Section 685. Escrows and impoundments  


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  • 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.