USA – ILLINOIS Law and Practice Contributed by: Carmen D. Caruso, Bill Whitner and Gage Meyers Carmen D. Caruso Law Firm Contents 1. An Introduction to Franchising P.119 1.1 Franchise Market Overview p.119 1.2 Franchise Regulation p.119 1.3 Definition of a Franchise Agreement p.119 2. Franchise Disclosure P.120 2.1 Mandatory Disclosure p.120 2.2 Consequences of a Failure to Disclose p.120 2.3 Franchise Disclosure Exemptions p.121 2.4 Franchise Disclosure Language/Translation Requirements p.121 3. Franchise Registration P.122 3.1 Mandatory Registration p.122 3.2 Franchise Registration Process p.122 3.3 Consequences of a Failure to Register p.122 4. Other Requirements P.123 4.1 Past-Profitability Requirements p.123 5. Duration, Renewal and Termination P.123 5.1 Duration of a Franchise Agreement p.123 5.2 Franchise Renewal p.123 5.3 Termination of the Franchise Agreement p.123 6. Restrictions on Competition in Franchise Agreements P.124 6.1 Treatment of Competition Restrictions in Franchise Agreements p.124 6.2 Exclusive Territories and Competing Businesses p.124 6.3 Requiring Franchisees to Purchase Specific Goods and Services p.125 6.4 Channel Reservation p.125 6.5 Vertical Agreement Block Exemptions p.125
Iowa
Illinois Springfield
Indiana
Missouri
Kentucky
7. Joint Employer Risk and Vicarious Liability P.126 7.1 Joint Employer Laws p.126 7.2 Vicarious Liability p.126 8. Choice of Governing Law P.127 8.1 Possibility of a Franchisor Stipulating Non-Local Law p.127 8.2 Local Law Requirements p.127 8.3 Mandatory Content p.128 8.4 Prohibited Provisions in Local Law p.128 9. Dispute Resolution P.128 9.1 Enforcement of Foreign Judgments p.128 10. Payment and Taxes P.129 10.1 Restrictions or Limits on Franchisee Fees and Royalties p.129 10.2 Withholding Tax p.129 10.3 Foreign Currency Controls p.130 11. Execution Formalities P.130 11.1 Authentication, Notarisation, Witnessing, Etc p.130 11.2 Electronic Signatures p.130 11.3 Stamp Duties p.130
117 FRANCHISING 2026
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