Illinois Administrative Code › Title 14 - COMMERCE › Part 200 - FRANCHISE DISCLOSURE ACT › Subpart J - REGISTRATION OF SALESPERSONS › Appendix E - Surety Bond

Current through Register Vol. 48, No. 28, July 12, 2024
We, ____(name of franchisor)____, a corporation with
				  principal offices at ___(address of franchisor)____ as principal, and ____(name
				  of surety company)____, a surety company with principal offices located at
				  ____(address of Surety)____ incorporated under the laws of the State of
				  _______________ and authorized to conduct business in the State of Illinois, as
				  Surety, are indebted to the Administrator, Illinois Attorney General, 500 South
				  Second Street, Springfield, Illinois 62706, Obligee in the sum of
				  ______________ to be paid to the Obligee or its legal representatives,
				  successors, or assigns, for which payment we bind ourselves and our legal
				  representatives and successors, jointly and severally.
WHEREAS, the above-named principal has made application to
				  the Administrator for registration of the offer of its franchises under the
				  Illinois Franchise Disclosure Act and is required pursuant to said law to
				  provide the Administrator with a Surety Bond.
WHEREAS, the Principal proposes to offer in Illinois
				  ____________ franchise(s) within one year from the effective date of the
				  proposed registration under the Illinois Franchise Disclosure Act; and
WHEREAS, the Obligee intends to assign this bond to the
				  respective purchaser(s) of the aforementioned franchise(s) upon sale of the
				  aforementioned franchise(s) to said purchaser(s).
The conditions of this bond are that if the Principal, its
				  agent or employees shall:
1. Comply with the Illinois Franchise Disclosure
				  Act and all rules and orders promulgated thereunder; and
2. Pay all damages suffered by any person by
				  reason of the violation of the Illinois Franchise Disclosure Act or any rules
				  or orders promulgated thereunder or any acts, rules or orders amendatory
				  thereof and/or supplementary thereto, or hereafter enacted, or by reason of any
				  misrepresentation, deceit, fraud or omission to state a material fact necessary
				  in order to make any statement made in the light of the circumstances under
				  which such statement was made, not misleading, including, but not limited to,
				  the failure to disclose, as required by Illinois Franchise Disclosure Act and
				  the rules and regulations promulgated thereunder, the true financial condition
				  of franchisor; and
3. Fully completes its obligations under the
				  Franchise Agreement and all related Agreements to provide real estate,
				  improvements, equipment, inventory, training and other items included in the
				  franchise offering, then this obligation shall be void; otherwise this
				  obligation will remain in full force and effect. This bond and obligation
				  hereunder shall be deemed to run continuously and shall remain in full force
				  and effect for four full year after the date of execution of this document.
In the event that any action or proceeding is initiated with
				  respect to this bond, the parties agree that the venue thereof shall be the
				  state or province in which the offer or sale of the franchise occurred.
IN WITNESS WHEREOF, Principal and Surety have executed this
				  instrument at this________ day of _______________ , _______ .
____________________________
Principal
____________________________
Surety