State of Illinois
90th General Assembly
Legislation

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[ Introduced ][ Enrolled ][ House Amendment 001 ]

90_HB3463eng

      815 ILCS 705/5            from Ch. 121 1/2, par. 1705
      815 ILCS 705/10           from Ch. 121 1/2, par. 1710
      815 ILCS 705/11           from Ch. 121 1/2, par. 1711
      815 ILCS 705/16           from Ch. 121 1/2, par. 1716
      815 ILCS 705/22           from Ch. 121 1/2, par. 1722
      815 ILCS 705/25           from Ch. 121 1/2, par. 1725
      815 ILCS 705/26           from Ch. 121 1/2, par. 1726
      815 ILCS 705/13 rep.
      815 ILCS 705/15 rep.
      815 ILCS 705/30 rep.
          Amends the Franchise Disclosure  Act  of  1987.  Provides
      that  the  disclosure statement required under this Act shall
      be prepared in accordance with the Uniform Franchise Offering
      Circular Guidelines as  adopted  and  amended  by  the  North
      American  Securities Administrators Association, Incorporated
      rather than as provided by  rule  by  the  Attorney  General.
      Removes  provisions  regarding  the  ability  of the Attorney
      General to require the escrow  or  impoundment  of  franchise
      fees and other funds paid by the franchisee to the franchisor
      if  the  franchisor  has  failed to demonstrate that adequate
      financial arrangements have been made to fulfill  obligations
      to  the  franchisee.   Removes  provisions  providing that an
      advertisement offering to sell or purchase a franchise  shall
      be  reviewed  and  approved  by the Attorney General prior to
      being  published.  Makes other changes removing a  number  of
      provisions.  Effective immediately.
                                                     LRB9009391SMdv
HB3463 Engrossed                               LRB9009391SMdv
 1        AN ACT concerning franchise disclosure laws.
 2        Be  it  enacted  by  the People of the State of Illinois,
 3    represented in the General Assembly:
 4        Section 5.  The  Franchise  Disclosure  Act  of  1987  is
 5    amended  by  changing  Sections  3,  5, 10, 11, 16, and 22 as
 6    follows:
 7        (815 ILCS 705/3) (from Ch. 121 1/2, par. 1703)
 8        Sec. 3.  Definitions.  As used in this Act:
 9        (1)  "Franchise" means a contract  or  agreement,  either
10    expressed or implied, whether oral or written, between two or
11    more persons by which:
12             (a)  a  franchisee is granted the right to engage in
13        the business of offering, selling, or distributing  goods
14        or  services, under a marketing plan or system prescribed
15        or suggested in substantial part by a franchisor; and
16             (b)  the  operation  of  the  franchisee's  business
17        pursuant  to  such  plan  or  system   is   substantially
18        associated with the franchisor's trademark, service mark,
19        trade  name,  logotype,  advertising, or other commercial
20        symbol designating the franchisor or its affiliate; and
21             (c)  the person granted the right to engage in  such
22        business  is  required  to pay, directly or indirectly, a
23        franchise fee of $500 or more;
24        Provided that this Act shall not  apply  to  any  of  the
25    following   persons,  entities  or  relationships  which  may
26    involve  or  acquire  a  franchise  or  any  interest  in   a
27    franchise:
28                  (i)  any  franchised business which is operated
29             by the franchisee on the premises of the  franchisor
30             or subfranchisor as long as such franchised business
31             is  incidental  to  the  business  conducted  by the
HB3463 Engrossed            -2-                LRB9009391SMdv
 1             franchisor  or  subfranchisor  at   such   premises,
 2             including,  without  limitation,  leased departments
 3             and concessions; or
 4                  (ii)  a fractional  franchise.   A  "fractional
 5             franchise"  means  any  relationship  in  which  the
 6             person  described therein as a franchisee, or any of
 7             the current directors or executive officers thereof,
 8             has been in the type of business represented by  the
 9             franchise relationship for more than 2 years and the
10             parties  anticipated, or should have anticipated, at
11             the time the agreement  establishing  the  franchise
12             relationship  was  reached,  that  the sales arising
13             from the relationship would represent no  more  than
14             20%  of the sales in dollar volume of the franchisee
15             for  a  period  of  at  least  one  year  after  the
16             franchisee begins  selling  the  goods  or  services
17             involved in the franchise; or
18                  (iii)  a  franchise  agreement for the use of a
19             trademark,  service  mark,  trade  name,   logotype,
20             advertising,  or other commercial symbol designating
21             a person who offers on a general basis, for a fee or
22             otherwise, a bona fide service for  the  evaluation,
23             testing,  or certification of goods, commodities, or
24             services.
25        (2)  "Franchisee" means a person to whom a  franchise  is
26    granted  and  includes,  unless stated otherwise in this Act:
27    (a) a subfranchisor with regard to its  relationship  with  a
28    franchisor  and  (b)  a  subfranchisee  with  regard  to  its
29    relationship with a subfranchisor.
30        (3)  "Franchisor"  means  a person who grants a franchise
31    and includes a subfranchisor with regard to its  relationship
32    with a franchisee, unless stated otherwise in this Act.
33        (4)  "Subfranchise"   means  any  contract  or  agreement
34    between  a  franchisor  and  a  subfranchisor   whereby   the
HB3463 Engrossed            -3-                LRB9009391SMdv
 1    subfranchisor  is  granted the right, in consideration of the
 2    payment of a franchise fee in  whole  or  in  part  for  such
 3    right, to service franchises or to sell or negotiate the sale
 4    of  franchises.   Where used in this Act, unless specifically
 5    stated otherwise, "franchise" includes "subfranchise."
 6        (5)  "Subfranchisor" means a person to whom the right  to
 7    sell subfranchises is granted.
 8        (6)  "Order"  means  a  consent, authorization, approval,
 9    prohibition, or requirement applicable  to  a  specific  case
10    issued by the Attorney General Administrator.
11        (7)  "Person"  means  an  individual,  a  corporation,  a
12    partnership,  a  joint venture, an association, a joint stock
13    company, a trust, or an unincorporated organization.
14        (8)  "Rule" means any published regulation or standard of
15    general application issued by the Administrator.
16        (9)  "Sale"  or  "sell"  includes   every   contract   or
17    agreement  of sale of, contract to sell, or disposition of, a
18    franchise or interest in a franchise for value.
19        (10)  "State" means the State of Illinois.
20        (11)  "Fraud" and "deceit" are not limited to common  law
21    fraud or deceit.
22        (12)  "Offer"  or  "offer to sell" includes every attempt
23    to offer to dispose of, or solicitation of an offer to buy, a
24    franchise, any interest  in  a  franchise  or  an  option  to
25    acquire a franchise for value.
26        (13)  "Publish"  means  publicly to issue or circulate by
27    newspaper,  mail,  radio,  or  television,  or  otherwise  to
28    disseminate to the public.
29        (14)  "Franchise fee" means any  fee  or  charge  that  a
30    franchisee  is required to pay directly or indirectly for the
31    right to enter into a business or sell, resell, or distribute
32    goods, services or franchises under an agreement,  including,
33    but  not  limited to, any such payment for goods or services,
34    provided that the  Administrator  may  by  rule  define  what
HB3463 Engrossed            -4-                LRB9009391SMdv
 1    constitutes  an  indirect franchise fee, and provided further
 2    that the following shall not be considered the payment  of  a
 3    franchise fee: (a) the payment of a reasonable service charge
 4    to  the issuer of a credit card by an establishment accepting
 5    or honoring such credit card; (b) amounts paid to  a  trading
 6    stamp   company   by  a  person  issuing  trading  stamps  in
 7    connection with the retail sale of merchandise  or  services;
 8    (c)  the  purchase  or  agreement to purchase goods for which
 9    there is an established  market  at  a  bona  fide  wholesale
10    price;  (d) the payment for fixtures necessary to operate the
11    business; (e) the payment of rent which reflects payment  for
12    the  economic  value  of the property; or (f) the purchase or
13    agreement to purchase goods for which there is an established
14    market at a bona fide retail price subject  to  a  bona  fide
15    commission  or  compensation  plan.  The Administrator may by
16    rule define what shall constitute an established market.
17        (15)  "Disclosure statement" means the document  provided
18    for  in  Section  16  of  this Act and all amendments to such
19    document.
20        (16)  "Write"  or  "written"   shall   include   printed,
21    lithographed or any other means of graphic communication.
22        (17)  (Blank).   "Advertisement"  means  any  prospectus,
23    circular,  notice,  advertisement,  letter  of communication,
24    written or by radio or television, which offers any franchise
25    for sale or confirms the sale of any franchise.
26        (18)  "Marketing plan or system" means a plan  or  system
27    relating  to  some  aspect  of  the  conduct  of a party to a
28    contract in conducting business, including but not limited to
29    (a) specification of price, or  special  pricing  systems  or
30    discount  plans,  (b)  use  of  particular  sales  or display
31    equipment or merchandising devices, (c) use of specific sales
32    techniques, (d) use of advertising or  promotional  materials
33    or  cooperation  in  advertising  efforts;  provided  that an
34    agreement is not a marketing plan or system solely because  a
HB3463 Engrossed            -5-                LRB9009391SMdv
 1    manufacturer  or  distributor  of goods reserves the right to
 2    occasionally require sale at a special reduced price which is
 3    advertised on the container or packaging  material  in  which
 4    the  product  is  regularly  sold,  if  the  reduced price is
 5    absorbed by the manufacturer or distributor.
 6        (19)  "Administrator"   means   the   Illinois   Attorney
 7    General.
 8        (20)  (a) An offer to sell a franchise is  made  in  this
 9        State when the offer either originates from this State or
10        is  directed by the offeror to this State and received at
11        the place to which it is directed. An offer  to  sell  is
12        accepted in this State when acceptance is communicated to
13        the offeror in this State; and acceptance is communicated
14        to  the offeror in this State when the offeree directs it
15        to the offeror in this  State  reasonably  believing  the
16        offeror  to  be  in  this State and it is received at the
17        place to which it is directed.
18             (b)  An offer to sell a franchise  is  not  made  in
19        this  State  merely  because the franchisor circulates or
20        there is circulated in this State an advertisement in (i)
21        a bona fide newspaper or other  publication  of  general,
22        regular  and paid circulation which has had more than 2/3
23        of its circulation outside this State during the past  12
24        months, or (ii) a radio or television program originating
25        outside this State which is received in this State.
26        (21)  "Franchise  broker" means any person engaged in the
27    business of representing a franchisor in offering for sale or
28    selling a franchise and is not a franchisor  or  an  officer,
29    director  or  employee  of  a franchisor with respect to such
30    franchise. A franchisee  shall  not  be  a  franchise  broker
31    merely  because  it receives a payment from the franchisor in
32    consideration of the referral of a prospective franchisee  to
33    the   franchisor,   if  the  franchisee  does  not  otherwise
34    participate in the sale of a  franchise  to  the  prospective
HB3463 Engrossed            -6-                LRB9009391SMdv
 1    franchisee.  A  franchisee shall not be deemed to participate
 2    in a sale merely because he responds to  an  inquiry  from  a
 3    prospective franchisee.
 4        (22)  "Salesperson"  means  any  person  employed  by  or
 5    representing a franchise broker in effecting or attempting to
 6    effect the offer or sale of a franchise.
 7    (Source: P.A. 87-1143.)
 8        (815 ILCS 705/5) (from Ch. 121 1/2, par. 1705)
 9        Sec.  5.  Prohibited  practices. (1) Sale of unregistered
10    franchise unlawful. It is unlawful for any person to offer or
11    sell any franchise required to be registered under  this  Act
12    unless the franchise has been registered under this Act or is
13    exempt under this Act.
14        (2)  Failure  to deliver a disclosure statement unlawful.
15    It is unlawful for any person to offer or sell any  franchise
16    which  is  required  to  be registered under this Act without
17    first providing to the prospective franchisee at least 14  10
18    business  days  prior  to  the  execution  by the prospective
19    franchisee of any binding franchise or other agreement, or at
20    least 14 10 business days prior to the receipt by such person
21    of any consideration, whichever occurs first,  a  copy  of  a
22    disclosure statement meeting the requirements of this Act and
23    registered  by the Administrator, together with a copy of all
24    proposed agreements relating to the sale  of  the  franchise.
25    For  the  purposes  of  this  Act,  delivery  of a disclosure
26    statement  to  a  general  partner  of  a  partnership  shall
27    constitute delivery to the partnership and its  partners  and
28    delivery  of a disclosure statement to a principal officer of
29    a corporation shall constitute delivery  to  the  corporation
30    and its shareholders.
31        (3)  Sale  of  franchise by unregistered franchise broker
32    unlawful. It is unlawful for any  franchise  required  to  be
33    registered  under  this Act to be offered for sale or sold in
HB3463 Engrossed            -7-                LRB9009391SMdv
 1    this State by a franchise broker subject to this Act  who  is
 2    not  first  registered  under  this  Act  unless  exempt from
 3    registration.
 4        (4)  Filing of untrue report unlawful. It is unlawful for
 5    any person to make or cause to be made any  untrue  statement
 6    of  a  material  fact  in  any application, notice, or report
 7    filed with the Administrator, or to  omit  to  state  in  any
 8    application,  notice, or report any material fact, or to fail
 9    to notify the Administrator of any material  change  in  such
10    application,  notice,  or report, as required by this Act and
11    the rules and regulations promulgated thereunder.
12    (Source: P.A. 85-551.)
13        (815 ILCS 705/10) (from Ch. 121 1/2, par. 1710)
14        Sec. 10.  Registration and Annual Report.  No  franchisor
15    may  sell  or  offer to sell a franchise in this State if (1)
16    the franchisee is domiciled in this State or (2) the offer of
17    the franchise is made or  accepted  in  this  State  and  the
18    franchise  business  is  or  will  be  located in this State,
19    unless the franchisor has registered the franchise  with  the
20    Administrator by filing such form of notification application
21    and  disclosure statement as required under Section 16 as the
22    Administrator may by rule or order require. The Administrator
23    may require the filing with the Administrator of  such  other
24    information  or  documents as are necessary or appropriate in
25    the public interest or  for  the  protection  of  prospective
26    franchisees   and  may,  but  need  not,  require  that  such
27    additional  information  or   documents   be   furnished   to
28    prospective franchisees as part of the disclosure statement.
29        The registration of a franchise shall become effective on
30    the  21st  20th  business day after the date of the filing of
31    the required materials,  unless  prior  thereto  one  of  the
32    following  events  has taken place: (1) the Administrator has
33    denied registration under subdivision (a)(3)  of  Section  22
HB3463 Engrossed            -8-                LRB9009391SMdv
 1    entered  an  order  suspending,  terminating,  prohibiting or
 2    denying  the  registration  of  the  franchise  or  franchise
 3    broker; or (2) the Administrator has notified the  franchisor
 4    or  its  representative  that the materials filed do not meet
 5    the requirements of this Act, and the  reasons  therefor;  or
 6    (3)  the Administrator in his discretion upon written request
 7    of the franchisor, has granted acceleration so as to  provide
 8    for an effective date prior to the 20th business day.
 9        Annually,  but  not  later  than one business day 30 days
10    before  the  anniversary  date  of  the   registration,   the
11    franchisor  shall  file a report in a form prescribed by rule
12    of the Administrator. The report shall contain such documents
13    and information as the Administrator may  by  rule  or  order
14    require   including,   without   limitation,  the  disclosure
15    statement updated as  of  a  date  within  120  days  of  the
16    anniversary date of the registration.  The Administrator may,
17    in   his   discretion,  review  such  report  and  disclosure
18    statement  and  notify   the   franchisor   that   additional
19    information or other modification of the disclosure statement
20    be  included  or  deleted  from  the  report  and  disclosure
21    statement, or issue an order under Section 23 of this Act, as
22    may  be  necessary  or appropriate in the public interest, or
23    for the protection of  prospective  franchisees.  The  notice
24    issued  by  the  Administrator  may,  at  the Administrator's
25    discretion, suspend the right of the franchisor to  offer  to
26    sell franchises until the specified deficiencies are cured.
27        From  the  date  the  annual  report  is  filed until the
28    anniversary date of  the  registration,  the  franchisor  may
29    continue   to   use   the  previously  registered  disclosure
30    statement or the disclosure statement that is filed with  the
31    annual  report  provided  that,  if  the disclosure statement
32    filed with the annual report contains any material change  in
33    any  matter  required  to  be disclosed, the franchisor shall
34    deliver the  disclosure  statement  in  accordance  with  the
HB3463 Engrossed            -9-                LRB9009391SMdv
 1    requirements  of  subsection (2) of Section 5.  The sale of a
 2    franchise  after  the  filing  of  the   updated   disclosure
 3    statement  and  before  the  franchisor's receipt of a notice
 4    from the Administrator requiring  additional  information  or
 5    other  modification of the updated disclosure statement shall
 6    be deemed the sale of a registered franchise,  provided  that
 7    the   updated  disclosure  statement  contains  all  required
 8    exhibits and the franchisor complies with the requirements of
 9    subsection (2) of Section  5  with  respect  to  the  updated
10    disclosure   statement.   The  fact  that  the  franchise  is
11    considered to be registered is not a finding that the updated
12    disclosure statement complies with the standard of disclosure
13    required by this Act.
14    (Source: P.A. 87-1143.)
15        (815 ILCS 705/11) (from Ch. 121 1/2, par. 1711)
16        Sec.  11.  Amendments.   Within  90  days  of  Upon   the
17    occurrence of any material change in any facts required to be
18    disclosed,  a  franchisor whose franchise is registered under
19    this Act shall  amend  its  disclosure  statement  and  shall
20    deliver  the  amended disclosure statement in accordance with
21    the requirements of subsection (2) of Section 5 and   Section
22    16  of  this  Act  to  any  prospective franchisee, including
23    prospective franchisees to whom a  disclosure  statement  was
24    previously  delivered  if  the  material change relates to or
25    affects the franchisor  or  the  franchise  offered  to  such
26    prospective franchisees. The Administrator may by rule define
27    what   shall   constitute  a  material  change.  The  amended
28    disclosure statement shall be filed  with  the  Administrator
29    who  may require additional information or other modification
30    of the amended disclosure statement under Section 16 of  this
31    Act  or  issue  an  order  under  Section 23 of this Act. The
32    notice   issued   by   the   Administrator   may,   at    the
33    Administrator's   discretion,   suspend   the  right  of  the
HB3463 Engrossed            -10-               LRB9009391SMdv
 1    franchisor to offer and sell franchises until  the  specified
 2    deficiencies are cured. An amendment shall not be required if
 3    the  terms  of the franchise agreement merely reflect changes
 4    from the franchisor's registered franchise made  pursuant  to
 5    negotiations  between  the franchisee and the franchisor. The
 6    sale of a franchise after the filing of an amended disclosure
 7    statement and before the franchisor's  receipt  of  a  notice
 8    from  the  Administrator  requiring additional information or
 9    other modification of the amended disclosure statement  shall
10    be  deemed  the sale of a registered franchise, provided that
11    the  amended  disclosure  statement  contains  all   required
12    exhibits and the franchisor complies with the requirements of
13    subsection  (2)  of  Section  5  with  respect to the amended
14    disclosure statement.
15        The  fact  that  the  franchise  is  considered   to   be
16    registered  is  not  a  finding  that  the amended disclosure
17    statement complies with the standard of  disclosure  required
18    by this Act.
19    (Source: P.A. 87-1143.)
20        (815 ILCS 705/16) (from Ch. 121 1/2, par. 1716)
21        Sec. 16.  Form and contents of disclosure statements. The
22    disclosure   statement  required  under  this  Act  shall  be
23    prepared in accordance with the  Uniform  Franchise  Offering
24    Circular  Guidelines  as  adopted  and  amended  by the North
25    American Securities Administrators Association, Incorporated.
26    The Administrator  shall  by  rule  prescribe  the  form  and
27    content  of  disclosure statements.  The Administrator may by
28    rule or order require (a)  that  specified  portions  of  the
29    disclosure statement be emphasized by italics, bold face type
30    or other means, and (b) that earnings or sales projections or
31    estimations  be  qualified by appropriate legend.  No portion
32    of the disclosure statement shall be underscored,  italicized
33    or  printed  in larger or bolder type than the balance of the
HB3463 Engrossed            -11-               LRB9009391SMdv
 1    statement unless the Administrator requires or permits it.
 2        The Administrator, giving due regard to the  desirability
 3    of  avoiding  the  burden  of  preparing duplicate disclosure
 4    statements and similar documents, may by rule or  order  deem
 5    to  be  in  full  or  partial  compliance  with  this Act any
 6    disclosure statement which complies with the requirements  of
 7    any Federal law or administrative rule or with the law of any
 8    other  state,  or is approved by an association of regulatory
 9    agencies, which law, rule or approval requires  substantially
10    the  same  disclosures  to  prospective  franchisees  as  are
11    required under this Act.
12        All  statements in the disclosure statement shall be free
13    from any false or misleading statement of  a  material  fact,
14    shall  not  omit  to  state  any material fact required to be
15    stated or necessary to make the  statements  not  misleading,
16    and  shall  be accurate and complete as of the effective date
17    thereof.
18        When the disclosure statement is for a franchise offering
19    by a subfranchisor, the disclosure  statement  shall  include
20    the  information  required  by  this  Act with respect to the
21    subfranchisor instead of  the  franchisor;  however,  if  the
22    franchisor  from whom the subfranchisor acquired the right to
23    grant franchises is required to provide the  franchisee  with
24    goods,    training    programs,    advertising,    promotion,
25    supervision, assistance in site selections or other services,
26    the   Administrator   may   in  his  discretion  require  the
27    disclosure statement for such franchise offering  to  include
28    part  or  all  of  the  information required by this Act with
29    respect to both the subfranchisor  and  the  franchisor  from
30    whom   the   subfranchisor   acquired   the  right  to  grant
31    franchises.
32    (Source: P.A. 85-551.)
33        (815 ILCS 705/22) (from Ch. 121 1/2, par. 1722)
HB3463 Engrossed            -12-               LRB9009391SMdv
 1        Sec. 22.  Enforcement.
 2        (a)  The Administrator may suspend,  terminate,  prohibit
 3    or  deny  the  sale  of  any franchise or registration of any
 4    franchise, or franchise broker or salesperson if  it  appears
 5    to  him that: (1) there has been a failure to comply with any
 6    of the provisions of this Act or the rules or orders  of  the
 7    Administrator  pertaining thereto; or (2) that the disclosure
 8    statement or any amendment  thereto  includes  any  false  or
 9    misleading statement of a material fact or omits to state any
10    material  fact  required to be stated therein or necessary to
11    make the statements therein not misleading is  incomplete  or
12    inaccurate   in   any  material  respect;  or  (3)  that  the
13    disclosure statement filed in  conjunction  with  an  initial
14    registration  under  Section  10  is materially deficient.  A
15    disclosure statement is "materially deficient" if it fails to
16    comply  with  the  requirements  of  the  Uniform   Franchise
17    Offering Circular Guidelines referred to in Section 16 or any
18    amendment  thereto includes any false or misleading statement
19    of a material fact  or  omits  to  state  any  material  fact
20    required  to  be  stated  therein  or  necessary  to make the
21    statements therein not misleading; or (4) that  the  sale  of
22    the franchise would constitute a misrepresentation, deceit or
23    fraud upon prospective franchisees; or (5) that any person in
24    this  State  is  engaging  in  or  about  to engage in false,
25    fraudulent or deceptive practices or any device,  scheme,  or
26    artifice  to  defraud in connection with the offer or sale of
27    the franchise; or (6)  that  any  person  identified  in  the
28    disclosure  statement  or  any person engaged in the offer or
29    sale of the franchise in this State has been convicted of  an
30    offense,  is  subject  to  an order or civil judgment or is a
31    defendant in a proceeding required to  be  described  in  the
32    disclosure  statement  and  the  involvement  of  such person
33    creates an unreasonable risk to prospective  franchisees;  or
34    (7)  (blank)  that  anything  prohibited by this Act has been
HB3463 Engrossed            -13-               LRB9009391SMdv
 1    used in connection with the offer or sale of  the  franchise;
 2    or (8) (blank) that the financial condition of the franchisor
 3    affects  or  would  affect  the  ability of the franchisor to
 4    fulfill obligations under the franchise  or  other  agreement
 5    and  the  franchisor  is unable or unwilling to comply with a
 6    rule or order of the Administrator issued under Section 15 of
 7    this Act; or (9) that the franchisor's enterprise  or  method
 8    of  business  includes  or would include activities which are
 9    illegal where performed;  or  (10)  (blank)  that  there  are
10    conditions  affecting  the soundness of the franchise so that
11    the sale thereof would be fraudulent,  inequitable  or  would
12    work or tend to work a fraud upon prospective franchisees; or
13    (11)  (blank)  that  an  applicant  has  failed to diligently
14    process its registration application with the Administrator.
15        In  no  case  shall  the  Administrator,  or  any  person
16    designated by him, in the administration of this  Act,  incur
17    any  official  or  personal  liability by issuing an order or
18    other proceeding or by suspending,  denying,  prohibiting  or
19    terminating   the  registration  of  a  franchise  broker  or
20    salesperson,  or  by  denying,  suspending,  terminating   or
21    prohibiting  the  registration  of franchises, or prohibiting
22    the sale of franchises, or by suspending or  prohibiting  any
23    person from acting as a franchise broker or salesperson.
24        The   Administrator   may  exercise  any  of  the  powers
25    specified in Section 31 of this Act.
26        (b) The Administrator, with such  assistance  as  he  may
27    from  time  to  time  request of the state's attorneys in the
28    several counties, may institute proceedings  in  the  circuit
29    court  to  prevent  and restrain violations of this Act or of
30    any rule or order prescribed or issued under  this  Act.   In
31    such  a  proceeding,  the  court  shall  determine  whether a
32    violation has been committed, and shall enter  such  judgment
33    or  decree as it considers necessary to remove the effects of
34    any violation and to prevent such violation  from  continuing
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 1    or  from  being  renewed  in  the  future.  The court, in its
 2    discretion,  may  exercise  all  powers  necessary  for  this
 3    purpose,  including,  but   not   limited   to,   injunction,
 4    revocation,   forfeiture   or   suspension  of  the  charter,
 5    franchise, certificate of  authority  or  privileges  of  any
 6    corporation,   association,   limited  partnership  or  other
 7    business organization operating under the laws of this State,
 8    dissolution  of  domestic   corporations   or   associations,
 9    suspension   or   termination   of   the   right  of  foreign
10    corporations or associations to do business in this State, or
11    restitution or payment of damages by a franchisor to  persons
12    injured   by   violations  of  this  Act,  including  without
13    limitation an award of reasonable attorneys fees and costs.
14    (Source: P.A. 85-551.)
15        (815 ILCS 705/30 rep.)
16        Section 990.  The Franchise Disclosure  Act  of  1987  is
17    amending by  repealing Section 30.
18        Section 999.  Effective date.  This Act takes effect upon
19    becoming law.

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