On Illinois Franchise Laws
Illinois is a franchise registration state, which means that any franchisor offering or selling a franchise in Illinois must first register its Franchise Disclosure Document (FDD) with the Illinois Attorney General’s Office.
This is mandated by the Illinois Franchise Disclosure Act (IFDA), a law designed to protect prospective franchisees by ensuring they receive detailed and transparent information about the franchise system before making a significant investment. The initial registration fee for franchisors is $500, and it must be renewed annually for a fee of $100.
The IFDA provides key protections for franchisees, regulating the relationship between the franchisor and franchisee.
For instance, it places restrictions on a franchisor’s ability to terminate or not renew a franchise agreement, requiring “good cause” and proper notice.
Additionally, the Act prohibits a franchisor from unreasonably and materially discriminating between Illinois franchisees with regard to fees, royalties, and other charges. Franchisees who are harmed by a violation of the IFDA have the right to sue for damages, and the Act allows for the recovery of attorney’s fees and costs.
Given the complexities of both federal and state franchise laws, it’s highly recommended that both franchisors and prospective Illinois franchisees consult with an experienced Franchise Attorney in Illinois.
That’s because a Franchise Lawyer can help franchisors navigate the registration process and ensure legal compliance, while helping prospective franchisees understand their rights, negotiate favorable terms, and assess the risks and financial obligations outlined in the FDD.
Here is a list of franchise lawyers you can hire in Illinois
Doris Carter / Huck Bouma
1755 S. Naperville Road, Suite 200
Wheaton, Illinois
Michael J. Boxerman
20 N Clark St Suite 3300
Chicago, Illinois
Doris Adkins Carter
1755 S. Naperville Rd. Suite 200
Wheaton, IL
Danya A. Shakfeh / Motiva Business Law
1229 W. Washington Blvd.
Chicago, Illinois
Alissa Verson / Huck Bouma
1755 S. Naperville Road, Suite 200
Wheaton, Illinois
