Illinois Compiled Statutes
815 ILCS 705/5 (2026)
Prohibited practices
✓ current as of May 2026
Find cases:
SyfertCases citing this section
IL-ILGAilga.gov
JustiaChapter on Justia
CornellLII Search
CasesGoogle Scholar
(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.)
Notes of Decisions
Cited in 18
cases (2 in the last 5 years), 1993–2024 · leading case: Jensen v. Quik Int'l, 820 N.E.2d 462 (Ill. 2004).
Jensen v. Quik Int'l, 820 N.E.2d 462 (Ill. 2004). “JUSTICE RARICK delivered the opinion of the court: Plaintiff, Eric Jensen, sought to rescind a franchise agreement with Quik International (Quik) pursuant to section 26 of the Franchise Disclosure Act of 1987 (Act) (815 ILCS 705/5 (West 2002)) on the grounds that Quik was not…”
Vassilkovska v. Woodfield Nissan, Inc., 830 N.E.2d 619 (Ill. App. Ct. 2005). “In Jensen, the plaintiff sought to rescind a franchise agreement with the defendant on the grounds that the franchise agreement violated the Franchise Disclosure Act of 1987 (Franchise Act) (815 ILCS 705/5 (West 2002)), because the franchisor had failed to register with the…”
LRN Holding, Inc. v. Windlake Capital Advisors, LLC, 949 N.E.2d 264 (Ill. App. Ct. 2011). “Here, unlike the Franchise Disclosure Act of 1987 (815 ILCS 705/5 (West 2008)) at issue in Jensen , the Brokers Act contains an express provision that proper registration as a business broker is a condition precedent to a valid business broker agreement (815 ILCS 307/10-60 (West…”
Jensen v. Quik Int'l, 801 N.E.2d 1124 (Ill. App. Ct. 2003). “red the opinion of the court: Plaintiff, Eric Jensen, filed a complaint against defendants, Quik International (Quik), Murray Mead and Jack Reynolds, seeking to rescind his franchise agreement with defendants on the grounds that the Quik failed to comply with provisions…”
Galasso v. KNS Companies, Inc., 845 N.E.2d 857 (Ill. App. Ct. 2006). “In Jensen, the plaintiff sought to rescind a franchise agreement with the defendant on the grounds that the agreement violated the Franchise Disclosure Act of 1987 (Franchise Act) (815 ILCS 705/5 (West 2002)), because the defendant franchisor was not registered with the Attorney…”
Reed v. Doctor's Assocs., Inc., 824 N.E.2d 1198 (Ill. App. Ct. 2005). “In count II, the franchisees alleged that the defendants had violated sections 5, 6, and 26 of the Franchise Disclosure Act of 1987 (815 ILCS 705/5, 6, 26 (West 1996)), but that claim was abandoned in a later version of the complaint.”
Gen. Motors Acceptance Corp. v. Johnson, 822 N.E.2d 30 (Ill. App. Ct. 2004). “In Jensen, the plaintiff sought to rescind a franchise agreement with the defendant on the grounds that the agreement violated the Franchise Disclosure Act of 1987 (815 ILCS 705/5 (West 2002)) because the defendant franchisor was not registered with the Attorney General’s office…”
Sweet Dreams Unlimited, Inc. v. Dial-A-Mattress Int'l, Ltd., 1 F.3d 639 (7th Cir. 1993). “3 This act prohibits offering for sale any franchise that has not been properly registered, 815 ILCS 705/5(1) (1993), and authorizes a franchisee that has purchased an unregistered franchise (which Sweet Dreams claims to be) to sue for rescission.”
Sweet Dreams Unlimited, Inc. v. Dial-A-Mattress Int'l, Ltd., 1 F.3d 639 (7th Cir. 1993). “3 This act prohibits offering for sale any franchise that has not been properly registered, 815 ILCS 705/5(1) (1993), and authorizes a franchisee that has purchased an unregistered franchise (which Sweet Dreams claims to be) to sue for rescission.”
Baum v. Grainier Franchise Co., LLC (N.D. Ill. 2024). “) They allege (1) violation of the Illinois Franchise Disclosure Act, 815 ILCS 705/5; 5 The complaint claims to attach this exemption letter as Exhibit H, but the court is unable to find it on the docket.”
Jensen v. Quik Int'l (Ill. 2004). “JUSTICE RARICK delivered the opinion of the court: Plaintiff, Eric Jensen, sought to rescind a franchise agreement with Quik International (Quik) pursuant to section 26 of the Franchise Disclosure Act of 1987 (Act) (815 ILCS 705/5 (West 2002)) on the grounds that Quik was not…”
Am. Ass'n of Motorcycle Injury Lawyers, Inc. v. HP3 Law, LLC (N.D. Ill. 2022). “,” in that it “has sold an unregistered franchise in which [it] provides use of the asserted marks in violation of 815 ILCS 705/5(1).” Doc. 52 at pp. 33-34.”
— 815 ILCS 705/5(1) — 7 cases
Jensen v. Quik Int'l, 820 N.E.2d 462 (Ill. 2004). “JUSTICE RARICK delivered the opinion of the court: Plaintiff, Eric Jensen, sought to rescind a franchise agreement with Quik International (Quik) pursuant to section 26 of the Franchise Disclosure Act of 1987 (Act) (815 ILCS 705/5 (West 2002)) on the grounds that Quik was not…”
Jensen v. Quik Int'l, 801 N.E.2d 1124 (Ill. App. Ct. 2003). “red the opinion of the court: Plaintiff, Eric Jensen, filed a complaint against defendants, Quik International (Quik), Murray Mead and Jack Reynolds, seeking to rescind his franchise agreement with defendants on the grounds that the Quik failed to comply with provisions…”
Sweet Dreams Unlimited, Inc. v. Dial-A-Mattress Int'l, Ltd., 1 F.3d 639 (7th Cir. 1993). “3 This act prohibits offering for sale any franchise that has not been properly registered, 815 ILCS 705/5(1) (1993), and authorizes a franchisee that has purchased an unregistered franchise (which Sweet Dreams claims to be) to sue for rescission.”
Sweet Dreams Unlimited, Inc. v. Dial-A-Mattress Int'l, Ltd., 1 F.3d 639 (7th Cir. 1993). “3 This act prohibits offering for sale any franchise that has not been properly registered, 815 ILCS 705/5(1) (1993), and authorizes a franchisee that has purchased an unregistered franchise (which Sweet Dreams claims to be) to sue for rescission.”
Am. Ass'n of Motorcycle Injury Lawyers, Inc. v. HP3 Law, LLC (N.D. Ill. 2022). “,” in that it “has sold an unregistered franchise in which [it] provides use of the asserted marks in violation of 815 ILCS 705/5(1).” Doc. 52 at pp. 33-34.”
Annotations are extracted automatically from the opinions in the
Syfert caselaw corpus and ranked by authority, recency, and
treatment. Dots show Syfertize treatment of the citing case itself.
|