Under what circumstances does the Wisconsin Fair Dealership Law supersede provisions in the Benihana Franchise Agreement?

According to Benihana's 2024 Franchise Disclosure Document, for franchisees in Wisconsin, the Wisconsin Fair Dealership Law (ch. 135, Stats.) takes precedence over any conflicting terms within the Benihana Franchise Agreement or related contracts. This means that if any provision in the franchise agreement is inconsistent with the Wisconsin Fair Dealership Law, the state law will govern the relationship between Benihana and the franchisee. This addendum is specifically for franchises sold in Wisconsin to ensure compliance with Wisconsin statutes and regulations.

This protection is significant for prospective Benihana franchisees in Wisconsin because it ensures that certain rights and protections afforded by state law cannot be overridden by the franchise agreement. For example, the FDD also states that Benihana will provide at least 90 days' prior written notice of termination, cancellation, or substantial change in competitive circumstances. The notice will state all the reasons for termination, cancellation, or substantial change in competitive circumstances and will provide that the franchisee has 60 days in which to cure any claimed deficiency. If the deficiency is cured within 60 days, the notice will be void. If the reason for termination, cancellation, or substantial change in competitive circumstances is nonpayment of sums due under the franchise, the franchisee will have 10 days to cure the deficiency.

It is important for potential franchisees to carefully review both the franchise agreement and the Wisconsin Fair Dealership Law to understand their rights and obligations. Franchisees should seek legal counsel to fully understand the implications of this addendum and how the Wisconsin Fair Dealership Law may affect their franchise relationship with Benihana. This ensures that franchisees are aware of the specific protections and requirements under Wisconsin law, providing a more secure and predictable business environment.