2020 Indiana Code
Title 23. Business and Other Associations
Article 2. Securities and Franchises
Chapter 2.5. Franchises
23-2-2.5-12. Escrow or Impoundment of Franchise Fees; Inadequate Funding

Universal Citation: IN Code § 23-2-2.5-12 (2020)

Sec. 12. If the commissioner finds that:

(1) the franchisor 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; and

(2) the escrow or impoundment of franchise fees is necessary and appropriate to protect prospective franchisees;

the commissioner may by order require the escrow or impoundment of franchise fees and other funds paid by the franchisee until no later than the time of opening of the business of the franchisee.

Formerly: Acts 1975, P.L.262, SEC.1. As amended by P.L.168-2001, SEC.4.

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