685 – Escrows and Impoundments.

§  685.  Escrows and impoundments. If the department of law finds that
  the applicant for registration 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 department may require the escrow or
  impoundment  of franchise fees and other funds paid by the franchisee or
  subfranchisor until the obligations are fulfilled, or, at the option  of
  the  franchisor,  the furnishing of a surety bond as provided by rule of
  the department of law if it finds that the requirement is necessary  and
  appropriate to protect prospective franchisees or subfranchisors.