance included (Register 73, No. 52).