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.
‹ Prev All North Dakota sections Next ›
Lexace provides legal information, not legal advice, and no attorney–client relationship is created. Statute text is provided for general information and may not reflect the most recent amendments; verify against the official state code.