§200.APPENDIX E. Surety Bond

We, ____(name of franchisor)____, a corporation with principal offices at ___(address of franchisor)____ as principal, and ____(name of surety company)____, a surety company with principal offices located at ____(address of Surety)____ incorporated under the laws of the State of _______________ and authorized to conduct business in the State of Illinois, as Surety, are indebted to the Administrator, Illinois Attorney General, 500 South Second Street, Springfield, Illinois  62706,  Obligee in the sum of ______________ to be paid to the Obligee or its legal representatives, successors, or assigns, for which payment we bind ourselves and our legal representatives and successors, jointly and severally.

 

WHEREAS, the above-named principal has made application to the Administrator for registration of the offer of its franchises under the Illinois Franchise Disclosure Act and is required pursuant to said law to provide the Administrator with a Surety Bond.

 

WHEREAS, the Principal proposes to offer in Illinois ____________ franchise(s) within one year from the effective date of the proposed registration under the Illinois Franchise Disclosure Act; and

 

WHEREAS, the Obligee intends to assign this bond to the respective purchaser(s) of the aforementioned franchise(s) upon sale of the aforementioned franchise(s) to said purchaser(s).

 

The conditions of this bond are that if the Principal, its agent or employees shall:

 

1.         Comply with the Illinois Franchise Disclosure Act and all rules and orders promulgated thereunder; and

 

2.         Pay all damages suffered by any person by reason of the violation of the Illinois Franchise Disclosure Act or any rules or orders promulgated thereunder or any acts, rules or orders amendatory thereof and/or supplementary thereto, or hereafter enacted, or by reason of any misrepresentation, deceit, fraud or omission to state a material fact necessary in order to make any statement made in the light of the circumstances under which such statement was made, not misleading, including, but not limited to, the failure to disclose, as required by Illinois Franchise Disclosure Act and the rules and regulations promulgated thereunder, the true financial condition of franchisor; and

 

3.         Fully completes its obligations under the Franchise Agreement and all related Agreements to provide real estate, improvements, equipment, inventory, training and other items included in the franchise offering, then this obligation shall be void; otherwise this obligation will remain in full force and effect.  This bond and obligation hereunder shall be deemed to run continuously and shall remain in full force and effect for four full year after the date of execution of this document.

 

In the event that any action or proceeding is initiated with respect to this bond, the parties agree that the venue thereof shall be the state or province in which the offer or sale of the franchise occurred.

 

IN WITNESS WHEREOF, Principal and Surety have executed this instrument at this________ day of _______________ , _______ .

 

 

 

 

 

	Principal
	Surety

 

(Source:  Amended at 23 Ill. Reg. 11561, effective September 7, 1999)