1.Applications for registration, registration renewal statements, and amendments thereto
must be signed and notarized by the franchisor or by the subfranchisor.
2.If the commissioner finds that it is necessary and appropriate for the protection of
prospective franchisees or subfranchisors because the applicant has failed to
demonstrate that adequate financial arrangements have been made to fulfill the
franchisor's obligations to provide real estate, improvements, equipment, inventory,
training, or other items included in the offering, the commissioner may by rule or order
require the escrow or impoundment of franchise fees and other funds paid by the
franchisee or subfranchisor until such obligations have been satisfied. The franchisor
may, at the franchisor's option, furnish an adequate
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1. Applications for registration, registration renewal statements, and amendments thereto
must be signed and notarized by the franchisor or by the subfranchisor.
2. If the commissioner finds that it is necessary and appropriate for the protection of
prospective franchisees or subfranchisors because the applicant has failed to
demonstrate that adequate financial arrangements have been made to fulfill the
franchisor's obligations to provide real estate, improvements, equipment, inventory,
training, or other items included in the offering, the commissioner may by rule or order
require the escrow or impoundment of franchise fees and other funds paid by the
franchisee or subfranchisor until such obligations have been satisfied. The franchisor
may, at the franchisor's option, furnish an adequate surety bond as provided by rule of
the commissioner.
3. The commissioner shall have power to place such conditions, limitations, and
restrictions on any registration as may be necessary to carry out the purposes of this
chapter.
4. a. If no stop order under section 51-19-09 is in effect under this chapter, registration
of the offer of franchises becomes effective after the filing of the application for
registration or the last amendment thereto and upon entry by the commissioner
into the register of franchises.
b. A franchise offering must be deemed duly registered for a period of one year from
the effective date of the registration, unless the commissioner by order or rule
specifies a different period.
5. a. The registration may be renewed for additional periods of one year each, unless
the commissioner by rule or order specifies a different period, by submitting to the
commissioner a registration renewal statement no later than fifteen business days
prior to the expiration of the registration unless such period is waived by order of
the commissioner. If no stop order or other order under section 51-19-09 is in
effect under this chapter, registration of the offer of the franchises becomes
renewed upon entry by the commissioner into the register of franchises.
b. The registration renewal statement must be in the form prescribed by the
commissioner and must be accompanied by a proposed prospectus. Each such
registration renewal statement must be accompanied by the fee prescribed in
section 51-19-17.
6. a. A franchisor shall promptly notify the commissioner in writing, by an application to
amend the registration, of any material change in the information contained in the
application as originally submitted, amended, or renewed. The commissioner may
by rule further define what shall be considered a material change for such
purposes and the circumstances under which a revised prospectus must
accompany such application.
b. An amendment to an application filed after the effective date of the registration of
the sale of franchises, if such amendment is approved by the commissioner,
becomes effective on such date as the commissioner may determine, having due
regard for the public interest and the protection of franchisees.