AB782-AA3-AA1,1,146
553.27
(2) If the division finds that the applicant has failed to demonstrate that
7adequate financial arrangements have been made to fulfill obligations to provide
8real estate, improvements, equipment, inventory, training or other items included
9in the offering
and if the franchisee so requests, the division may by rule or order
10require the escrow of franchise fees and other funds paid by the franchisee or
11subfranchisor until no later than the time of opening of the franchise business, or,
12at the option of the franchisor, the furnishing of a surety bond as provided by rule of
13the division, if the division finds that such requirement is necessary and appropriate
14to protect prospective franchisees or subfranchisors.".