(815 ILCS 705/5) (from Ch. 121 1/2, par. 1705)
Sec. 5.
Prohibited practices.
(1) Sale of unregistered franchise
unlawful. It is unlawful for any person to offer or sell any franchise
required to be registered under this Act unless the franchise has been
registered under this Act or is exempt under this Act.
(2) Failure to deliver a disclosure statement unlawful. It is unlawful
for any person to offer or sell any franchise which is required to be
registered under this Act without first providing to the prospective
franchisee at least 14 days prior to the execution by the
prospective franchisee of any binding franchise or other agreement, or at
least 14 days prior to the receipt by such person of any
consideration, whichever occurs first, a copy of a disclosure statement
meeting the requirements of this Act and registered by the Administrator,
together with a copy of all proposed agreements relating to the sale of the
franchise. For the purposes of this Act, delivery of a disclosure statement
to a general partner of a partnership shall constitute delivery to the
partnership and its partners and delivery of a disclosure statement to a
principal officer of a corporation shall constitute delivery to the
corporation and its shareholders.
(3) Sale of franchise by unregistered franchise broker
unlawful. It is
unlawful for any franchise required to be registered under this Act to be
offered for sale or sold in this State by a franchise broker subject to
this Act who is not first registered under this Act unless exempt from
registration.
(4) Filing of untrue report unlawful. It is unlawful for any person to
make or cause to be made any untrue statement of a material fact in any
application, notice, or report filed with the Administrator, or to omit to
state in any application, notice, or report any material fact, or to fail to
notify the Administrator of any material change in such application,
notice, or report, as required by this Act.
(Source: P.A. 90-642, eff. 7-24-98; 91-916, eff. 7-7-00.)
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