Indiana Code 23-2-2.5-12. Escrow or impoundment of franchise fees; inadequate funding
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Sec. 12. If the commissioner finds that:
(2) the escrow or impoundment of franchise fees is necessary and appropriate to protect prospective franchisees;
(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
Terms Used In Indiana Code 23-2-2.5-12
- Commissioner: means the Indiana securities commissioner under IC 23-19-6-1(a). See Indiana Code 23-2-2.5-1
- Escrow: Money given to a third party to be held for payment until certain conditions are met.
- Franchise: includes a contract whereby the franchisee is granted the right to sell franchises on behalf of the franchisor. See Indiana Code 23-2-2.5-1
- Franchisee: means a person to whom a franchise is granted. See Indiana Code 23-2-2.5-1
- Franchisor: means a person who grants a franchise. See Indiana Code 23-2-2.5-1
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.