Illinois is a Franchise Registration State. The initial FDD filing fee is $500 and the annual FDD renewal fee is $100.
Illinois is a franchise registration state and has enacted franchise laws. Under Illinois franchise law, before offering or selling a franchise in the state you must first register your FDD with the Franchise Bureau of the Illinois Attorney General. The Franchise Bureau oversees the FDD registration process and enforcement of Illinois’s franchise laws. The initial FDD registration filing fee is $500 and the annual renewal fee is $100. Registration lasts for one year and requires annual renewal at the earlier of your one-year registration anniversary or within 120 days of your fiscal year end.
Under Illinois Law, 815 ILCS 705/3 of the Illinois Franchise Disclosure Act defines a franchise as including any written or oral agreement that expressly or implicitly provides for the marketing, sale or distribution of products or services: (a) under a marketing plan or system that is prescribed or suggested in substantial part by the franchisor; (b) that are substantially associated with the franchisor’s trademark; and (c) that involves the direct or indirect payment of a franchise fee of $500 or more. What qualifies as a franchise fee is broadly defined. The Illinois Franchise Disclosure Act is limited to franchise transactions that occur within the state, involve residents of the state, and/or involve franchised businesses that will be located or operated within the state. The Illinois Disclosure Act also exempts and excludes from its regulatory reach certain transactions that include fractional franchises, on-premises concessions, certification and testing services, and transactions involving the Petroleum Marketing Practices Act.
To learn more about Illinois FDD registration and how we can help, contact us at (718) 979-8688 or by email.
The Franchise Bureau of the Illinois Attorney General regulates and oversees enforcement of the Illinois Franchise Disclosure Act, including mandatory FDD registration requirements and compliance with Illinois’s franchise relationship laws.
Your initial FDD registration application should include the following forms and documents:
Your Illinois registration application must comply with the Franchise Registration and Disclosure Guidelines published by NASAA and, effective January 1, 2020 must adopt and include the new NASAA Franchise State Cover Sheet.
The Initial FDD Registration Fee is $500 and the annual FDD Renewal Fee is $100. The fee for filing an FDD amendment is $100,
FDD registration applications must be filed with the Franchise Bureau at the following address: Franchise Bureau of the Illinois Attorney General, 500 South Second Street, Springfield, IL 62706.
The telephone number for the Franchise Bureau is (217) 782–4465.
Once your registration application is fully submitted, a Franchise Examiner will be assigned to review your application and the disclosures contained in your FDD. Illinois examiners are quite thorough in their review of FDDs and FDD applications.
Once your application is received by the Franchise Bureau, a Franchise Examiner will be assigned to your application and you should expect an initial response within 21 days. The initial response that you will receive from your assigned Franchise Examiner will, most likely, advise you of FDD revisions required by the Examiner. Many of these revisions will relate to Illinois’s Franchise Disclosure Act and the requirements of Illinois’s franchise relationship laws. Upon satisfaction of the Examiner’s conditions, you will receive a written notice acknowledging that registration is granted. The Examiner’s notice will also advise you of the registration effective date and the registration renewal date.
Ultimately, the length of time it will take for your registration application to be approved will depend on the completeness of your FDD and how timely you respond to the Examiner’s comments. Typically, you should expect the process to take 8 weeks.
Illinois FDD registration requirements and the Illinois Franchise Registration Disclosure Act apply where either: (a) the franchisee resides in Illinois (even if the franchised business will be located outside the state of Illinois), or (b) the offer of the franchise is made or accepted in Illinois and the franchised business is or will be located within the state.
If during the FDD registration or renewal process the Illinois examiner determines that your franchise company possesses insufficient capital , the examiner will impose financial assurance requirements as a condition for your FDD registration. Common financial assurance requirements include your agreement to defer the initial franchise fees, escrowing the initial franchise fee, or the posting of a bond. Many times you will have the ability to choose between the three of these options however, in practice, deferral of the initial franchise fee is the most expedient and available option for start-up and emerging franchisors.
Illinois franchise law imposes franchisee relationship obligations on franchisors. These laws prohibit certain actions on the part of the franchisor such as prohibiting disparate treatment of franchisees, and limiting franchisor termination and non-renewal rights. Below is a summary of some of Illinois’ franchise relationship obligations and prohibitions:
Visit our interactive franchise registration map and learn more about state franchise laws, FDD registration states, and required franchise filings.
To learn more about Illinois franchise law and registration, contact us at (800) 979-8688 or contact us online.
Are you a franchisor or a part of a franchise sales team? Do you want to learn more about franchise sale compliance and ensure that your sales practices comply with franchise laws and are consistent with best practices? Then this guide is for you. In this guide you’ll learn the... read more
In this guide you’ll learn the basics of franchising, how to franchise your business, and how to win at franchising. We’ll also take a deeper dive into legal requirements for franchising and why they matter, steps to take before and after you launch your franchise, and even some tips on... read more
When considering expanding a business both franchising and licensing are possible options. In this guide, you'll learn the differences of franchising and licensing and understand how each will affect you. read more
Are you considering franchising your business? If so, its important to understand the advantages and disadvantages of franchising your business. Franchising is a legal and business model designed to achieve multi-unit expansion. Compared to organic expansion where you invest in and open multiple locations yourself, franchising allows you to recruit... read more
The documents to franchise your business include the franchise disclosure document (FDD), franchise agreement, operations manual, financial statements, and state specific registration applications. Below we discuss each franchise document in detail. 1. Franchise Disclosure Document Before you can offer or sell a franchise you are required to issue and disclose... read more
Franchising may be the next big step for your business and represents an opportunity to grow your brand. So, how do you know if franchising is right for you? How do you know if your business is franchisable and, if it is, whether or not you should franchise your business?... read more
In this webinar, Charles Internicola and Laura Meyer, founder of Joybrand Creative, talk about how to position your brand to win at franchise sales. Some topics include: How franchisors can develop their brand strategy How to differentiate your brand strategy between your targeted end-user customers and prospective franchisees for franchise... read more
In this webinar, Charles N. Internicola, Esq. and Lisa Welko, CFE of Integrity Franchise Group discuss what it takes to make your brand attractive to franchise brokers and sell to qualified franchisees. Selling franchises and building a durable franchise system - all comes down to being a "good franchisor," making... read more
Key strategies to accelerate franchise growth for startup and emerging franchisors In this webinar, franchise attorney Charles Internicola and Nick Powills, founder of No Limit Agency and 1851 Franchise, discuss key strategies to accelerate franchise growth through PR and digital media. Some topics include: Steps franchisors should take when it... read more
With services to make your growth strategy simple, cost effective, and with a team excited to help you, let’s talk about how we can help grow your business.
Fill out the following form and we’ll contact you as soon as possible. To reach our team directly, give us a call at (800) 976-4904.
An attorney client relationship is not established by submitting this initial contact information.