§ 19-28.1-9 - General registration provisions.
SECTION 19-28.1-9
§ 19-28.1-9 General registrationprovisions. – (a) A registration application must include the disclosure document, the filingfee, and the consent to service of process. The director may require the filingof audited financial statements examined and reported upon by an independentcertified public accountant and prepared in accordance with generally acceptedaccounting principles and of additional documents or disclosures.
(b) If the franchisor fails to demonstrate to the directorthe franchisor's financial ability to fulfill its initial obligations tofranchisees, the director may require an escrow of funds paid by the franchiseeor subfranchisor to the franchisor or its affiliate until the franchisorperforms its initial obligations and the franchisee has commenced operations.The director may allow alternatives to escrow.
(c) Except as provided in subdivision (2), if no order under§ 19-28.1-18 or 19-28.1-19 is in effect, a franchise registrationapplication is effective on the thirtieth business day after filing of theapplication of the last amendment to the application or at an earlier timeordered by the director unless the applicant requests postponement ofeffectiveness of the application or the director has made a good faith effortto communicate why the application does not meet the requirements of this act.
(2) If the director requires the submission of additionalinformation under § 19-28.1-9, 19-28.1-11 – 19-28.1-13, or 19-28.1-26before the franchise registration application becomes effective undersubdivision (1) and if no order under § 19-28.1-18 or 19-28.1-19 is ineffect, the application becomes effective on the fifteenth business day afterthe additional information is filed with the director, or at any earlier timethe director determines, unless the applicant requests postponement of theeffectiveness of the application.
(d) Registration of a franchise under this act expires onehundred twenty (120) calendar days after the end of the franchisor's fiscalyear following the application date, unless the director prescribes a differentperiod by rule or order. A franchise registration may be renewed for one yearor a shorter period if designated by the director by filing an application torenew thirty (30) days prior to the expiration of the registration.
(e) An applicant or registrant may withdraw a franchiseregistration application, or franchise registration if it files a writtenrequest for withdrawal with the director. Withdrawal is effective fifteen (15)business days from the day on which the withdrawal request is filed with thedirector.
(f) The director may accept the examination of a registrationapplication by another state administrator as complying with this act.