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Illinois Compiled Statutes

815 ILCS 705/19 (2026)

Termination of a Franchise

✓ current as of May 2026
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(815 ILCS 705/19) (from Ch. 121 1/2, par. 1719)
    Sec. 19. Termination of a Franchise. (a) It shall be a violation of this Act for a franchisor to terminate a franchise of a franchised business located in this State prior to the expiration of its term except for "good cause" as provided in subsection (b) or (c) of this Section.
    (b) "Good cause" shall include, but not be limited to, the failure of the franchisee to comply with any lawful provisions of the franchise or other agreement and to cure such default after being given notice thereof and a reasonable opportunity to cure such default, which in no event need be more than 30 days.
    (c) "Good cause" shall include, but without the requirement of notice and an opportunity to cure, situations in which the franchisee:
    (1) makes an assignment for the benefit of creditors or a similar disposition of the assets of the franchise business;
    (2) voluntarily abandons the franchise business;
    (3) is convicted of a felony or other crime which substantially impairs the good will associated with the franchisor's trademark, service mark, trade name or commercial symbol; or
    (4) repeatedly fails to comply with the lawful provisions of the franchise or other agreement.
(Source: P.A. 85-551.)

    
Notes of Decisions
Cited in 15 cases (1 in the last 5 years), 1993–2022 · leading case: McDonald's Corp. v. CB Mgmt. Co., Inc., 13 F. Supp. 2d 705 (N.D. Ill. 1998).
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McDonald's Corp. v. CB Mgmt. Co., Inc., 13 F. Supp. 2d 705 (N.D. Ill. 1998). · cites it 3× “except for ‘good cause’_” 815 ILCS 705/19 (emphasis added). Since the St.”
Russell W. Zeidler v. A & W Restaurants, Inc., 301 F.3d 572 (7th Cir. 2002). “See 815 ILCS 705/19(c)(2). The Zeidlers attempt to forestall summary judgment on the basis of their abandonment by arguing that A & W forced them to close.”
7-Eleven, Inc. v. Dar, 757 N.E.2d 515 (Ill. App. Ct. 2001). “The petitioner argues that the arbitrator exceeded his authority when, in determining that a wrongful termination had occurred, he ignored the plain language of the parties’ agreement which makes it clear that the agreement expired pursuant to its own terms and, instead, found…”
Servpro Indus., Inc. v. Schmidt, 905 F. Supp. 475 (N.D. Ill. 1995). · cites it 3× “815 ILCS 705/19(a). Good cause includes the failure of the franchisee to comply with the provisions of the franchise agreement and to cure the default after being given notice of the default and a reasonable opportunity, but not necessarily more than 30 days, to cure the default.”
Cox v. Doctor's Assocs., Inc., 613 N.E.2d 1306 (Ill. App. Ct. 1993). “Section 19 of the Franchise Disclosure Act of 1987 (815 ILCS 705/19(b) (West 1992)) defines “good cause” as including “the failure of the franchisee to comply with any lawful provisions of the franchise or other agreement and to cure such default after being given notice thereof…”
Indus. Representatives, Inc. v. Cp Clare Corp., 74 F.3d 128 (7th Cir. 1996). “By demanding five years’ worth after the fact, IRI has behaved opportunistically. According to IRI, Illinois does not honor the parties’ allocation of risks.”
To-Am Equip. Co., Inc. v. Mitsubishi Caterpillar Forklift Am., Inc., 953 F. Supp. 987 (N.D. Ill. 1997). “Termination of a franchisee must be supported by “good cause”, 815 ILCS 705/19(a), and contracts at odds with the statutory scheme are ineffectual, 815 ILCS 705/41.”
To-Am Equip. Co. v. Mitsubishi Caterpillar Forklift Am., 913 F. Supp. 1148 (N.D. Ill. 1995). “3(a) “and/or” 815 ILCS 705/19(a); and (4) unreasonably and materially discriminated against the plaintiff and in favor of other franchisees by terminating the franchise, in violation of Ill.”
7-Eleven, Inc. v. Dar, 748 N.E.2d 642 (Ill. App. Ct. 2001). “The petitioner argues that the arbitrator exceeded his authority when, in determining that a wrongful termination had occurred, he ignored the plain language of the parties’ agreement which makes it clear that the agreement expired pursuant to its own terms and, instead, found…”
All Ems Inc. v. 7-Eleven Inc, 181 F. App'x 551 (7th Cir. 2006). “” 815 ILCS 705/19(b). All EMS undisputedly let its net worth deficit go uncured for more than 30 days.”
7-Eleven, Inc. v. Shakti Chicago, Inc. (N.D. Ill. 2019). · cites it 2× “815 ILCS 705/19(b). A franchise agreement may be terminated “without the requirement of notice and an opportunity to cure,” however, when the franchisee “repeatedly fails to comply with the lawful provisions of the franchise or other agreement.”
Rhine Enter. LLC v. Refresco Beverage US, Inc. (S.D. Ill. 2022). · cites it 2× “Plaintiff claims Defendant terminated their agreement without “good cause” and without providing a notice of nonrenewal in violation of Sections 19 and 20 of the Illinois Franchise Disclosure Act (“IFDA”), 815 ILCS 705/19, 20. Defendant further began selling its Vess products to…”
Show all 15 citing cases →
— 815 ILCS 705/19(a) — 4 cases
To-Am Equip. Co., Inc. v. Mitsubishi Caterpillar Forklift Am., Inc., 953 F. Supp. 987 (N.D. Ill. 1997). “Termination of a franchisee must be supported by “good cause”, 815 ILCS 705/19(a), and contracts at odds with the statutory scheme are ineffectual, 815 ILCS 705/41.”
To-Am Equip. Co. v. Mitsubishi Caterpillar Forklift Am., 913 F. Supp. 1148 (N.D. Ill. 1995). “3(a) “and/or” 815 ILCS 705/19(a); and (4) unreasonably and materially discriminated against the plaintiff and in favor of other franchisees by terminating the franchise, in violation of Ill.”
Servpro Indus., Inc. v. Schmidt, 905 F. Supp. 475 (N.D. Ill. 1995). “815 ILCS 705/19(a). Good cause includes the failure of the franchisee to comply with the provisions of the franchise agreement and to cure the default after being given notice of the default and a reasonable opportunity, but not necessarily more than 30 days, to cure the default.”
Smith v. Molly Maid, Inc., 415 F. Supp. 2d 905 (N.D. Ill. 2006).
— 815 ILCS 705/19(b) — 5 cases
McDonald's Corp. v. CB Mgmt. Co., Inc., 13 F. Supp. 2d 705 (N.D. Ill. 1998). “except for ‘good cause’_” 815 ILCS 705/19 (emphasis added). Since the St.”
Cox v. Doctor's Assocs., Inc., 613 N.E.2d 1306 (Ill. App. Ct. 1993). “Section 19 of the Franchise Disclosure Act of 1987 (815 ILCS 705/19(b) (West 1992)) defines “good cause” as including “the failure of the franchisee to comply with any lawful provisions of the franchise or other agreement and to cure such default after being given notice thereof…”
Servpro Indus., Inc. v. Schmidt, 905 F. Supp. 475 (N.D. Ill. 1995). “815 ILCS 705/19(a). Good cause includes the failure of the franchisee to comply with the provisions of the franchise agreement and to cure the default after being given notice of the default and a reasonable opportunity, but not necessarily more than 30 days, to cure the default.”
All Ems Inc. v. 7-Eleven Inc, 181 F. App'x 551 (7th Cir. 2006). “” 815 ILCS 705/19(b). All EMS undisputedly let its net worth deficit go uncured for more than 30 days.”
7-Eleven, Inc. v. Shakti Chicago, Inc. (N.D. Ill. 2019). “815 ILCS 705/19(b). A franchise agreement may be terminated “without the requirement of notice and an opportunity to cure,” however, when the franchisee “repeatedly fails to comply with the lawful provisions of the franchise or other agreement.”
— 815 ILCS 705/19(c)(2) — 2 cases
Russell W. Zeidler v. A & W Restaurants, Inc., 301 F.3d 572 (7th Cir. 2002). “See 815 ILCS 705/19(c)(2). The Zeidlers attempt to forestall summary judgment on the basis of their abandonment by arguing that A & W forced them to close.”
Zeidler, Russell v. A & W Restaurants (7th Cir. 2002).
— 815 ILCS 705/19(c)(4) — 3 cases
Servpro Indus., Inc. v. Schmidt, 905 F. Supp. 475 (N.D. Ill. 1995). “815 ILCS 705/19(a). Good cause includes the failure of the franchisee to comply with the provisions of the franchise agreement and to cure the default after being given notice of the default and a reasonable opportunity, but not necessarily more than 30 days, to cure the default.”
H Guys, LLC v. The Halal Guys Franchise, Inc. (N.D. Ill. 2019).
7-Eleven, Inc. v. Shakti Chicago, Inc. (N.D. Ill. 2019). “815 ILCS 705/19(b). A franchise agreement may be terminated “without the requirement of notice and an opportunity to cure,” however, when the franchisee “repeatedly fails to comply with the lawful provisions of the franchise or other agreement.”
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