Illinois Franchise Registration

Illinois Franchise Registration

Illinois boasts a strong business climate and makes an excellent choice to set up shop for a franchise. Both the Hyatt Hotel Corporation and Groupon are headquartered in the State of Illinois along with the Fortune 500 conglomerate, Boeing. Chicago, being the 3rd largest city in the U.S., is a hub for many vital economic necessities and is home to O’Hare International Airport. Accessibility to both domestic and international markets is vital to economic sucess, which Illinois has. According to the US Chamber Foundation, “Illinois is poised to be a world leader in accelerator research development”, making it fertile soil for economic growth and opportunity.

Illinois is a franchise registration state which requires a full review of the FDD, Audited Financial Statements and approval from the Illinois Attorney General.  The state is intentional about protection for both franchisors and franchisees, structuring the franchise relationship within the Franchise Disclosure Act. The Act is overseen by The Franchise Bureau in the Office of the Illinois Attorney General. Whether the franchisee resides in Illinois or the franchise itself will be sold within the state, Illinois requires registration of the franchise’s FDD (Franchise Disclosure Document). This document must comply with the FTC’s (Federal Trade Commission) guidelines.

Paper filings can be sent to:

Illinois Attorney General’s Office

Franchise Bureau

500 South Second Street

Springfield, Illinois 6270

The initial registration fee is $500 and the annual renewal fee is $100.

For all franchisors headquartered in Illinois or for franchisees who will be running their business within the state, they must be appropriately filed as a new business entity. Illinois has made this easier through its First Stop Business Center, a single statewide resource for permitting or regulatory information. Note that most businesses must be registered and/or licensed by the Illinois Department of Revenue (IDOR).

When you are approved for Illinois Franchise Registration, you will be able to see the name of your franchise entity by searching the Illinois franchise registration list: https://apps.ilsos.gov/brokersearch/

For more information on other state registration guidelines, visit https://www.fmsfranchise.com/about-franchising/guidelines/stateregulations/