[ Home ] [ ILCS ] [ Search ] [ Bottom ]
[ Other General Assemblies ]
Public Act 91-0916
SB1330 Enrolled LRB9109949WHcs
AN ACT to amend the Franchise Disclosure Act of 1987 by
changing Section 5.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The Franchise Disclosure Act of 1987 is
amended by changing Section 5 as follows:
(815 ILCS 705/5) (from Ch. 121 1/2, par. 1705)
Sec. 5. Prohibited practices.
(1) Sale of unregistered franchise unlawful. It is
unlawful for any person to offer or sell any franchise
required to be registered under this Act unless the franchise
has been registered under this Act or is exempt under this
Act.
(2) Failure to deliver a disclosure statement unlawful.
It is unlawful for any person to offer or sell any franchise
which is required to be registered under this Act without
first providing to the prospective franchisee at least 14
days prior to the execution by the prospective franchisee of
any binding franchise or other agreement, or at least 14
business days prior to the receipt by such person of any
consideration, whichever occurs first, a copy of a disclosure
statement meeting the requirements of this Act and registered
by the Administrator, together with a copy of all proposed
agreements relating to the sale of the franchise. For the
purposes of this Act, delivery of a disclosure statement to a
general partner of a partnership shall constitute delivery to
the partnership and its partners and delivery of a disclosure
statement to a principal officer of a corporation shall
constitute delivery to the corporation and its shareholders.
(3) Sale of franchise by unregistered franchise broker
unlawful. It is unlawful for any franchise required to be
registered under this Act to be offered for sale or sold in
this State by a franchise broker subject to this Act who is
not first registered under this Act unless exempt from
registration.
(4) Filing of untrue report unlawful. It is unlawful for
any person to make or cause to be made any untrue statement
of a material fact in any application, notice, or report
filed with the Administrator, or to omit to state in any
application, notice, or report any material fact, or to fail
to notify the Administrator of any material change in such
application, notice, or report, as required by this Act.
(Source: P.A. 90-642, eff. 7-24-98.)
Section 99. Effective date. This Act takes effect upon
becoming law.
[ Top ]