Section 200.900  Documents to File

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

h)         $100 registration fee.

(Source:  Amended at 23 Ill. Reg. 11561, effective September 7, 1999)