Illinois Franchise Reform Bill Passes General Assembly

TO: Legislative Action Group
Legal Legislative Committee
Corporate Counsel Committee

FR: Troy Flanagan
Director, Government Relations

DT: June 2, 2009

RE: Illinois Franchise Reform Bill Passes General Assembly

Following efforts by the Illinois State Bar Association, the Illinois Retail Merchants Association and the IFA, legislation making needed changes to state franchise regulation was passed by the Illinois General Assembly on May 29. S.B. 1285, by Sen. Linda Holmes and Rep. Michael Zalewski, must be presented to Gov. Pat Quinn within 30 days, and he then has 60 days to take action.

S.B. 1285 accomplishes the following: conforms the renewal period to be 120-days after the franchisor's fiscal year-end; conforms the material change amendment time period to the FTC requirements of quarterly and within 30-days after the close of the quarter; requires disclosure documents to be prepared in accordance with the amended FTC Franchise Rule and the North American Securities Administrators Association Guidelines instead of the Uniform Franchise Offering Circular Guidelines; reduces the complications for large franchisors who have done business with Illinois (experienced franchisors); and gives the Illinois Attorney General a new remedy entitled "Assurance of Voluntary Compliance" for violations of the Illinois Franchise Disclosure Act.

IFA will continue to work with in-state allies to advocate approval of this measure by Gov. Quinn. Please contact me if you have any questions.

M. Troy Flanagan
Director, Government Relations
International Franchise Association
1501 K Street, NW, Suite 350
Washington, DC 20005
Direct 202.662.0792
Fax 202.628.0812
Cell 202.285.4371
tflanagan@franchise.org
www.franchise.org