My Queue

There are no Videos in your queue.

Click on the Add to next to any video to save to your queue.

There are no Articles in your queue.

Click on the Add to next to any article to save to your queue.

There are no Podcasts in your queue.

Click on the Add to next to any podcast episode to save to your queue.

You're not following any authors.

Click the Follow button on any author page to keep up with the latest content from your favorite authors.

Lifting The Burden

Illinois franchise law lightens up.
- Magazine Contributor
1 min read

This story appears in the December 1998 issue of Entrepreneur. Subscribe »

Franchisors and franchisees both breathed a sigh of relief recently when Illinois legislators passed Public Act 90-842, a modification of the state's Franchise Disclosure Act. The new legislation eliminates much of the state's review power of franchise disclosure documents.

The Illinois Franchise Disclosure Act of 1987 allowed state administrators to hold up the review process if certain phrases in disclosure documents weren't italicized or if administrators requested additional paperwork. The modification simplifies this process.

"[The previous version of the act] discouraged franchisors from doing business in Illinois," says Sen. Chris Lauzen (R-Geneva), sponsor of the bill in the Illinois Senate. "[The new version] ensures all the protections that should be in the law but makes it more fair, uniform, simple and less expensive."

Will other states follow suit? It's unlikely, says attorney Dennis Wieczorek, a partner with Chicago franchise law firm Rudnick & Wolfe. "[The modification] doesn't really teach anything other than if states go overboard in regulating, franchisors and franchisees [may] seek the same kinds of changes they did in Illinois." Since franchisors and franchisees can now operate under a lighter burden in Illinois, this could be a lesson well-learned for all states.

Contact Source

Rudnick & Wolfe, (312) 368-4087, fax: (312) 236-7516