Illinois Compiled Statutes
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815 ILCS 705/26
(815 ILCS 705/26)
(from Ch. 121 1/2, par. 1726)
Private civil actions.
Any person who offers,
sells, terminates, or fails to renew a franchise in violation of this
Act shall be liable to the franchisee who may sue for damages caused
thereby. This amendatory Act of 1992 is intended to clarify the
existence of a private right of action under existing law with respect to
the termination or nonrenewal of a franchise in violation of this Act.
In the case of a violation of Section 5, 6, 10, 11, or 15 of the Act,
the franchisee may also sue for rescission.
No franchisee may sue for rescission under this Section 26 who
shall fail, within 30 days from the date of receipt thereof, to accept an
offer to return the consideration paid or to repurchase the franchise
purchased by such person. Every offer provided for in this Section shall
be in writing, shall be delivered to the franchisee or sent by certified
mail addressed to the franchisee at such person's last known address, shall
offer to return any consideration paid or to repurchase the franchise for a
price equal to the full amount paid less any net income received by the
franchisee, plus the legal rate of interest thereon, and may require the
franchisee to return to the person making such offer all unsold goods,
equipment, fixtures, leases and similar items received from such person.
Such offer shall continue in force for 30 days from the date on which it
was received by the franchisee and shall advise the franchisee of such
rights and the period of time limited for acceptance thereof. Any
agreement not to accept or refusing or waiving any such offer made during
or prior to the expiration of said 30 days shall be void.
The term "franchisee" as used in this Section shall include the personal
representative or representatives of the franchisee.
Every person who directly or indirectly controls a person liable under
this Section 26, every partner in a firm so liable, every principal
executive officer or director of a corporation so liable, every manager of a limited liability company so liable, every person
occupying a similar status or performing similar functions, and every
employee of a person so liable, who materially aids in the act or
transaction constituting the violation, is also liable jointly and severally
with and to the same extent as such person, unless said person who otherwise
is liable had no knowledge or reasonable basis to have knowledge of the
facts, acts or transactions constituting the alleged violation.
Every franchisee in whose favor judgment is entered in an action
brought under this Section shall be entitled to the costs of the action
including, without limitation, reasonable attorney's fees.
(Source: P.A. 96-648, eff. 10-1-09.)