California Code of Regulations
Title 10 - Investment
Chapter 3 - Commissioner of Financial Protection and Innovation
Subchapter 2.6 - Franchises
Section 310.113.4 - Release of Impounds
Current through Register 2024 Notice Reg. No. 12, March 22, 2024
The Commissioner will authorize the depositary to release to the franchiser such amounts of the impounded funds applicable to a specified franchisee (or subfranchisor) upon a showing that the franchiser has fulfilled its obligations under the franchise agreement, or that for other reasons the impound is no longer required for protection of franchisees.
Any request for an order of the Commissioner authorizing the release of impounds to the franchiser shall contain the following:
(a) A statement of the franchiser that all required proceeds from the sale of franchises have been placed with the depositary in accordance with the impound condition.
(b) A statement of the depositary signed by an appropriate officer setting forth the aggregate amount of impounds placed with the depositary.
(c) The names of each franchisee (or subfranchisor) and the amount held in the impound for the account of each franchisee (or subfranchisor).
(d) A showing that the franchiser, with respect to each franchise the funds for which are sought to be released, has completely performed those obligations to provide real estate, improvements, equipment, inventory, training or other items, as the case may be.
(e) Such other information as the Commissioner may require in a particular case.
(f) A statement signed by the franchisee (or subfranchisor) that the information is correct.
1. Amendment filed 10-28-82; effective thirtieth day thereafter (Register 82, No. 44).
Note: Authority cited: Section 31502, Corporations Code. Reference: Section 31113, Corporations Code.
