Illinois Franchise Registration: How Illinois Negotiations may Subject your Franchise to Regulation
Illinois is a franchise registration state. Accordingly, prior to "offering" or "selling" a Franchise in or from the State of Illinois your current FDD must be registered with the Illinois Secretary of State.
When considering the regulatory requirements respecting the registration of your Franchise disclosure document it is critical to recognize that Illinois registration requirements may apply even if your prospective Franchisee will be operating outside the State of Illinois. The mere act of "offering" a Franchise through negotiations in the State of Illinois or accepted in the State of Illinois will subject your Franchise to Illinois regulation requiring registration. According to Illinois Franchise Disclosure Act a franchisor may not sell or offer to sell a franchise in the State of Illinois if either of the following is true:
The franchisee is domiciled in the State of Illinois; or
The offer of the franchise is made or accepted in the State of Illinois and the franchise business is or will be located in the State of Illinois, unless the franchisor has registered the franchise with the Administrator by filing such form of notification and disclosure statement as required under Section 16 (form and contents of disclosure documents).
For additional information about franchise registration or franchising a business request a complimentary copy of "The Franchise Formula: A Guide to Franchising Your Business in the New Economy" by franchise lawyer Charles Internicola, Esq. For immediate assistance contact our franchise law firm which offers representation to franchisors nationwide at 1-800-976-4904.
IMPORTANT DISCLAIMER: The information contained on this website is provided for general educational purposes only, should not be relied on as legal advice and does not serve to create an attorney client relationship. In utilizing this website you acknowledge that there is no attorney client relationship between you
and Charles N. Internicola, Esq. and that the information contained on this site does not and cannot serve as a replacement for the competent legal advice of a licensed attorney in your state. Further you acknowledge that any and all citations to cases and statutes must be independently verified by competent legal counsel to confirm the validity and accuracy of such information. The content of this site is subject to the Copyright of its author and owner, Charles N. Internicola, Esq.
