Section R. 445.304 - Release of escrowed fundsRule 304.
(1) The administrator shall authorize the depository to release to the franchisor those amounts of the escrowed funds applicable to a specified franchisee or subfranchisor upon a showing satisfactory to the administrator that the franchisor has fulfilled its obligations under the franchise agreement to establish the franchise, or that the escrow is not required for the protection of the franchisee.(2) An application for an order of the administrator authorizing the release of escrowed funds to the franchisor shall be verified and shall contain:(a) A statement of the franchisor that required proceeds from the sale of franchises have been placed with the depository in accordance with the terms and conditions of the escrow agreement.(b) A franchisee's verified statement of completion of franchisor's obligations for release of funds from escrow.(c) A statement of the depository signed by an appropriate officer setting forth the aggregate amount of escrowed funds placed with the depository when required by the administrator.(d) The names of each franchisee or subfranchisor and the amount held in escrow for the account of the franchisee or subfranchisor.(e) A showing that the franchisor, with respect to a franchise, the funds for which are sought to be released, has completely performed obligations, cited by reference to the franchise agreement and its provisions, to provide real estate, improvements, equipment, inventory, training, or other items.(f) Other information the administrator may reasonably require.(3) If the administrator finds that any conditions of this agreement have not been satisfied or that any provisions of the Michigan franchise investment law or rules have not been complied with, or the registration of the franchises has been revoked, then the administrator may withhold such authorization for release of funds by the escrow agent to the franchisor and may direct the full return of funds by the escrow agent to the franchisees.Mich. Admin. Code R. 445.304