reglab/statecodes huggingface dataset:
Illinois Administrative Code › Title 14 - COMMERCE › Part 200 - FRANCHISE DISCLOSURE ACT › Subpart D - HEARINGS › Section 200.406 - Requirements Relating to Continuances

Current through Register Vol. 48, No. 28, July 12, 2024
Certain costs are incurred by the Administrator when a
				  scheduled hearing is continued to another time. Therefore, the requirements for
				  a continuance are as follows:
a) All
				requests for a continuance shall be in writing and must be received by the
				Administrator at least three days prior to the assigned hearing date;
b) A party requesting a continuance shall
				serve a copy of the request on all parties;
c) Continuances will be granted by the
				Administrator upon a showing of:
1) Illness
				of the parties or attorneys,
2)
				Death in the immediate family of the parties or attorneys,
3) Unalterable court appearances by the
				attorneys, or
4) Undue hardship or
				inconvenience to either the parties or the hearing officer.
Illinois Administrative Code › Title 14 - COMMERCE › Part 200 - FRANCHISE DISCLOSURE ACT › Subpart D - HEARINGS › Section 200.407 - Rules of Evidence in Hearings

Current through Register Vol. 48, No. 28, July 12, 2024
a) Irrelevant, immaterial or unduly
				repetitious evidence shall be excluded. The rules of evidence and privilege as
				applied in civil cases in the Circuit Courts of this State shall be followed.
				However, evidence not admissible under such rules of evidence may be admitted
				(except where precluded by statute) if it is of a type commonly relied upon by
				reasonably prudent persons in the conduct of their affairs. Objection to
				evidentiary offers may be made and shall be noted in the record. Subject to
				these requirements, when a hearing will be expedited and the interests of the
				parties will not be prejudiced, any part of the evidence may be received in
				written form.
b) Subject to the
				evidentiary requirements of subsection (a) of this Section, a party may conduct
				cross-examinations required for a full and fair disclosure of the
				facts.
c) Notice may be taken of
				matters of which the Circuit Courts of this State may take judicial notice.
				Parties shall be notified either before or during the hearing, or by reference
				in preliminary reports or otherwise, of the material noticed, including any
				staff memoranda or data, and they shall be afforded an opportunity to contest
				the material so noticed.
Illinois Administrative Code › Title 14 - COMMERCE › Part 200 - FRANCHISE DISCLOSURE ACT › Subpart D - HEARINGS › Section 200.408 - Record of Proceedings

Current through Register Vol. 48, No. 28, July 12, 2024
a) At each
				hearing, a licensed court reporter may be called by the Administrator, or a
				sound recording may be made, to create a permanent and complete record of the
				proceedings.
b) Upon request, and
				at the party's own expense, any party may have a copy of the record.
Illinois Administrative Code › Title 14 - COMMERCE › Part 200 - FRANCHISE DISCLOSURE ACT › Subpart D - HEARINGS › Section 200.409 - Record of Hearing

Current through Register Vol. 48, No. 28, July 12, 2024
The record of hearing shall include:
a) Offers of proof, objections, and rulings
				thereon;
b) All pleadings
				(including all pre-hearing and post-hearing notices and responses thereto,
				admissions, stipulations of facts, motions and rulings thereon);
c) A statement of matters officially
				noted;
d) Evidence received
				including testimony;
e) All
				memoranda or data submitted to the Hearing Officer;
f) Any opinion, report, or recommendation of
				the Hearing Officer to the Administrator or the Administrator's
				representative;
g) The findings of
				fact and law and final order entered by the Administrator.
Illinois Administrative Code › Title 14 - COMMERCE › Part 200 - FRANCHISE DISCLOSURE ACT › Subpart D - HEARINGS › Section 200.410 - Duties of Hearing Officer

Current through Register Vol. 48, No. 28, July 12, 2024
a) The
				Hearing Officer shall have authority to conduct the hearing, to entertain and
				rule upon motions, to administer oaths, to examine witnesses, and to rule upon
				the admissibility of evidence.
b)
				The Hearing Officer shall rule on procedure, make findings of fact and law, and
				issue a recommendation to the Administrator within one (1) month of the close
				of the hearing.
Illinois Administrative Code › Title 14 - COMMERCE › Part 200 - FRANCHISE DISCLOSURE ACT › Subpart D - HEARINGS › Section 200.411 - Final Administrative Decision

Current through Register Vol. 48, No. 28, July 12, 2024
a) A final administrative decision shall be
				issued by the Administrator in writing within one month of receipt of the
				Hearing Officer's recommendation. The Hearing Officer's recommendation, rulings
				and findings of fact and law are to be taken into account but are not binding
				on the Administrator. However the final administrative decision must be based
				exclusively on evidence in the record. The Administrator may refuse to accept
				the factual recommendations of the Hearing Officer only when all the evidence,
				viewed most favorably to the party for whom the Hearing Officer held, so
				overwhelmingly favors the other party, that no contrary holding based on that
				evidence could withstand Administrative Review under the Administrative Review
				Act because the findings of fact of the Hearing Officer are against the
				manifest weight of the evidence. A copy of the final administrative decision
				shall be sent by certified or registered mail to each party or each party's
				representatives.
b) The final
				administrative decision shall include findings of fact and conclusions of law,
				separately stated. Findings of fact, if set forth in statutory language, shall
				be accompanied by a concise and explicit statement of the underlying facts
				supporting the findings.
c) The
				final order of the Administrator shall constitute a final administrative
				decision within the provisions of the Administrative Review Act [735 ILCS 5
				/Art. III].
Illinois Administrative Code › Title 14 - COMMERCE › Part 200 - FRANCHISE DISCLOSURE ACT › Subpart E - DENIAL BASED ON FINANCIAL STATEMENTS, ESCROW, GUARANTY, SURETY BOND › Section 200.500 - Assurance of Financial Ability to Fulfill Obligations

Current through Register Vol. 48, No. 28, July 12, 2024
a) If, after examination of the financial
				statements of the franchisor and the duties and obligations of the franchisor
				contained in the franchise or other agreement to furnish goods and/or services
				to assist its franchisees in establishing and opening their business, the
				Administrator determines that adequate financial resources are not available to
				the franchisor for the performance of said obligations or that the franchisor
				will depend primarily on the initial franchise fees paid by franchisees as such
				financial resources (the franchisor has no other apparent source of income or
				assets), the Administrator will require the franchisor at the franchisor's
				option to assure financial capability by one of the following means: an escrow
				of funds, guaranty of performance, the posting of a surety bond, the issuance
				of a Certificate of Deposit, or the deferral of the initial franchise fees
				until the franchisor has met its obligations to the franchisee and the
				franchisee has commenced doing business.
b) When determining whether adequate
				financial resources are available, the Administrator shall give consideration
				to the applicant's recent financial statements. The following criteria shall be
				considered in making the determination: the auditor's opinion letter or review
				report, notes to the financial statements, the current ratio, the quick ratio,
				the amount of working capital, the proportion of tangible and intangible
				assets, the amount and maturities of debts, the debt/equity ratio, the amount
				of equity, the earnings history, the proportion of receivables compared to
				other assets, and the quality of receivables (e.g., financial statements
				reflect receivables that will not be collected, including bad debts, a debt
				discharged in bankruptcy, or the failure to allow for aged
				receivables).
c) Registration under
				the provisions of this Section shall be limited to the sale of the number of
				franchises authorized by the Administrator. The Administrator will make that
				decision based upon the franchisor's demonstrated willingness to fulfill its
				obligations to a specific number of franchises.
Illinois Administrative Code › Title 14 - COMMERCE › Part 200 - FRANCHISE DISCLOSURE ACT › Subpart E - DENIAL BASED ON FINANCIAL STATEMENTS, ESCROW, GUARANTY, SURETY BOND › Section 200.502 - Escrow of Funds

Current through Register Vol. 48, No. 28, July 12, 2024
When a franchisor chooses the escrow of franchise fees to
				  comply with financial assurance requirements, the escrow account shall comply
				  with the following requirements:
a)
				Checks shall be made payable to the escrowee by the franchisee;
b) The account shall be established in a
				federally insured bank, and the funds shall be kept and maintained in an
				account separate and apart from the franchisor's business and personal
				accounts;
c) The escrowed funds
				shall not be subject to any liens or charges by the escrowee or judgments,
				garnishments, or creditor's claims against the franchisor as hereinafter
				provided. This escrow is for the benefit of each franchisee in the amount paid
				by each franchisee;
d) At the
				request of the Administrator, statements indicating the status of the escrow
				shall be furnished by the bank or trust company to the Administrator;
e) An escrow agreement in the form set forth
				in Appendix C, Illustration A hereto, shall be entered into between the bank
				and the franchisor, which shall state that its purpose is to protect the
				franchisee and shall authorize the Administrator to inspect the records of the
				bank as escrowee relating thereto, and shall state that, upon order of the
				Administrator or a court of competent jurisdiction, the escrowee shall release
				and pay over the funds, or a portion thereof, to the franchisor or franchisee;
				and
f) The escrow shall remain in
				effect as to the respective franchisee/franchisor relationships until the
				initial obligations of the franchisor to assist the franchisee to establish and
				open the franchisee's business are fulfilled.
Illinois Administrative Code › Title 14 - COMMERCE › Part 200 - FRANCHISE DISCLOSURE ACT › Subpart E - DENIAL BASED ON FINANCIAL STATEMENTS, ESCROW, GUARANTY, SURETY BOND › Section 200.503 - Release of Escrowed Funds

Current through Register Vol. 48, No. 28, July 12, 2024
a) A
				franchisor shall petition for release of escrowed funds by use of the form
				attached as Appendix C, Illustration B. Upon receipt of such petition, the
				Administrator will send notice of it to the franchisee advising the franchisee
				that any objection that the franchisee may have to the petition must be filed
				in writing and received by the Administrator within 30 days after the date the
				notice is sent. The Administrator shall issue a "no exception notice"
				authorizing the escrowee to release to the franchisor the escrowed funds
				applicable to a specified franchisee upon a showing that the franchisor has
				fulfilled its initial obligations under the franchise or other agreements to
				establish such franchise and that the franchisee has commenced doing business
				pursuant to the franchise agreement. The "no exception notice" shall state that
				the Administrator has no objection to the release of the funds to the
				franchisor.
b) A franchisee shall
				petition for release by use of the form attached as Appendix C, Illustration C.
				Upon receipt of such petition, the Administrator will send notice of it to the
				franchisor advising it that any objection it may have to the petition must be
				filed in writing and received by the Administrator within 30 days after the
				date the notice is sent. The Administrator shall issue a "no exception notice"
				authorizing the escrowee to release to the franchisee the escrowed funds
				applicable to each franchisee upon a showing that the franchisor has failed to
				fulfill its initial obligations under the franchise or other agreement to the
				franchise and that the franchisee has not commenced doing business. The "no
				exception notice" shall state that the Administrator has no objection to the
				release of funds to the franchisee.
c) An order of the Administrator releasing
				funds held in escrow to the franchisor or franchisee shall not be considered a
				finding of any fact and shall not constitute evidence of any such finding of
				fact in any judicial or arbitration proceeding.
d) If the Administrator receives a timely
				objection to the release of the escrowed funds, the Administrator shall not
				order the funds released from escrow until such time as the objection is
				resolved by either settlement, court order, or decision of
				arbitrator.
Illinois Administrative Code › Title 14 - COMMERCE › Part 200 - FRANCHISE DISCLOSURE ACT › Subpart E - DENIAL BASED ON FINANCIAL STATEMENTS, ESCROW, GUARANTY, SURETY BOND › Section 200.504 - Guarantee of Performance

Current through Register Vol. 48, No. 28, July 12, 2024
a) If the
				franchisor can make arrangements with any other individual, partnership or
				corporation whose financial statements demonstrate an ability to perform the
				franchisor's obligations as contained in the franchise or other agreement, the
				Administrator will accept a guaranty of performance in the form set forth in
				Appendix D, Illustration A from such other individual, partnership or
				corporation;
b) The guarantor shall
				submit, in addition to the guaranty of performance, the resolution of its
				governing body authorizing the guaranty, the certificate of its Secretary as to
				such resolution, and a consent to service of process and acknowledgment for the
				guarantor in the form set forth in Appendix D, Illustrations B and C and
				Appendix A, Illustrations D, E and F hereto. The franchisor's disclosure
				statement shall include those financial statements of the guarantor which,
				absent a guaranty, the U.F.O.C. or F.T.C. prospectus requires of the
				franchisor.
Illinois Administrative Code › Title 14 - COMMERCE › Part 200 - FRANCHISE DISCLOSURE ACT › Subpart E - DENIAL BASED ON FINANCIAL STATEMENTS, ESCROW, GUARANTY, SURETY BOND › Section 200.505 - Performance or Surety Bond

Current through Register Vol. 48, No. 28, July 12, 2024
A franchisor who posts a surety bond shall do so in the form
				  of Appendix E hereto in an amount equal to the product of the initial
				  franchisee fee and the number of franchises the franchisor is authorized to
				  sell in Illinois in the ensuing registration year. The bond is to be issued by
				  a corporate surety authorized to transact business in Illinois. The bond shall
				  be conditioned upon the performance by the franchisor of its obligations under
				  the franchise and other agreements to furnish goods and/or services necessary
				  to establish and open the business of its franchisees and upon the franchisor's
				  compliance with the Act and this Part.
Illinois Administrative Code › Title 14 - COMMERCE › Part 200 - FRANCHISE DISCLOSURE ACT › Subpart E - DENIAL BASED ON FINANCIAL STATEMENTS, ESCROW, GUARANTY, SURETY BOND › Section 200.506 - Certificate of Deposit

Current through Register Vol. 48, No. 28, July 12, 2024
a) A
				franchisor who posts a Certificate of Deposit must post one Certificate of
				Deposit for each franchise that is authorized for sale by the Administrator.
				Each Certificate of Deposit shall be in an amount equal to the initial
				franchise fee.
b) Each Certificate
				of Deposit is to be deposited with a federally insured savings institution and
				issued in the name of the Administrator for the benefit of the franchisee. The
				Certificate and accrued interest thereon shall be renewed for such periods
				necessary to maintain it until such time that the Administrator determines that
				it may be released either to the franchisor or to franchisees upon notice to
				both parties.
Illinois Administrative Code › Title 14 - COMMERCE › Part 200 - FRANCHISE DISCLOSURE ACT › Subpart E - DENIAL BASED ON FINANCIAL STATEMENTS, ESCROW, GUARANTY, SURETY BOND › Section 200.507 - Release of Certificate of Deposit

Current through Register Vol. 48, No. 28, July 12, 2024
a) A franchisor petition for release of the
				Certificate of Deposit by use of the form attached as Appendix F, Illustration
				A. Upon receipt of such petition, the Administrator will send notice of it to
				the franchisee advising the franchisee that any objection that the franchisee
				may have to the petition must be filed in writing and received by the
				Administrator within 30 days after the date the notice is sent. The
				Administrator shall issue a "no exception notice" authorizing the bank to
				release to the franchisor the Certificate of Deposit applicable to a specified
				franchisee upon a showing that the franchisor has fulfilled its initial
				obligations under the franchise or other agreements to establish such franchise
				and that the franchise has commenced doing business pursuant to the franchise
				agreement. The "no exception notice" shall state that the Administrator has no
				objection to the release of the Certificate of Deposit to the
				franchisor.
b) A franchisee shall
				petition for release of the Certificate of Deposit by use of the form attached
				as Appendix F, Illustration B. Upon receipt of such petition, the Administrator
				will send notice of it to the franchisor advising it that any objection it may
				have to the petition must be filed in writing and received by the Administrator
				within 30 days after the date the notice is sent. The Administrator shall issue
				a "no exception notice" authorizing the bank to release to a franchisee the
				Certificate of Deposit applicable to the franchise agreement upon a showing
				that the franchisor has failed to fulfill its initial obligations under the
				franchise or other agreements to the franchisee and the franchisee has not
				commenced doing business. The "no exception notice" shall state that the
				Administrator has no objection to the release of the Certificate of Deposit to
				the franchisee.
c) An order of the
				Administrator releasing the Certificate of Deposit to the franchisor or
				franchisee shall not be considered a finding of fact and shall not constitute
				evidence of any such finding of fact in any judicial or arbitration
				proceeding.
d) If the Administrator
				receives a timely objection to the release of the Certificate of Deposit, the
				Administrator shall not order the Certificate of Deposit released until such
				time as the objection is resolved by either settlement, court order, or
				decision of arbitrator.
Illinois Administrative Code › Title 14 - COMMERCE › Part 200 - FRANCHISE DISCLOSURE ACT › Subpart E - DENIAL BASED ON FINANCIAL STATEMENTS, ESCROW, GUARANTY, SURETY BOND › Section 200.508 - Deferral of Franchise Fee

Current through Register Vol. 48, No. 28, July 12, 2024
A franchisor who defers the payment of initial franchise fees
				  pursuant to Section
				  200.500
				  of this part shall defer the payment of all initial franchise fees owed to the
				  franchisor, or its affiliate, by the franchisee until such time as all initial
				  obligations owed to the franchisee under the franchise agreement or other
				  agreements have been fulfilled by the franchisor and the franchisee has
				  commenced doing business pursuant to the franchise agreement.
Illinois Administrative Code › Title 14 - COMMERCE › Part 200 - FRANCHISE DISCLOSURE ACT › Subpart F - REGISTRATION REQUIREMENTS › Section 200.600 - Original Registration

Current through Register Vol. 48, No. 28, July 12, 2024
a)
				Documents to File
The following materials must be submitted to the
				  Administrator to obtain registration:
1) Uniform Franchise Registration Application
				Page, Appendix A, Illustration A;
2) Supplemental Information Page, Appendix A,
				Illustration B;
3) Sales Agent
				Disclosure Form for each sales agent employed by or affiliated with the
				applicant, Appendix A, Illustration C;
4) Uniform Consent to Service of Process
				naming the Illinois Attorney General as agent to receive service, with
				corporate, individual or partnership acknowledgment, Appendix A, Illustration
				D, E, F, G and H;
5) Certification
				Page, Appendix A, Illustration G;
6) Auditor's consent letter granting consent
				to use each audited report in the registration, Appendix A, Illustration
				H;
7) Uniform Franchise Offering
				Circular in duplicate current within 120 days and in compliance with UFOC
				Guidelines. Updated information pertaining to Items 20 or 21 may be submitted
				as an exhibit without changing the information already in these items;
				and
8) A $500 nonrefundable fee
				payable to the State of Illinois.
Illinois Administrative Code › Title 14 - COMMERCE › Part 200 - FRANCHISE DISCLOSURE ACT › Subpart F - REGISTRATION REQUIREMENTS › Section 200.603 - Annual Report

Current through Register Vol. 48, No. 28, July 12, 2024
a) To maintain
				the effectiveness of registration, a franchisor must file the Annual Report
				required by Section 10 of the Act no later than one business day prior to the
				anniversary date of the registration. The filing of the Annual Report shall
				include:
1) A non-refundable filing fee of
				$100;
2) Two complete unbound
				copies of the franchisor's Uniform Franchise Offering Circular updated as of
				120 days after the franchisor's anniversary date. The phase in of the Audit
				Requirement continues. If the required audited financial documents are not
				current within 120 days after the anniversary date, interim financials in a
				format consistent with GAAP, including a balance sheet and corresponding income
				statement for the period between the close of the franchisor's most recent
				fiscal year and the date of the balance sheet must be submitted. All material
				changes in the disclosure statement must be clearly marked on one copy of the
				UFOC. The updated UFOC shall replace the UFOC previously submitted to the
				Administrator;
3) Sales Agent
				Disclosure Form for each salesperson employed by the applicant, Appendix A,
				Illustration C;
4) Certification
				Page, Appendix A, Illustration G;
5) Auditor's consent letter granting consent
				to use each audited report in the registration, Appendix A, Illustration
				H;
Illinois Administrative Code › Title 14 - COMMERCE › Part 200 - FRANCHISE DISCLOSURE ACT › Subpart F - REGISTRATION REQUIREMENTS › Section 200.604 - Amendment

Current through Register Vol. 48, No. 28, July 12, 2024
a) Within 90 days
				after the occurrence of any material change to the UFOC the following materials
				must be submitted to the Administrator to amend the disclosure statement:
1) Two complete copies of the UFOC pages
				containing the changes. One copy of the changed pages must have all changes
				clearly marked;
2) An Application
				page, Appendix A, Illustration A;
3) A Certification page, Appendix A,
				Illustration G;
4) A nonrefundable
				filing fee:
A) $25.00 for an immaterial
				amendment;
B) $100.00 for a
				material amendment.
Illinois Administrative Code › Title 14 - COMMERCE › Part 200 - FRANCHISE DISCLOSURE ACT › Subpart F - REGISTRATION REQUIREMENTS › Section 200.605 - Final Circular Submission

Current through Register Vol. 48, No. 28, July 12, 2024
A registrant may be required to submit one extra, complete
				  unbound copy of the Disclosure Statement, including all revisions and
				  exhibits.
Illinois Administrative Code › Title 14 - COMMERCE › Part 200 - FRANCHISE DISCLOSURE ACT › Subpart F - REGISTRATION REQUIREMENTS › Section 200.606 - Multiple Filings

Current through Register Vol. 48, No. 28, July 12, 2024
The Administrator will register multiple franchises in one
				  filing provided:
a) The franchises
				will be offered concurrently; and
b) The franchises are of a similar type;
				and
c) The contractual obligations
				are similar; and
d) The information
				can be presented in a nonconfusing manner.
Illinois Administrative Code › Title 14 - COMMERCE › Part 200 - FRANCHISE DISCLOSURE ACT › Subpart F - REGISTRATION REQUIREMENTS › Section 200.607 - Public Examination and Photocopying of Disclosure Statements

Current through Register Vol. 48, No. 28, July 12, 2024
Any disclosure document registered under the Act may be
				  examined at the office of the Administrator or ordered by mail for $50.00
				  payable to the State of Illinois from the Illinois Attorney General, Franchise
				  Division, 500 South Second Street, Springfield, Illinois
				  62706.
Illinois Administrative Code › Title 14 - COMMERCE › Part 200 - FRANCHISE DISCLOSURE ACT › Subpart F - REGISTRATION REQUIREMENTS › Section 200.608 - Jurisdiction and Venue

Current through Register Vol. 48, No. 28, July 12, 2024
As described in Section 4 of the Act, a franchise agreement
				  shall not require a franchisee to litigate any cause of action, with the
				  exception of arbitration proceedings, arising under the franchise agreement or
				  the Act outside of this State, nor shall a franchise agreement provide for a
				  choice of law provision for any state other than Illinois.
Illinois Administrative Code › Title 14 - COMMERCE › Part 200 - FRANCHISE DISCLOSURE ACT › Subpart F - REGISTRATION REQUIREMENTS › Section 200.609 - Waiver

Current through Register Vol. 48, No. 28, July 12, 2024
No franchisor shall attempt to circumvent compliance with the
				  Act by requiring a franchisee to execute any document evidencing waiver of any
				  right granted by the Act as described in Section 41 of the Act. This
				  prohibition against waiver includes, but is not limited to, statements
				  involving unregistered earnings claims, timely disclosure, warranty, material
				  misrepresentations or limitation of liability.
Illinois Administrative Code › Title 14 - COMMERCE › Part 200 - FRANCHISE DISCLOSURE ACT › Subpart F - REGISTRATION REQUIREMENTS › Section 200.610 - Denial of Initial Registration

Current through Register Vol. 48, No. 28, July 12, 2024
a) A franchisor, whose initial registration
				has been denied without a full review of the UFOC by the Administrator because
				incomplete financial statements not in compliance with UFOC Guidelines were
				submitted, shall have 90 days to correct such deficiencies. The Administrator
				shall have 21 days to review the corrected financial data submitted and the
				previously submitted circular.
b)
				If the Administrator finds material deficiencies upon a complete review of the
				initial registration materials, or a review subsequent to the franchisor's
				submission of the required financial data, pursuant to subsection (a), the
				franchisor shall be notified that the franchisor has 90 days within which to
				correct such deficiencies. The Administrator shall have 21 days to review the
				curative information.
c) If the
				franchisor cures the deficiencies noticed by the Administrator within the times
				specified in this Part, the Administrator shall rescind the order of denial and
				register the franchise. A franchisor that fails to comply with statutory
				requirements and UFOC Guidelines during the above described 90 day periods must
				reapply by submitting a new registration fee and documents pursuant to the Act
				and Section
				200.600.
Illinois Administrative Code › Title 14 - COMMERCE › Part 200 - FRANCHISE DISCLOSURE ACT › Subpart G - AREA FRANCHISE AND SUBFRANCHISE REGISTRATION REQUIREMENTS - RESPONSIBILITIES FOR FILING › Section 200.701 - Number of Applications

Current through Register Vol. 48, No. 28, July 12, 2024
An application to register the offer of a franchise between a
				  subfranchisor and a subfranchisee shall be made by a separate application. If
				  there is more than one subfranchisor (e.g., two subfranchisors offering the
				  franchise in the same state), the franchise to be offered by or through each
				  subfranchisor shall be filed for registration by a separate
				  application.
Illinois Administrative Code › Title 14 - COMMERCE › Part 200 - FRANCHISE DISCLOSURE ACT › Subpart G - AREA FRANCHISE AND SUBFRANCHISE REGISTRATION REQUIREMENTS - RESPONSIBILITIES FOR FILING › Section 200.702 - Responsibility for Filing the Application

Current through Register Vol. 48, No. 28, July 12, 2024
a) When both the franchisor and the
				subfranchisor have performance obligations to the subfranchisee, whether such
				obligations are set forth in the franchise agreement or other written document
				or arise as a matter of practice, it is the responsibility of both the
				franchisor and the subfranchisor to register the offer of the subfranchise. The
				application for registration regarding the subfranchise shall contain a
				signature page from both the franchisor and the subfranchisor, each certifying
				as to the accuracy of the information he supplied, as well as a properly
				executed consent to service of process from each. Both the franchisor's and
				subfranchisor's financial statements are to be included in the disclosure
				statement.
b) If the franchise
				agreement is solely between a subfranchisor and a subfranchisee and the
				franchisor has no material performance obligations under the franchise or any
				other agreement, then the responsibility for registering the offer of the
				subfranchise is that of the subfranchisor. The franchisor need only verify the
				information in the application that is relevant to the franchisor.
c) If the franchise agreement is solely
				between the franchisor and the subfranchisee, the subfranchisor is not a
				signatory to any such agreement, the franchisor has the primary performance
				obligations to the subfranchisee, then the responsibility for registering the
				offer of the subfranchise is that of the franchisor. The subfranchisor need
				only verify the information in the application relevant to the subfranchisor.
				This subsection will not apply if the area franchise agreement requires the
				subfranchisor to service subfranchisees, despite the lack of direct privity
				between the subfranchisor and the subfranchisee.
Illinois Administrative Code › Title 14 - COMMERCE › Part 200 - FRANCHISE DISCLOSURE ACT › Subpart I - REGISTRATION OF FRANCHISE BROKERS › Section 200.900 - Documents to File

Current through Register Vol. 48, No. 28, July 12, 2024
Each franchise broker shall file with the Administrator the
				  documents listed below in duplicate and pay an annual $100 registration
				  fee.
a) Franchise Broker application
				page, Appendix B, Illustration A;
b) Certification page, Appendix A,
				Illustration G;
c) Salesperson
				Disclosure Form for each person who will be offering or selling franchises,
				Appendix A, Illustration C;
d)
				Corporate, Partnership or Individual Acknowledgment, Appendix A, Illustrations
				E and F;
e) Uniform Consent to
				Service of Process naming the Illinois Attorney General as agent to receive
				service, Appendix A, Illustration D;
f) Broker Authorization Form, Appendix B,
				Illustration B. This form must be filed with the Administrator for each
				franchisor the broker purports to represent, before making such representations
				to any prospective franchisee. The franchisor must amend its UFOC to disclose
				each broker relationship before the respective broker(s) represents the
				Franchisor, except under the "isolated transaction" exemption;
g) A broker who is authorized to accept cash,
				checks or other payments from prospective franchisees on behalf of a franchisor
				shall comply with the provisions of this subsection (g) requiring an unaudited
				balance sheet and income statement externally prepared by an independent CPA in
				accordance with GAAP current within 120 days certifying the net worth of the
				franchise broker to be not less than $50,000.
1) In lieu of an unaudited balance sheet and
				income statement, the broker may post a surety bond in the amount of $50,000
				(Appendix B, Illustration C); or
2)
				In lieu of the franchise broker's unaudited balance sheet the franchise broker
				may submit an audited balance sheet and income statement of a person,
				corporation or partnership having a net worth of $50,000, a Guaranty of
				Performance from such other entity (Appendix B, Illustration D), a Corporate
				Resolution (Appendix D, Illustration B), a Secretary's Certificate (Appendix D,
				Illustration C), a Consent to Service of Process from the guarantor (Appendix
				A, Illustration D), and an Acknowledgment from the guarantor (Appendix A,
				Illustration E or F); and
Illinois Administrative Code › Title 14 - COMMERCE › Part 200 - FRANCHISE DISCLOSURE ACT › Subpart J - REGISTRATION OF SALESPERSONS › Appendix A - Franchise Registration Forms › ILLUSTRATION A - Uniform Franchise Registration Notification Page

Current through Register Vol. 48, No. 28, July 12, 2024
File No.
(Insert prior number, if any)
Fee: ________________
(Enclosed at time of initial filing)
Date of Filing: ________________
Notification of Filing For (Check only one
					 category):
Registration of an offer or sale of franchises
Annual Report
Amendment
1. Name
				  of Franchisor
Name under which the Franchisor is doing or intends to do
					 business.
2. Franchisor's
				  principal business address.
Name and address of Franchisor's agent in the State of
					 Illinois authorized to receive process.
Illinois Attorney General, 500 South Second Street,
					 Springfield, Illinois 62706
3. Name, address and telephone number of
				  subfranchisors, if any, for this State.
4. Name, address and telephone number of
				  person to whom communications regarding this application should be
				  directed.
Illinois Administrative Code › Title 14 - COMMERCE › Part 200 - FRANCHISE DISCLOSURE ACT › Subpart J - REGISTRATION OF SALESPERSONS › Appendix A - Franchise Registration Forms › ILLUSTRATION B - Supplemental Information

Current through Register Vol. 48, No. 28, July 12, 2024
1. List the
				  following:
A. The states in which this
				  proposed registration is effective.
B. The states in which this proposed
				  registration is or will be shortly on file.
C. The states, if any, which have refused, by
				  order or otherwise, to register this franchise.
D. The states, if any, which have revoked or
				  suspended the right to offer this franchise.
E. The states, if any, in which the proposed
				  registration of this franchise has been withdrawn.
Illinois Administrative Code › Title 14 - COMMERCE › Part 200 - FRANCHISE DISCLOSURE ACT › Subpart J - REGISTRATION OF SALESPERSONS › Appendix A - Franchise Registration Forms › ILLUSTRATION C - Sales Agent Disclosure Form

Current through Register Vol. 48, No. 28, July 12, 2024
1. List the persons
				  who will offer or sell franchises in this State. For each person state:
A. Name;
B. Business address and telephone
				  number;
C. Home address and
				  telephone number;
D. Present
				  employer;
E. Present
				  title;
F. Social security
				  number;
G. Birthdate; and
H. Employment during the past 5 years. For
				  each such employment state the name of the employer, position held and
				  beginning and ending dates.
Illinois Administrative Code › Title 14 - COMMERCE › Part 200 - FRANCHISE DISCLOSURE ACT › Subpart J - REGISTRATION OF SALESPERSONS › Appendix A - Franchise Registration Forms › ILLUSTRATION E - Corporate Acknowledgment

Current through Register Vol. 48, No. 28, July 12, 2024
STATE OF
)
SS
)
COUNTY OF
)
On ____________this day of
					 ____________________, ____, before me ______________ the undersigned officer,
					 personally appeared _______ and ______, known personally to me to be the
					 ______________ President ____ and _____________ Secretary, respectively, of the
					 above named corporation, and that they, as such officers, being authorized so
					 to do, executed the foregoing instrument for the purpose therein contained, by
					 signing the name of the corporation by themselves as such officer.
IN WITNESS WHEREOF I have hereunto set my hand and official
					 seal.
________________________________
Notary Public
(Notarial Seal)
My commission Expires:
					 ________
Illinois Administrative Code › Title 14 - COMMERCE › Part 200 - FRANCHISE DISCLOSURE ACT › Subpart J - REGISTRATION OF SALESPERSONS › Appendix A - Franchise Registration Forms › ILLUSTRATION F - Individual or Partnership Acknowledgment

Current through Register Vol. 48, No. 28, July 12, 2024
STATE OF
)
SS
)
COUNTY OF
)
On this _______________ day of __________________,
					 ________, before me ______________ the undersigned officer, personally appeared
					 ______________ to me personally known and known to be the same person(s) whose
					 name(s) is (are) signed to the foregoing instrument, and acknowledged the
					 execution thereof for the uses and purposes therein set forth.
IN WITNESS WHEREOF I have hereunto set my hand and official
					 seal.
_______________________________
Notary Public
(Notarial Seal)
My commission expires: _______________
Illinois Administrative Code › Title 14 - COMMERCE › Part 200 - FRANCHISE DISCLOSURE ACT › Subpart J - REGISTRATION OF SALESPERSONS › Appendix A - Franchise Registration Forms › ILLUSTRATION G - Certification Page

Current through Register Vol. 48, No. 28, July 12, 2024
I certify under penalty of law that I have read this
					 notification and the exhibits attached hereto and incorporated herein by
					 reference, and know the contents thereof and that the statements therein are
					 true and correct.
Executed at _______________, Illinois
					 _________,__________________________
__________________________________
__________________________________
(Signature(s) of Franchisor, Subfranchisor or
					 Broker)
(SEAL)
By ______________________________
Title ______________________________
STATE OF
)
SS
)
COUNTY OF
)
Personally appeared before me this __________ day of,
					 ______________________ the above-named ______________(and) _________________to
					 me known to be the person(s) who executed the foregoing notification (as
					 ______________________and ____________________respectively, of the above-named
					 applicant) and (each) being _______________________ first duly sworn, stated
					 upon oath that said notification, and all exhibits submitted herewith, are true
					 and correct.
________________________________
(Notarial Seal)
________________________________
Notary
Illinois Administrative Code › Title 14 - COMMERCE › Part 200 - FRANCHISE DISCLOSURE ACT › Subpart J - REGISTRATION OF SALESPERSONS › Appendix A - Franchise Registration Forms › ILLUSTRATION H - Consent of Accountant

Current through Register Vol. 48, No. 28, July 12, 2024
A "Manually Signed Consent of Accountant" should contain
					 the following language:
John Doe and Company, Inc. hereby consents to
					 the use in the Franchise Disclosure Document filed by John Smith, Inc. of our
					 report dated April 4, 1978, relating to the financial statements of John Smith,
					 Inc. for the period ending December 31, 1977.
This letter must be
					 manually signed by the accountant.
Illinois Administrative Code › Title 14 - COMMERCE › Part 200 - FRANCHISE DISCLOSURE ACT › Subpart J - REGISTRATION OF SALESPERSONS › Appendix A - Franchise Registration Forms › ILLUSTRATION L - Requirements for Preparation of a Uniform Franchise Offering Circular

Current through Register Vol. 48, No. 28, July 12, 2024
THE UNIFORM FRANCHISE OFFERING CIRCULAR
					 GUIDELINES
GENERAL INSTRUCTIONS
90. Introduction: The Uniform Franchise
				  Offering Circular (UFOC) Guidelines consist of the Requirements, Instructions
				  and Sample Answers (Appendix A, Illustration L). The UFOC Guidelines were
				  prepared and adopted by the North American Securities Administrators
				  Association ("NASAA") and its predecessor, the Midwest Securities Commission
				  Association June 10, 1993. The members of NASAA cannot create statutes since
				  that is the constitutional province of state legislators, but NASAA intends for
				  the UFOC Guidelines to facilitate compliance with disclosure requirements under
				  state franchise investment laws. Where possible, NASAA has developed uniform
				  disclosure requirements, but differences in state laws bearing on the franchise
				  relationship may necessitate changes. In addition, state administrators will
				  continue to review the application for deficient disclosure and additional
				  disclosure necessitated by special problems or risks in the proposed
				  offering.
100. Follow these General
				  Instructions and the Requirement and Instruction for each Item in franchise
				  registration applications and disclosure in the Uniform Franchise Offering
				  Circular.
110. Original Registration
				  Application - Documents to File:
(a) Uniform
				  Franchise Registration Application Page (also known as "Facing Page") (Appendix
				  A, Illustration A);
(b)
				  Supplemental Information Pages(s) (Appendix A, Illustration B);
(c) Certification Page (Appendix A,
				  Illustration G);
(d) Uniform Consent
				  to Service of Process (Appendix A, Illustration D);
(e) Sales Agent Disclosure Form (Appendix A,
				  Illustration C);
(f) If the
				  applicant is a corporation or partnership, an authorizing resolution if the
				  application is verified by a person other than applicant's officer or general
				  partner (Appendix A, Illustrations E, F, M and N);
(g) Uniform Franchise Offering Circular
				  (Appendix A, Illustration L);
(h)
				  Application Fee (Section 40 of the Act);
(i) Auditor's consent (or a photocopy of the
				  consent) to the use of the latest audited financial statements in the offering
				  circular (Appendix A, Illustration H).
Illinois Administrative Code › Title 14 - COMMERCE › Part 200 - FRANCHISE DISCLOSURE ACT › Subpart J - REGISTRATION OF SALESPERSONS › Appendix A - Franchise Registration Forms › ILLUSTRATION M - Joint Venture Agreement & Acknowledgment

Current through Register Vol. 48, No. 28, July 12, 2024
STATE OF
)
)
SS
COUNTY OF
)
On this _____ day of , ______________, before me the
					 undersigned officer, personally appeared ________ and ___________ to me known
					 personally to be the authorized representative(s) of _________, a joint venture
					 undertaking, whose name(s) is signed to the foregoing instrument, and that he
					 (they), as such representative(s), being authorized to do so, executed the
					 foregoing instrument for the purposes therein contained, by signing the name of
					 the joint venture by himself (themselves) as such authorized
					 representative(s).
IN WITNESS WHEREOF
I have hereunto
					 set my hand and official seal.
________________________________
Notary Public
(Notarial Seal)
My Commission
					 expires:__________________
Illinois Administrative Code › Title 14 - COMMERCE › Part 200 - FRANCHISE DISCLOSURE ACT › Subpart J - REGISTRATION OF SALESPERSONS › Appendix A - Franchise Registration Forms › ILLUSTRATION N - Limited Partnership Acknowledgement

Current through Register Vol. 48, No. 28, July 12, 2024
STATE OF
)
)
SS
COUNTY OF
)
On this _____ day of , ____________________ , before me the
					 undersigned officer, personally appeared ________ and ________ to me known
					 personally to be the authorized representative(s) of ___________, a limited
					 partnership, whose name(s) is signed to the foregoing instrument, and that he
					 (they), as such representative(s), being authorized to do so, executed the
					 foregoing instrument for the purposes therein contained, by signing the name of
					 the limited partnership by himself (themselves) as such authorized
					 representative(s).
IN WITNESS WHEREOF
I have hereunto
					 set my hand and official seal.
________________________________
Notary Public
(Notarial Seal)
My Commission
					 expires:__________________
Illinois Administrative Code › Title 14 - COMMERCE › Part 200 - FRANCHISE DISCLOSURE ACT › Subpart J - REGISTRATION OF SALESPERSONS › Appendix B - Franchise roker Registration Forms › ILLUSTRATION A - Franchise Broker Registration Application Page

Current through Register Vol. 48, No. 28, July 12, 2024
File
					 No.
(Insert file number of previous filings
					 of
applicant, if any)
FEE: _____________
(To be enclosed by applicant at time
application is initially filed)
Date of Application: _____________
1. Name of Franchise Broker.
Name under which the Franchise Broker is doing or intends
					 to do business.
2.
				  Franchise Broker's principal business address.
Name and address of Franchise Broker's agent in the State
					 of Illinois authorized to receive process.
Illinois Attorney General, 500 South Second
					 Street, Springfield, Illinois 62706
3. Name, address and telephone number of
				  person to whom communications regarding this application should be
				  directed.
Illinois Administrative Code › Title 14 - COMMERCE › Part 200 - FRANCHISE DISCLOSURE ACT › Subpart J - REGISTRATION OF SALESPERSONS › Appendix B - Franchise roker Registration Forms › ILLUSTRATION B - Broker Authorization

Current through Register Vol. 48, No. 28, July 12, 2024
To Whom It May Concern:
______________________ ("Broker") is hereby authorized to
					 act as Franchise Broker and sell franchises on behalf of our company.
(Check one of the Following)
[] A. Broker shall not accept payment from any Illinois
					 franchisee in its own name, but shall only accept checks payable to our company
					 and shall forward said checks and applications to us within ________ days after
					 receipt of same.
[] B. Broker shall accept payment from franchisees in its
					 own name.
[] C. Broker is not authorized to accept cash, checks or
					 other payments from prospective franchisees on behalf of our company.
(Franchisor)
_________________
By: ______________
Title: _____________