Illinois Administrative Code
Title 14 - COMMERCE
Part 140 - REGULATIONS UNDER THE ILLINOIS BUSINESS BROKERS ACT OF 1995
Subpart B - REGISTRATION OF BUSINESS BROKERS
Section 140.303 - Providing the Contract With the Disclosure Statement

Universal Citation: 14 IL Admin Code ยง 140.303

Current through Register Vol. 48, No. 38, September 20, 2024

a) Because the purpose of the disclosure statement is to provide full information about the material terms of the business broker's contract with the client, the Secretary of State encourages business brokers to include a copy of the contract with the disclosure statement. When the contract is provided to the client with the disclosure statement, the disclosure statement need not contain either:

1) the full and detailed description of the actual services that the business broker undertakes to perform; or

2) a specific statement of the circumstances under which the business broker will be entitled to obtain or retain consideration from the party with whom the business broker has entered into a contract.

b) The following is an example of a cover page which, if prepared as follows and accurate in all material respects, will be deemed to comply with the Act (important: nothing except the following language in at least 10-point boldface capital letters shall appear on the cover page):

1) DISCLOSURES REQUIRED BY LAW;

2) THE SECRETARY OF STATE HAS NOT REVIEWED AND DOES NOT APPROVE, RECOMMEND, ENDORSE OR SPONSOR ANY BUSINESS BROKERAGE CONTRACT. THE INFORMATION CONTAINED IN THIS DISCLOSURE HAS NOT BEEN VERIFIED BY THE SECRETARY OF STATE; AND

3) IF YOU HAVE ANY QUESTIONS, SEE AN ATTORNEY BEFORE YOU SIGN A CONTRACT OR AGREEMENT.

c) The following is an example of page two (this is not a form):

The information regarding the Business Broker's organization, principals, services and fees is being provided in this Disclosure Statement pursuant to the Illinois Business Brokers Act of 1995 [815 ILCS 307/10-30(b)] .

THE BUSINESS BROKER CONTRACT (OR FEE AGREEMENT) IS PROVIDED WITH THIS DISCLOSURE STATEMENT AND IS AN INTEGRAL PART OF THIS DISCLOSURE STATEMENT.

READ BOTH THIS DISCLOSURE STATEMENT AND THE CONTRACT OR AGREEMENT CAREFULLY. YOU ARE ENCOURAGED TO HAVE THE CONTRACT OR AGREEMENT REVIEWED BY AN ATTORNEY.

Organization

Organization Name:

Type:

Business Name (if different):

Address:

Name(s) under which Business Broker has done business:

Parents/Affiliates:

List of Business Broker's officers, directors, trustees, general partners, general managers, principal executives and others performing similar duties:

President:

Address:

Vice President:

Address:

Principal:

Address:

Services

The actual services that the Business Broker undertakes to perform are set forth in the Business Broker Contract (or Fee Agreement). Those are the only services that the Business Broker is obligated to provide.

Client's Obligations

The circumstances under which you will be obligated to pay the Business Broker (or the Business Broker will be permitted to retain money you have paid) are set forth in the Business Broker Contract (or Fee Agreement). READ THE CONTRACT OR AGREEMENT CAREFULLY.

CLIENT ACKNOWLEDGMENT:

I received this Disclosure Statement and a copy of the Business Broker Contract (or Fee Agreement) on the date set forth below.

Date:

Client Signature:

Client Name (printed):

Disclaimer: These regulations may not be the most recent version. Illinois may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.
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