Illinois
An Illinois franchise attorney helps you register your Franchise Disclosure Document (FDD) with the Illinois Attorney General before you offer or sell a franchise in the state. Illinois is a registration state. It also has strict rules about how you end or renew a franchise relationship. The Franchise and Business Law Group helps franchisors in Chicago and across the country get registered in Illinois and build agreements that hold up there.
Named a U.S. News Best Law Firm for Franchise Law since 2014.
The Illinois Franchise Disclosure Act of 1987 requires you to register your FDD with the Attorney General's Franchise Bureau before you offer or sell. The law reaches more deals than you might think. It applies when an offer is made or accepted in Illinois, when the buyer lives in Illinois, or when the franchise will be located in Illinois.
Your Illinois registration runs out 120 days after your fiscal year ends. Your renewal has to be filed before then. If something material changes in your system during the year, you must file an amendment. Once you are registered, the normal 14-day waiting period still applies before a buyer signs or pays.
Not sure which other states need a filing? Start with our guide to which states require franchise registration.
Illinois protects franchisees once they are open. In general, you cannot terminate an Illinois franchise without good cause. Good cause usually means the franchisee got notice of a problem and had about 30 days to fix it. Choosing not to renew can also require six months' notice in some cases. Illinois also bars franchisors from stopping franchisees from joining an association, and from treating Illinois franchisees unfairly differently on fees or royalties.
These rules shape how your franchise agreement should be written. We draft your Illinois addendum so your terms are clear and enforceable, and our franchise dispute team helps you follow the right steps if a franchisee relationship goes bad.
This happens a lot with newer franchisors. If your financial statements show low capital, Illinois can make registration depend on extra protection for buyers. That might be holding initial fees in escrow, waiting to collect fees until the franchisee opens, a surety bond, or a guaranty. We help you pick the option that fits your cash flow and get it approved.
We have helped launch more than 100 franchise brands over about 20 years, including Crumbl Cookies, Westside Pizza, and Sno Shack. We know what startup franchisors need, and we know what examiners look for.
You work directly with our partners. Expect email and phone contact two to three times a week while we build or update your documents, plus a free 10 to 15 minute monthly check-in for franchisor clients.
Your FDD is not a one-time document. A dedicated renewal team sends you a questionnaire each year, finds what changed, and updates your FDD for new laws so every state renewal goes in on time.
Yes, unless you qualify for an exemption. Illinois requires registration before you offer or sell a franchise when the buyer lives in Illinois, the franchise will be in Illinois, or the offer is made or accepted there.
It expires 120 days after the end of your fiscal year. File your renewal before that date so you do not have to pause sales in Illinois.
No. Illinois generally requires good cause, which usually means the franchisee had notice and a chance to fix the problem. Talk to us before you send a termination notice.
Yes. We help Chicago brands franchise for the first time and help out-of-state franchisors add Illinois to their registration plan. Registration filings are document work done remotely, so location is not a barrier.
Headquartered in Salt Lake City · Serving Illinois Franchisors
