§ 19-28.1-9. General registration provisions.
(a) A registration application must include the disclosure document, the filing fee, and
the consent to service of process. The director may require the filing of audited
financial statements examined and reported upon by an independent certified public
accountant and prepared in accordance with generally accepted accounting principles
and of additional documents or disclosures.
(b) If the franchisor fails to demonstrate to the director the franchisor's financial
ability to fulfill its initial obligations to franchisees, the director may require
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§ 19-28.1-9. General registration provisions.
(a) A registration application must include the disclosure document, the filing fee, and
the consent to service of process. The director may require the filing of audited
financial statements examined and reported upon by an independent certified public
accountant and prepared in accordance with generally accepted accounting principles
and of additional documents or disclosures.
(b) If the franchisor fails to demonstrate to the director the franchisor's financial
ability to fulfill its initial obligations to franchisees, the director may require
an escrow of funds paid by the franchisee or subfranchisor to the franchisor or its
affiliate until the franchisor performs its initial obligations and the franchisee
has commenced operations. The director may allow alternatives to escrow.
(c)(1) Except as provided in subsection (c)(2), if no order under § 19-28.1-18 or § 19-28.1-19 is in effect, a franchise registration application is effective on the thirtieth
business day after filing of the application of the last amendment to the application
or at an earlier time ordered by the director unless the applicant requests postponement
of effectiveness of the application or the director has made a good faith effort to
communicate why the application does not meet the requirements of this act.
(2) If the director requires the submission of additional information under § 19-28.1-9, 19-28.1-11 — 19-28.1-13, or 19-28.1-26 before the franchise registration application becomes effective under subsection
(c)(1) and if no order under § 19-28.1-18 or § 19-28.1-19 is in effect, the application becomes effective on the fifteenth business day after
the additional information is filed with the director, or at any earlier time the
director determines, unless the applicant requests postponement of the effectiveness
of the application.
(d) Registration of a franchise under this act expires one hundred twenty (120) calendar
days after the end of the franchisor's fiscal year following the application date,
unless the director prescribes a different period by rule or order. A franchise registration
may be renewed for one year or a shorter period if designated by the director by filing
an application to renew thirty (30) days prior to the expiration of the registration.
(e) An applicant or registrant may withdraw a franchise registration application, or franchise
registration if it files a written request for withdrawal with the director. Withdrawal
is effective fifteen (15) business days from the day on which the withdrawal request
is filed with the director.
(f) The director may accept the examination of a registration application by another state
administrator as complying with this act.