California Code of Regulations
Title 10 - Investment
Chapter 3 - Commissioner of Financial Protection and Innovation
Subchapter 2.6 - Franchises
Section 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.
1. Amendment filed 12-28-73 as an emergency; designated effective 1-1-74. Certificate of Compliance included (Register 73, No. 52).
Note: Additional authority cited: Section 31502, Corporations Code. Reference: Section 31113, Corporations Code.