14 Ill. Adm. Code 135.100
Exemption by Order
Section 135
Section 135.100Â Exemption by
Order
a)Â Â Â Â Â Â Â Â Pursuant to Section 5-10(h) of the Act, the Secretary of State
may by Order exempt the sale of business opportunities from the requirements of
the Act. The Secretary of State will consider whether to issue such an Order
upon receipt of the following submissions:
1)Â Â Â Â Â Â Â Â a cover letter describing the basis for the exemption by
referencing to this Section and to Section 5-10(h) of the Act;
2)Â Â Â Â Â Â Â Â a description and business history of the applicant, the
amount and form of payment and any additional fees, costs or charges relating
to the business opportunity for which an exemption is being sought;
3)Â Â Â Â Â Â Â Â a description of the applicant's litigation history as stated
in Section 5-35(b)(6)(A) and (7) of the Act;
4)Â Â Â Â Â Â Â Â a description of any bankruptcy petition filed by or against
the applicant, its officers, directors or predecessors within the last ten
years;
5)Â Â Â Â Â Â Â Â a copy of the contract or agreement of sale relating to the
business opportunity which is sought to be subject to the order of exemption;
6)Â Â Â Â Â Â Â Â copies of any promotional materials relating to the business
opportunity for which an exemption is being sought;
7)Â Â Â Â Â Â Â Â a list of all sales and advertisements in Illinois for the
past five years;
8)Â Â Â Â Â Â Â Â a list of administrative agencies which have issued or denied
exemptions, along with copies of the exemptions and any opinions relating
thereto;
9)Â Â Â Â Â Â Â Â a statement of the number of units sold, in the prior twelve
month period, as business opportunities by the applicant in the United States
and in Illinois;
10)Â Â Â Â Â Â Â Â a statement of the number of business opportunities the
applicant intends to offer for sale in Illinois in the following 12 month
period;
11)Â Â Â Â Â Â Â Â a copy of any prospectus or other offering circular used by
the applicant in the offer or sale of the subject business opportunity; and
12)Â Â Â Â Â Â Â Â a certification of facts.
b)Â Â Â Â Â Â Â Â Exemption requests will be granted only when in the public
interest. An exemption will be considered in the public interest under the
following circumstances:
1)Â Â Â Â Â Â Â Â the applicant intends to sell no more than two business
opportunities in Illinois in the ensuing twelve months;
2)Â Â Â Â Â Â Â Â the litigation and bankruptcy history described in subsections
(a)(3) and (4) of this Section is not materially adverse to the interest of the
prospective business opportunity purchasers;
3)Â Â Â Â Â Â Â Â the applicant agrees to provide the business opportunity
purchasers with disclosure as required by Section 5-35(b) of the Act or Section
135.350 of this Part; and
c)Â Â Â Â Â Â Â Â Orders granting an exemption pursuant to this Section shall
remain in effect for 12 months.