815 ILCS 602/5-10
2021 Illinois Compiled Statutes|Chapter 815 - BUSINESS TRANSACTIONS|815 ILCS 602/ - Business Opportunity Sales Law of 1995.|Article 5

Sec. 5-10. Exemptions. Registration pursuant to Section 5-30  shall not apply to any of the  following:(a) Any offer or sale of a business opportunity for which  the immediate cash payment made by the purchaser for any  business opportunity is at least $25,000 if the immediate cash  payment does not exceed  20% of the purchaser's net worth as  determined exclusive of principal residence, furnishings  therein, and automobiles; provided, however, the Secretary of  State may by rule or regulation withdraw or further condition  the availability of this exemption.(b) Any offer or sale of a business opportunity which  the seller does not advertise, solicit, or sell for an initial payment to the seller or a  person recommended by the seller exceeding $500.(c) Any offer or sale of a business opportunity where the  seller has a net worth of not less than $1,000,000 as determined  on the basis of the seller's most recent audited financial  statement, prepared within 13 months of the first offer in this  State. Net worth may be determined on a consolidated basis where  the seller is at least 80% owned by one person and that person  expressly guarantees the obligations of the seller with regard  to the offer or sale of any business opportunity claimed to be  exempt under this subsection. The Secretary of State may by rule  or regulation withdraw or further condition the availability of  this exemption.(d) Any offer or sale of a business opportunity where the  purchaser has a net worth of not less than $250,000. Net worth  shall be determined exclusive of principal residence,  furnishings therein, and automobiles. The Secretary of State may  by rule or regulation withdraw or further condition the  availability of this exemption.(e) Any offer or sale of a business opportunity where the  purchaser is a bank, savings and loan association, trust  company, insurance company, credit union, or investment company  as defined by the federal Investment Company Act of 1940,  pension or profit sharing trust, or other financial institution  or institutional buyer, or a dealer registered under the  Illinois Securities Law of 1953,  where the purchaser is acting for itself or in a fiduciary  capacity.(f) Any offer or sale of a business opportunity which is  defined as a franchise under the Franchise Disclosure Act of 1987 provided that  the seller delivers to each purchaser 14 days prior to the earlier  of the execution by a purchaser of any contract or agreement  imposing a binding legal obligation on the purchaser or the  payment by a purchaser of any consideration in connection with  the offer or sale of the business opportunity, a disclosure document prepared in accordance with the requirements of Section 16 of the Illinois Franchise Disclosure Act of 1987, as it may be amended.(g) Any offer or sale of a business opportunity for which  the cash payment required to be made by a purchaser for any business  opportunity does not exceed $500 and the payment is made for the  not-for-profit sale of sales demonstration equipment, material,  or samples or the payment is made for product inventory sold to  the purchaser at a bona fide wholesale price.(h) Any offer or sale of a business opportunity which the  Secretary of State exempts by order or a class of business  opportunities which the Secretary of State exempts by rule or  regulation upon the finding that such exemption would not be  contrary to public interest and that registration would not be  necessary or appropriate for the protection of purchasers.  (Source: P.A. 96-648, eff. 10-1-09.)