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Illinois is a Franchise Registration State. The initial FDD filing fee is $500 and the annual FDD renewal fee is $100.
Alaska is not a Franchise Registration State. Although Alaska has enacted business opportunity laws, franchisors that are in compliance with the Federal Franchise Laws are exempt from Alaska's business opportunity disclosure requirements.
Under Illinois Law, 815 ILCS 705/3 of the Illinois Franchise Disclosure Act defines a franchise as including any written or oral agreement that expressly or implicitly provides for the marketing, sale or distribution of products or services: (a) under a marketing plan or system that is prescribed or suggested in ...
Franchising is expensive to set up in the first place. Plus, not many people will be willing to invest money in your business if it's not financially sound. Nobody wants to invest in trends. The best businesses stay the course for a long time because they sell goods or services that most people need.
The Rule requires franchisors to provide all potential franchisees with a disclosure document containing 23 specific items of information about the offered franchise, its officers, and other franchisees.
The single sale franchise exemption is available to franchisors who wish to avoid registration requirements by limiting the number of franchises offered for sale. In Illinois, the number of franchise sales is limited to 2 sales in any 12-month period.
The fractional franchise exemption is available to franchisors when a franchise is only a small percentage of the potential franchisee's business. A ?fractional franchise? is meant to allow an existing business to add new, but similar products or services.
Illinois is a franchise registration state. Before offering or selling a franchise in Illinois, you must first file your franchise disclosure document (FDD) with the Illinois Attorney General's Franchise Bureau.