Board OKs Franchising Committee formation

Among several recommendations from the Committee on Scope and Correlation that were approved Jan. 25 by the ISBA Board of Governors is the establishment of a Committee on Franchising and Distribution Law.

The letter of request from John R. F. Baer of Sonnenschein, Nath & Rosenthal was accompanied by a petition signed by 36 ISBA members representing nine law firms and four corporate legal departments.

The petition noted that franchising, which has been regulated since 1974 in Illinois, has become one of the predominant methods of doing business in the United States.

Under the Illinois Franchise Disclosure Act (IFDA) of 1987, the offer, sale, termination and non-renewal of franchises is regulated by a bureau of the Illinois attorney general's office. Its statutorily created Franchise Advisory Board does not meet regularly.

Last year, the International Franchise Association estimated that 7.4 percent of all private-sector jobs were in franchised businesses.

Yet no other bar association or related committee in the state represents the interests of franchise and distribution lawyers, the petition states, although bars in other major states do.

One concern of the practice is the announcement by the Federal Trade Commission that it plans to adopt a revised business opportunity rule broad enough to regulate many additional types of distributorships.

"The IFDA will need to be amended to eliminate inconsistencies between that act and the amended FTC Franchise Rule," the petitioners pointed out.

The Board of Governors approved the request to organize the committee, but with no budgetary authority during the current fiscal year.

The board also approved the following additional Scope and Correlation Committee recommendations.

  • Amended the 1981 Policy on Political Endorsements to prohibit public statements "endorsing a candidate for public office" on behalf of the ISBA, or implying it as an official position of the ISBA.
  • Adopted a Conflict of Interest Policy for employees, officers, section council and committee members that defines areas of conflict and duties to disclose.
  • Authorized the Young Lawyers Division to participate in a Wills for Heroes Foundation program that provides pro bono services to eligible public emergency first responders.
  • Permitted the Committee on Delivery of Legal Services to raise from $15 to $25 the initial half-hour consultation fee for participants in Illinois Lawyer Finder.

Other board action

The ISBA Board of Governors on Jan. 25 agreed to co-sponsor a New York State Bar Association resolution to the American Bar Association in support of changes in financing long-term care for the elderly and disabled.

The proposal was circulated within the ISBA and received support from the Trusts and Estates and Elder Law Section Council and the Committee on Mental Health Law.

The General Practice, Solo and Small Firm Section Council agreed, noting there is "no question that the current system is inefficient and undignified" and forces the elderly who can't afford private care insurance to give away assets to qualify for Medicaid.

The Board of Governors agreed to help fund a Law Day program at The John Marshall Law School on the situation in Darfur, Sudan.

Sponsors are the ISBA International and Immigration Law Section Council, the Human Rights Section Council and the Decalogue Society.

ISBA Second Vice President John G. O'Brien of Arlington Heights obtained board approval to conduct the June 2009 Annual Meeting at The Abbey Resort in Fontana, Wis.

 

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