This document may be used to register an offer and sale of franchises or to register a renewal statement or annual report. The document also contains a certification statement.
Alabama Illinois Franchise Registration Application
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State:
Multi-State
Control #:
US-4-03-STP
Format:
Word;
Rich Text
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How to fill out Illinois Franchise Registration Application?
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FAQ
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 single sale franchise exemption is available to franchisors who wish to avoid registration requirements by limiting the number of franchises offered for sale. In Illinois, the number of franchise sales is limited to 2 sales in any 12-month period.
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 ...
The fractional franchise exemption is available to franchisors when a franchise is only a small percentage of the potential franchisee's business. A ?fractional franchise? is meant to allow an existing business to add new, but similar products or services.
The State of Alabama is not a franchise registration state. This means that to offer or sell franchises in Alabama you do not need to register your Franchise Disclosure Document (?FDD?) with the state.
The Rule requires franchisors to provide all potential franchisees with a disclosure document containing 23 specific items of information about the offered franchise, its officers, and other franchisees.
Franchising is expensive to set up in the first place. Plus, not many people will be willing to invest money in your business if it's not financially sound. Nobody wants to invest in trends. The best businesses stay the course for a long time because they sell goods or services that most people need.
When registration is required, franchisors must pay a $500 fee and submit the FDD with a franchise registration application form, sales agent disclosure forms, an auditor's consent, a service of process form, and certain other required documents to the Illinois Franchise Bureau (500 S.